Statement Marketing OptionsGetting the Most Out of Transpromo Statement Marketing

LKCS

Data Systems of Texas and Sharetec

• LKCS currently processes statements for over 50 Sharetec clients

• Close working relationship with Data Systems of Texas and Sharetec

Statement Reformatting

• Ability to modify the statement layout to make statements easier to read and understand– Fonts– Account Headings– Graphics– Data Alignment / Columns– Data Suppression– Data Merging

Typical Sharetec Statement

Reformatted Sharetec Statement

Alternate Sharetec Format

Check Images (Optional)

Transpromo Statement Marketing

• What is Transpromo?

– Transpromo is a compound expression formed from the words "transaction" and "promotional".

– By adding relevant messages, you can piggyback targeted promotions and advertising onto existing transaction-related documents, such as statements.

– Transpromotional documents combine and data mining and business intelligence technology with variable data printing.

• TAKE ADVANTAGE OF “FREE” POSTAGE!

– Include targeted advertising with your statements

Transpromo Options

• Statement Ads/Onserts– LKCS print ads directly on your statements for pennies.

– Ads sent to all members OR we can target specific groups of members to receive one or more of these messages.

– You are no longer limited to short, text-only messages. Include graphics, logos, fonts, photos, etc. Even personalize the ads.

– Same technology enables loan payment coupons, rate grids, regulatory notices, etc. to be delivered on your statements.

– Design the ads yourself, select concepts from our online catalog, or have LKCS custom-design ads just for you.

Statement Onserts

Sharetec Statement Sample

More Transpromo

• Statement Letters– Include personalized direct mail

letters as the first page of your account statements. NO EXTRA POSTAGE!

– According to the DMA, personalized letters remain as the most effective direct mail method.

– Use for pre-approvals, referral campaigns, skip-a-pay, investment relationships, welcome new members, etc.

Statement Letters

• Pre-Screen Loan Campaigns

Statement Marketing

• Selective Inserting– Take statement stuffers one step further.

– Target which members receive certain inserts. Selectively insert brochures, flyers and newsletters by criteria you select such as:

• Account relationships• Account balances• Account activity• Geography• ANY other conditions identifiable in your statement data• ANY other conditions identifiable in a separate control file.

Statement Marketing (continued)

• Envelope Backprinting– Try to open an envelope without seeing the back side.

– The back of the envelope is a billboard. Use this space.

– INEXPENSIVE – LKCS charges just over 1 cent per envelope

– Choose from our stock designs each quarter, have LKCS custom-design an ad for you, or supply your own unique ad.

E-Statements

• Clearly the future for majority of account statements

• Including statement marketing is just as important

All transpromo techniques can be

incorporated into Sharetece-statements!

Top 5 Reasons to Use TransPromo NOW!

• REASON #1: Statements get opened and read

Source: InfoTrends Trans Meets Promo…Is it More than Market Hype?

Reason #2: Transpromo Saves Money

• Reduce postage costs

– More than 75% of the cost of mail is attributed to postage. Aggregate direct marketing messages or notifications with documents that are already going into the mailstream.

• Transpromo reduces overall printing costs

– Determine which documents can be combined to decrease the volume of communications while maximizing overall effectiveness. This translates to overall savings in print through the combination of direct mail and transaction documents.

Reason #3: Supports Migration to E-Statements

• LKCS’ E-Statements are IDENTICAL to paper statements – including all transpromo marketing elements.

• Utilize transpromo to provide incentives on paper statements and notices for account holders to adopt e-statements.

• Color doesn’t cost more on e-statements.

Reason #4: Transpromo is Green

• The fundamental concept with TransPromo is that the message or offer is embedded in the transactional document.

• Replacing inserts with “onserts” reduces carbon emissions and contributes to the goals of a greener organization.

• In addition, any of the mailing suppressed or combined as a result of TransPromo saves paper, envelopes, and the expense of transporting these materials.

Reason #5: Transpromo works

• Will people look at ads on their statements?– 64% of respondents to a recent survey by Zoomerang and

InfoPrint said they would use personalized coupons if printed onto monthly bills and statements (with nearly half responding that these would encourage brand loyalty).

– Compare this to the DMA Response Rate Trend Report that says nearly 60 percent of direct mail campaigns in financial services aimed to produce a direct sale. The average response rate was a comparatively low 1.01%.

Onserts (ads) printed on your statements will get read.

LKCS Makes It Easy

• LKCS identifies your transpromo recipients.

• LKCS designs the statement ads and other transpromo materials.

• LKCS programs the variable data printing and e-statement display.

• LKCS prints and mails your statements and displays your transpromo messages online.

• YOU GET THE CREDIT.

One Time Use vs. Campaigns

• All of the above examples were intended to support one promotion for one month.

• How else could you utilize transpromo statement marketing?

• Consider developing ongoing statement-based marketing campaigns

• The advantages:– “Set it and forget it” (at least for a few months)– Take advantage of special opportunities– True one-to-one marketing

Transpromo Statement Campaigns

• Some ideas:

– New Account Holders

– CD Renewals

– Loan Payoffs

– Auto Loan Recapture

– Birthday Messages

– Loan Payment Coupons

– Kids Club/Teen Club/Senior Club

– New Mergers/Branch Acquisitions

– New SEGs

– Cross-Sell Opportunities

Ongoing Campaign Examples

Matrix Statement Campaigns

• Series of statement onserts sent out over a period of months/quarters to cross-sell additional products and services to specific groups of account holders.

– Same concept as Matrix Mailings.

– Terrific solution for new account holders, mergers, new branch locations, new SEGs, expanded field of membership, etc.

– Ability to run multiple matrices at same time.

Matrix Campaign Case Study

• NorthStar Credit Union

• Matrix Layout

• Note: Each statement onsertis actually a coupon that includes a special offer

Matrix Ad Examples

Matrix Onsert Campaign Results

• LKCS tracks the results of this matrix campaign for NorthStar CU on a monthly basis

• We are able to measure:

– New accounts opened (and associated balances)

– New services added (home banking, bill pay, direct deposit, e-statements, etc.)

• This campaign EASILY pays for itself based on new business generated

Thank You!

Sid HaasVice President of Business Development

LKCSDirect: 815-220-3904

E-Mail: sid.haas@lk-cs.com