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Credit Union SEG Development

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Grow your membership through SEG development. Learn best practices, use Commercial products as a new door into SEGs, onboard and speak the CEO\'s language with ROI. …

Grow your membership through SEG development. Learn best practices, use Commercial products as a new door into SEGs, onboard and speak the CEO\'s language with ROI.

Want more? Call Eric Gagliano at 937-426-9848.


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  • 1. SEG Development
  • 2. Last Year   Creating a BD Plan   Positioning & Goals   Market & Competitive Overview/Trends   Anticipated Growth Areas   Acquisition   Basic Sales Techniques   Research Tools   Penetration   SEG Agreement   Basic On-Boarding   Welcome Kits   Basic Tactics   Budgeting
  • 3. Today’s Topics
  • 4. Resources   Best Practices from CU Professionals   What do banks do   Brain Storming
  • 5. SEG Acquisition
  • 6. 2008 Sean McDonald  Director, Business Development & Marketing  Liberty Savings Federal Credit Union Jersey City, NJSEG Acquisition Process/Tips
  • 7. Challenges1.  Getting past the gatekeeper for an appointment with decision maker2.  Explain why the CU matters3.  Reaching Penetration Goals & Member Acquisition
  • 8. “We shouldn’t have to work as hard as we have.” “We’re finding that it seems to be becoming harder for banks to get into companies. Business owners are weary of dealing with them.” “Wachovia has a Wachovia@Work program, but in New Jersey, community banks do not offer the types of programs to compete with us.” Sean McDonald  Director, Business Development & Marketing  Liberty Savings Federal Credit Union Jersey City, NJ
  • 9.
  • 10. Before the SEG Signs  Research company’s clients (website, Google, press releases, etc). If company has common relationships:   Ask common SEGs for testimonial directly to decision maker   Ask common partners for personal introduction  Research if decision maker/owner is in organizations or professional groups  Use and leverage all professional contacts  Return referrals to those who give them Network! “Cold calling stinks … no one likes it!”
  • 11. There Is No Magic Bullet
  • 12. “After they get to know me, it’s easier to approachthem about the CU.” “BD Professionals need to find ways to effectively build relationships. Get them to know YOU. I try to help a SEG get new business before I even talk about the Credit Union.” Sean McDonald  Director, Business Development & Marketing  Liberty Savings Federal Credit Union Jersey City, NJ
  • 13. After the SEG Signs  Arrange on-site to speak to all staff (staff meeting, training session, financial literacy seminar)   “Maintain Excellent Credit”   “Managing Money in Difficult Times”  Ask for permission to include “Stuffer” in the next payroll to introduce CU  If SEG has intranet, ask for CU to be included as a company benefit for employee and their families  Target agreement to let CU in periodically throughout year  Provide Welcome Kit/application/info to be included in “new-hire” packets  Get one or more ambassadors to serve as liaison   Ambassador must be trained and enthusiastic about CU
  • 14. “On-sites are fine but they need to be advertised AND endorsed by the decision maker. Sitting in acafeteria or break room for hours on end is a waste of time unless people know that you’re there and what you’re all about BEFOREHAND.” Sean McDonald  Director, Business Development & Marketing  Liberty Savings Federal Credit Union Jersey City, NJ
  • 15. Lessons Learned  When dealing with a SEG owner/decision maker, you need to realize that they, themselves, may have no need for a CU. “Sell” it by focusing on how offering CU membership will ultimately benefit their company (more productive employees, owner will look like a hero)  Try not to agree to on-sites where they say, “You can sit in our break room for a few hours and see what happens.” Your time is valuable and what you offer is important for members. Your visit should be treated with respect. Advertise visit and, if possible distribute information before hand.  Your ambassador is key … They need to be a referral source. There’s nothing wrong with having more than 1 ambassador. “Heck, have 1 for each department! The point is, you need to have a credit union CHAMPION in every SEG.”
  • 16. Lessons Learned  You’ll lose contact with your SEGS overtime if new employees are not communicated to. Getting in front of new hires, either in person or through promotional material is important.  Getting SEGs signed is the easy part. Getting employees to join is hard.
  • 17. Results “We’ve always had better success making an ‘in-person’ pitch rather than a direct mail piece or cold call. Using the Networking methodology, we have signed on almost 150 new SEGs.”
  • 18. SEG Penetration
  • 19. 2009 Nancy Hutchinson SVP Marketing/Business Development Minnesota Power Employees Credit Union Duluth, MNSEG Recruitment & Retention
  • 20. SEG Recruitment & Retention Plan3-Step Process1.  Build relationship with company2.  Recruit employee members3.  Reach out to the wider community
  • 21. Company Relationship  Implement a written CU/SEG agreement   Credit Union Exclusivity   Accountability (“If we do …, you must…”) This agreement is made this 20th day of January, by and between ________ and Minnesota Power Employees Credit Union and shall commence for the period of 36 months, renewing in consecutive terms thereafter. If __________ or MPECU wish to terminate this lease they must notify the other party no less than 60 days prior to renewal. MPECU will operate an automated NCR5670 (ATM) on the business establishment of _________, as it is now located at, _____________, Bldg #2, Duluth, MN 55811. This agreement shall be for the term commencing January 25, 2006, and continuing thereafter for a period until terminated by mutual agreement of the parties, or by either party, pursuant to other provisions of this contract. MPECU shall use the Premises for the sole purpose of constructing, maintaining, and operating (including servicing) an ATM. MPECU shall install the ATM and related communications equipment. Any damage or repair cost to the ATM and related equipment will be the responsibility of MPECU unless caused by negligence of ___________. ___________ shall provide space for the ATM and related equipment. ________ shall be responsible for any modification to the Premises to permit installation of the ATM. Subsequent relocation of the ATM and related equipment on the Premises requested by __________ shall be solely at Cirrus Design’s expense. ___________ shall provide MPECU with thirty (30) days notice of such ATM relocation. __________, at ___________ expense, shall provide for electricity, phone line, and any other utility serving the MPECU ATM. __________ shall maintain the Premises in good order and repair and keep the same free from rubbish and dirt. ___________ agrees to display standard MPECU ATM signage as prescribed by MPECU at the ATM location. MPECU will comply with all applicable laws, ordinances, statutes, and regulations of the United States and the State of Minnesota, related to or affecting use of the Premises and the ATM If ___________ fails to perform any obligation within thirty (30) days after written notice from MPECU, __________ shall be deemed in default hereunder. In the event of default by ___________, MPECU may terminate this agreement upon giving fifteen (15) days written notice to ___________. For purposes of such notice, or notice of any other kind related to this agreement, the parties agree service of such notice shall be deemed effective by sending prepaid certified mail and addressed as indicated below or to such other place as may be designed in writing from time to time.
  • 22. Company Relationship  Position the CU as an employer profit and benefit enhancer   401K contributions   Flex Spending  Focus on key employer decision maker   Keep a “Little Black Book” (Birthdays, Anniversaries, Family info., etc.) “We don’t just focus on one person. People come and go and you don’t want anyone in the organization to think that you treat anyone else special. I’ll often know 4-5 people in a SEG very well.”
  • 23. Company Relationship  Explain the greater business services opportunity   SEG Related Seminars   “Retail Credit Card Fraud Identification”   Relationship Pricing
  • 24. Company Relationship  Demonstrate that employees want financial education  Build effective employer support for the CU   Partnerships   Sponsorships   Picnics  Target, specialize and focus on selected SEGs •  # of Employees •  Do they pay on time? •  General company background “Don’t be afraid to turn down a SEG.”
  • 25. Recruit Members  Incent member enrolment, not contracts produced   MPECU targets 4-6 products per new member  Dedicate significant resources to the SEG program   Management   Branch Managers  Build employee awareness to achieve success   Meet and Greets   Flyers/Stuffers  Offer a “can’t miss” product to build membership   Lifestyle Marketing  Use credit union ambassadors effectively
  • 26. Lifestage Marketing
  • 27. Community Outreach  Pursue a special SEG strategy if yours is a community credit union   “Join organizations”: Chamber, Rotary, etc.   Sponsor activities, or be on boards that build community and awareness
  • 28. “A SEG must be carefully managed and promoted. Credit unions cannot take for granted that oncerecruited, a SEG employer will support the needs of the credit union, and that employees will automatically join and use its services.”“You have to get involved at every level!” Nancy Hutchinson SVP Marketing/Business Development Minnesota Power Employees Credit Union
  • 29. ResultsAfter 12 years of this process, MPECU has enjoyed:  Membership has grown by 41%  Assets size has more than doubled
  • 30. On Boarding
  • 31. Why is On Boarding Important?  According to Frederick Reichheld, author of “The Loyalty Effect”   A 5% increase in retention can lead to a 100% increase in profitability.  In the banking industry, banks spend, on average, $500 to acquire a new customer and less than $52 to retain.   Which would you rather see the bank invest?
  • 32. “Quality in a service or product is not what you put into it. It is what the client or customer gets  out of it.” - Peter Drucker
  • 33. Why is On Boarding Important?Most cross-sell opportunities come in the first few months afterchecking accounts are opened.In fact 73% of all cross sales occur in the first three months of abanking relationship. Gallup Management Journal, November 2005
  • 34. “You’ll never have a product or  price advantage again. They can be easily duplicated, but a strong customer service culture  can’t be copied.” - Jerry Fritz Sooooo … we can’t do this…
  • 35. What NOT to do…
  • 36. Customer Lifecycle   Target – Prospective customer stage, targeting with specific products/services   Acquire – New customers open an account and are introduced to your financial institution   Service – Continuous On Boarding and day-to-day servicing (transaction and value-added)   Develop – Present offers to expand and grow relationship
  • 37. What’s At Stake? “Only 26% of the average banks customers will consider it for their next purchase, and few will look to a bank for their investment needs. To improve their cross-sell odds, banks must target online banking and bill pay customers.” Forrester Research 2006
  • 38. On Boarding is Critical  90 Day Window  Trust the Process  Manage Expectations  Communicate
  • 39. Time is of the Essence
  • 40. Internal Promotion Example
  • 41. “Do what you do so well that they will want to see it again …  and bring their friends.” - Walt Disney
  • 42. BAI- 90 Day Window of Opportunity Report
  • 43. Communication Methods Schedule Example (90 Days): - 1-2 Day - One Week - Two Week - Three Week - 60 Day - 90 Day
  • 44. Communication Methods Schedule Example (1 Year):  1 Day: Personal “Thank You” note 1 Week: Welcome letter/survey 1 Month: Proactive personal call Make certain they received materials Gauge experience  2 Months: Personal call – Ask strategic, customer-focused questions  6 Months: Branch manager calls to ask about experience  1 Year: Handwritten Anniversary Card
  • 45. “Treat every customer as if they sign your paycheck …  because they do.” - Unknown
  • 46. Communication Methods   Email   Phone Call   Letter   Direct Considerations:   Determine who will send each communication (President, Branch Manager, CSR, etc.)   Retail or Business Product
  • 47. Success Tips   Touch customers early and often – include Brand   Service quality at all touch points – direct mail, online, frontline telephone and branch team.   Demonstrate understanding – customer relationship, customer value, and financial expert.   Include actionable steps   Segment Audience – Targeted Communications   Provide Consistent Training   Ensure Accountability   Have a special plan to onboard SEG Ambassadors
  • 48. Keep the MomentumDon’t stop communications after 90 days!•  Touch customers throughout the life of their relationship •  Keep calling/mailing limited to no more than once per quarter•  Target customers according to their current relationship •  Homeownership status •  Age •  Income •  Product Usage •  Other demographics/Lifestyle characteristics•  Include actionable offers in an effort to retain, reward anddeepen relationships.
  • 49. One More Case Study Andy Reed Business Development Manager American Airlines Federal Credit Union Forth Worth, TX
  • 50. Situation  TIP Charter   Aviation Related Organizations   Airline   Government Related Aviation   Employees on airport property (Support & Service)   Specifically excludes: Retail, Restaurants and Car Rental  Geographically Disbursed (43 branches across country)  Cashless CU  Security Regulations/Badging makes it difficult cold call or visit TIPs The Key: 4 Function Structure
  • 51. 1. Car Buying Advocacy Program CUDL
  • 52. 1. Car Buying Advocacy Program  Work with CUDL  Dealer Advocate  Focus on SeminarsSmart, Savvy & SophisticatedA Women’s Guide to Car Buying(Also offer Teen Buying)Presented by Barbara Terry (NASCAR)First Seminar Results:  85 Participants  40 Referrals for Approvals  25 Loans
  • 53. 2. Volunteer ArmyCoordinator Program  American Airlines & other TIP Employees   170 people strong  Represent the credit union   “They’re were we’re not”  Focus on key gate keepers in TIP companies. Typically:   Modest means   Under served/Under banked   Younger (off-sets older AA member-base)Their Job  Refer  Feed information to members
  • 54. 2. Volunteer ArmyFocus – Primary Products  Savings  Checking  Overdraft  DebitRewards Program  Visa Points   Double Points in first 60 days  Incentive Trip (every other year)
  • 55. 2. Volunteer ArmyTraining  Twice/year offer to fly them to TX for 2 ½ day training (Ambassadors asked to attend once every 2 years)   CU philosophy   Initiation into CU culture   Products & Services BasicsAnnual Budget for Entire Program  $19,000  $7,400 for trip every 2 years
  • 56. 2. Volunteer ArmyResults  75-80% of Ambassadors Refer   Ambassadors have higher products per member than CU staff 2009 Goal Actual as of Aug. Consumer Loans $689,000 $1,728,977 Mortgage Loans $837,000 $3,202,957Training Results (April 2009)Of 38 Attendees (60 days post-training):  360 new products  55% refresher attendees (51% of new product sales)
  • 57. 3. Sales Side (2 People)Objective: Track TIP Leads & Establish Relationship  Top-down approach (Focus on CEOs/Owners)“Can you provide contact at local level?”  Bottom-up from local informationMeans:  Cold Call  Email  Visit
  • 58. 3. Sales SideTOOL Ways around security/badging   Escort by AA Employee or Coordinator   Set-up appointments in advance
  • 59. 3. Sales SideGoals:  1,800 total contacts per year (4-5 contacts to land TIP)  15-30 NEW initial (cold call) contacts per month  4 Nationwide PREFERRED PROVIDER agreements
  • 60. 4. Service Side (2 People)Objective: Onsite Service  Onsite CU days   Formal Presentations   Informal “Table” Visits   Break room   Benefit Fair   Company Picnic  Revisits   Ranking system (3, 6, 12 month)   Partners recommendations/desires
  • 61. Credit Union WideAll employees at all levels meet with BD during orientation  Branch GoalsRESULTS:  10% TIP Growth in 2008  29% TIP Growth in 2009
  • 62. When We Return  Commercial Products  ROI/Measurement
  • 63. Commercial Products
  • 64. Commercial Products•  Extend BD relationship as a resource•  Compete against banks•  A new foot in the door•  CUSOs
  • 65. Small Business Dynamics:The Economy-Driving Engine  There are an estimated 25 million small businesses in the U.S. and they are growing at a rate of 14% per year  Small businesses would constitute the world’s 3rd largest economy  Delivers approximately $50 billion in annual revenues  Small businesses tend to be 2 – 3 times more profitable than the average retail customer  1 in 13 US retail banking customers is an “under-banked business (no business checking or savings)
  • 66. What’s going on locally?Business Lending StatisticsMaryland DC CUs Banks CUs BanksTotal Assets $15.4 Billion $40.2 Billion Total Assets $6.7 Billion $1.6 BillionMarket Share/Deposits 11.80% 88.20% Market Share/Deposits 19.62% 80.38%Total Business Loans $169 Million $13 Billion Total Business Loans $2 Million $559 MillionMarket Share/Biz Lend 1.27% 98.73% Market Share/Biz Lend 0.36% 99.64%Biz Loan as % Assets 1.09% 32.62% Biz Loan as % Assets 0.03% 35.54%3 yr Change $92 Million (-$7 Billion) 3 yr Change ($-1 Million) $196 Million 119.1% -33.1% -37.9% 54.0%111 credit unions have outstanding MBLs (23%) 3 credit unions have outstanding MBLs (5%) Source: CUNA Economics & Statistics Dept. All financial data is December 2008.
  • 67. Small Business Dynamics:Who They Are 50% of small business owners prefer to use thesame service providers that they use for theirpersonal needs  32% of these businesses are women-owned, and 9% are minority-owned Nearly 90% of small businesses use commercial banks as their primary financial provider
  • 68. What You’re Up Against Wachovia Bank Value PropositionPeople Service Ideas• Talented, experienced • Guaranteed first-rate • Understanding your local bankers and customer care from business is our #1 relationship specialists banking team, branch, priority. We ask…and backed by a team of telephone or Internet we listen product partner specialists • We regularly ask for our • Proactive, thoughtful customers’ feedback and ideas to help you grow• Access to sales and measure the results your business, retainservice specialists in your employees andways that work for • Convenient, anytime accumulate wealthyou…in person, on the access; it’s easy to dophone, over the web business with us
  • 69. Low-Cost Acquisition TacticsArrange for Senior Managers to speak to Small Business groupsForm partnerships with local colleges to educate small businessowners on lending programs, etc.Establish a “Centers of Influence” program with CPAs andAttorneysTarget select trade showsArrange for CEO presentations to small groups of prospectsCreate special events to recognize top women, minoritybusiness owners and other niche segments
  • 70. More Low-Cost Acquisition TacticsSend white papers/articles to prospects focused onchanges/issues in their industryManage media relationships to gain exposureJoin the regional Economic Development Committee
  • 71. Retention TacticsHost Value-added seminars for small businesses(i.e., “How to better market their businesses”)Leverage sponsorships to benefit customersAsk your good customers for referralsInvite spouses of small business customers to event marketingHold networking breakfasts for customersUtilize in-house Credit Union talent to “educate” customersLearn from your peers. Find out what’s successful and try it inyour market.
  • 72. AnotherValue-Add IdeaPremier America Credit UnionCalifornia & Texas67,554 Members
  • 73. Now That You Asked…Before every customer call, have your sales force consider thefollowing questions. If they don’t ask the questions, someoneelse will and probably already is.  Is it easy to do business with me/us?  How do they perceive my/our customer service?  Am I taking care of their business and personal needs? Am I suggesting better or more innovative ways to meet their present and future needs? If concern areas are outside my scope of responsibility, am I alerting the appropriate people so problems can be addressedand corrected?  Am I achieving a value proposition? Am I/we employing all of the Credit Union’s resources for the benefit of the member?
  • 74. Business Lending CUSOOptions to Build Business Lending:  Develop a Business Lending Dept.  Outsource to a third party  Form CUSO
  • 75. Business Lending CUSO“Given the opportunity in the market, we believed anumber of credit unions could benefit from offeringbusiness services but may not be able to make thenecessary investment to build capabilities on theirown. Capital limits also played a role, as well as theability to participate and diversify a commercial loanportfolio among a group of credit unions.” - Doug Fecher CEO Wright-Patt Credit Union Dayton, Ohio
  • 76. Cooperative Business Services, LLC (Ohio)  7 credit union owners  Focused on underwriting, processing and servicing the loans Each credit unions assigns a primary contact within the CU for small business loans Once a loan is approved, the CUs each fund a certain percentage of the loan – to diversify the risk of each   The CUSO provides servicing, receiving payments and distributing monthly portfolio reports along with loan payments to each CU  CU’s participate up to their 12.25% limit For more info, go to www.cbscuso.com
  • 77. Advantages of CUSO Affiliation
  • 78. Business Lending CUSO“If we do not fund a loan, we will educate theborrower on the reasons why and identify the stepsthey can take to become a stronger credit. If weapprove a loan, we will try to provide several lendingsolutions to the borrower. This level of servicedistinguishes us and credit unions in the smallbusiness market.” - Keith Reed President/COO Cooperative Business Services Dayton, Ohio
  • 79. Business Lending CUSOResults: CUSO was profitable in about 1 yearMore than $10 Million in outstanding balance within 6 monthsServicing 40 Credit Unions ($20 million to $1.4 Billion)PORTFOLIO THROUGH JULY 2009309 Loans $191,155,295Avg. Transaction Size: $618,625Avg. Rate of Return: 6.1943%‘09 Conversion Rate (Appt. to Close): 87.62%
  • 80. A Resource For You •  Participate with other states’ CUs •  6-7 MD/DC Cus •  Lead CU takes min. 10% •  Other CUs do not need to fit your member criteria Example: $10 million loan in NC •  NC CU took $1 million •  Remaining 9 million shared between CUs in: • VA •  NY (2) •  FL • TX
  • 81. Measurement
  • 82. To what level do you currently utilize ROI or ROMI calculations in your marketing planning and/or review?____% 1.  We do not use it at all ____% 2.  We have used it, but have either stopped or use it infrequently.____% 3.  We use it fairly regularly.____% 4.  We constantly measure ROI and use if for pre- and post- planning reviews.
  • 83. “In preparing for battle I havealways found that plans areuseless, but planning is indispensable.”Dwight D. Eisenhower
  • 84. Budget AnalysisMarketing ExpendituresAllocationAdvertising is the mostwidely used promotionaltool with public relationsalmost a quarter of thebudgetAllocation of AdExpendituresNewspapers remain themost important massmedium with $3 out ofevery $10 Source: Forrester’s 2006 Joint Association of National Advertisers (ANA) Online Study
  • 85. TV advertising isn’t getting any better…In the past two years, would you say television advertising has become... Base: 133 television advertisers Source: Forrester’s 2006 Joint Association of National Advertisers (ANA) Online Study
  • 86. …and interactive marketing will benefitNow that 1 in 10 households own DVRs, which of the following forms of non-television advertising -- if any -- will you spend MORE on? Base: 102 television advertisers Source: Forrester’s 2006 Joint Association of National Advertisers (ANA) Online Study
  • 87. How do you create your Marketing Budget for the Year?____% 1.  I take last year’s budget and add/subtract a percentage____% 2.  I base it on the asset size of the credit union
  • 88. Average Bank MarketingBudget ExpendituresBank Assetsin Millions 2000 2005 $(000) $(000)Less than 25 23 2325 - 49.9 32 3850 - 99.9 70 80100 - 249.9 146 179250 - 499.9 328 330500 - 999.9 555 5181,000 - 4,999 1,507 1,2225,000 - 24,999 5,279 5370 Source: ABA Bank Marketing Survey Report
  • 89. How do you create your Marketing Budget for the Year?____% 1.  I take last year’s budget and  add/subtract a percentage____% 2.  I base it on the asset size of the credit union____% 3. I come up with a number of programs that will hit the credit union’s business objectives and I justify the costs for each program____% 4. I take whatever Finance gives me
  • 90. Factors That Affect Your Budget Strategic Direction of the Credit Union Community vs. SEG Market Segments Market Share Growth Goals Orientation towards Marketing and Branding Media Costs in Your Market(s) Number of Branches/Markets Ability to Provide ROI
  • 91. {And YOU can impact it…}
  • 92. Unique, Relevant, Sustainable…
  • 93. Importance of Measuring ROI   Creates the ability to understand and communicate the return on your marketing/BD dollars.  Helps to better evaluate which programs are the most effective and which need to be modified or eliminated   Assists in getting the resources you need  Allows you to have an intelligent conversation regarding your marketing/BD budget  Prevents you from becoming a Dilbert cartoon
  • 94. Developing Marketing Strategy/Planning Defining Brand Strategy/Managing the Brand 3. New 1. Market 2. Competitive 4. Financial 5. Brand 6. Brand 7. Internal Product and Assessment Analysis Analysis with Development management Offer Brand Mgmt. Creation ROI 20. Measuring 8. Client Performance & Understanding Understanding and Managing Clients Effectively Managing the Quality Control &Managing the Marketing Function Segmentation 19. Staff and Partner Twenty Activities of 9. Experience and Service Management Marketing Management 10. Retention 18. Marketing and Process Role Definition Improvement 17. PR and 15. Sales Support Promotions/ 14. 13. Marketing 12. Media Mix 11.Operational 16. Product Internal Comm. Merchandising Message & Selection & Systems Pricing and Creative Planning Offer Executing the Marketing Plan
  • 95.   “We spent $25,000 to sponsor the Hispanic Festival. Did we get our money’s worth from that event?”  “I think giving away a free DVD player for a free checking account is a stupid idea and will never pay for itself.”   “I do not think that home equity direct mail did us any good, should we save the money next quarter and just drop it?”   “We are projected to sell 46,000 new small business checking accounts this year. How much could we sell next year?”   “I liked our TV commercials, but did they really do anything for us?”
  • 96. “We spent $25,000 to sponsor the HispanicFestival. Did we get our money’s worth from that event?”
  • 97. How many checking accounts will I need togenerate to pay for the Event Sponsorship ?
  • 98. Generated 374 new checking accounts at a cost per acquisition of $67 per accountEstimated profit of $55,410 based upon a one year account profit model, or over a 220% return on investmentHousehold profitability of the accounts after a 6 month basis averaged $278 Gained brand exposure to critical market segment of over 180,000 in a 5 day period
  • 99.   Do as much work after you launch the program as you did to prepare for it   Talk to clients, operations, front line sales personnel, ambassadors and managers   Speak to the 5 best performing branches/SEGs and the 5 worst performing branches/SEGs   The numbers alone do not always tell the story
  • 100. “We are projected to sell 46,000 new small business checking accounts this year. How much could we sell next year?”
  • 101. “Doing the same things overand over again and expecting different results.”
  • 102. Projections estimate a 15% increase in 2005
  • 103.   A new offer to give away a $50 Office Max gift card for the first quarter  Our prospect direct mail budget increases from 1.5 million pieces to 2 million pieces  Our member direct mail budget increases from 300,000 to 500,000 pieces   We add 10 new sales people
  • 104. “I think giving away a freeDVD player for a free checking account is astupid idea and will never pay for itself.”
  • 105. What is the lift required on CheckingAccount Sales to pay for a DVD Player?
  • 106. “I do not think thathome equity direct mailing did us any good. Should we save the moneynext quarter and just drop it?”
  • 107.   Recover the cost of your marketing expenses, or achieve a 100% ROI  Recover your expenses and produce a 20% return on your investment, or a 120% ROI  Double the return on your marketing dollars, or produce a 200% ROI
  • 108. Mailed 120,000 Home Equity Pieces andTested $100 Home Depot Offer
  • 109. “I liked our TV commercials, but did  they really do anything for us?”
  • 110. Recommend Retain Acquisition Advocate Communication   & WOM Driven Commitment Cross- Sales   “Rational” and “emotional” Positive elements Purchase Experience Active Consideration Consider Seek Retention/ Information Accept Understand / Value Growth Information Experience   Aware DrivenUnaware “Rational” and   “emotional” elements
  • 111. Examine both sales and awareness level changes
  • 112. “If marketing were easy, we would all be makingminimum wage.”
  • 113. A Perspective CEO, Senior Management, and Board   Leveraging capital   Expense vs. investment   Support vs. lead CEOs and CFOs typically grow up on the “numbers side” of banking   Speak their language   Think like your CEO/CFO   Gain buy in   Discuss assumptions
  • 114. Survey of Fortune 500 CompaniesWhat is the most important skillfor a CEO to have for the future growth of their organization? Financial 14% Marketing 52%
  • 115. ur ned t Re ue Val Strategic OptimizingEmerging time
  • 116. With what frequency do you (or a member of your Marketing function) attend the credit union’s regular  Asset/Liability Committee (ALCO) meetings?____% 1.  I’m a member. I attend regularly ____% 2.  I’ve attended, but am not a member____% 3.  I’ve never attended
  • 117.   Know your “Champions”   Use the analytics at your disposal  Find information  Talk with the front-line  Dissect the competition  Share what you learn Use your MCIF to drive information and automate some processes   Create ambassadors   Engage all staff
  • 118. Be your best promoter And most vocal critic Share the progress Weekly Monthly Recaps Program End Post-mortem
  • 119.  Marketing’s total impact   Margin earned   Non interest revenue   Average balances   Cross selling   Promotional expense  Quantity and quality measurements
  • 120. Summary  Use facts and data to create intelligent conversations with your managers  Build a strong partnership with your Finance Group  Results for programs work best when both the field and Marketing have ownership  Pilot programs are a great tool for testing new ideas and creating realistic projections  Always keep your results close to you
  • 121. ROI Wrap-Up: Key Take-Home Points
  • 122. Wrap-Up: Key Take-Home Points
  • 123. From the MarketMatch Team… Thank Thank You! You! Feedback welcomed, please email me at: egagliano@marketmatch.com