Put Fall Promos in Place Now

by John Blom and Margie Church

With summer winding down, there are a few important seasonal opportunities you should be working on right now to end the year strongly.

International Credit Union Day – October 18. Show off your products and services with in-branch activities all week long! Have your lending department ready to work when you hold a free seminar on mortgage refinancing or line up prospects for auto loan pre-approvals. Brag about your free checking and open those accounts. A pre-approved credit card or personal loan offer from the credit union is a wonderful way to help members feel optimistic about handling upcoming holiday expenses. Show off low interest rates on your credit card and let members take advantage of the benefits right now. Bring in the Shred-it services; hold a prize drawing for new members.

Black Friday – November 23. Did you know that in 2011, Americans spent $5.6 billion on Black Friday? Low, fixed rates and no balance transfer fees spell money-saving credit card.

Also consider a Cyber Saturday virtual event that has a short window of opportunity, like a rate sale on a loan or a bonus interest rate on an investment. Engage members and prospects on a personal level with activities at the branches.

Cyber Monday experienced a 24.6% increase in 2011 sales over 2010. Oh, and a landslide percentage of purchases are made at noon, over lunch breaks via laptops and mobile devices. Did we mention credit card? Or how about a personal loan with a great rate?

Don't forget your holiday skip-a-pay promotion. We see credit unions starting these as early as September! The fee income alone usually pays for these wildly popular campaigns. If you've never tried one, 'tis definitely the season to start!

Deliver your promotion with the proven winner—direct mail. Increase your reach by advertising though multi-channels such as in-branch materials and email marketing. 

If you haven't got a great direct marketing partner, we can handle any or all of these promos for you. We'll manage your data, plus provide the creative and fulfillment. Talk to us about which marketing channels and techniques to use to get the best results you can, even on a budget made for Scrooge.

Pinpoint Direct Marketing creates data-driven, electronic and print marketing campaigns for the financial industry. Its customized campaigns achieve excellent results without premium costs. Learn more about Pinpoint Direct Marketing at www.PDMKT.com or call Kerry Blom, owner, 866-784-7555.

Lending Purse Strings Loosen

By John Blom and Margie Church

It's been all over the news that subprime lending for auto loans is on the rise. If you haven't created any marketing campaigns to members with credit scores below 680, you might be getting the itch.

Here's the kicker. Many of these people have been sitting on the fence about replacing their vehicles and now, they may be hesitant to come forward because their financial situation hasn't been great.  You can diffuse that fear by acknowledging that the member's credit may have taken some dings, and telling them your lending department makes decisions on a case-by-case basis. If they have concerns or other needs, this is the right time to get in touch with you.

The obvious approach in this auto loan campaign is a pre-qualified or pre-approved offer. Don't make the member guess. They want solutions, not gimmicks. Use variable data to provide a rate and payment example based on their individual score. Marry the direct mail with a PURL. If things look good or they want to talk, the PURL lets them respond immediately. Follow up with an email or another direct mail piece. Spread the news on your website and to branch visitors with supporting ads and materials.

The automotive market is having a banner year. A carefully-crafted promotion to your members could be a great boost to your local economy.

Pinpoint Direct Marketing creates data-driven, electronic and print marketing campaigns for the financial industry. Its customized campaigns achieve excellent results without premium costs. Learn more about Pinpoint Direct Marketing at www.PDMKT.com or call Kerry Blom, owner, 866-784-7555.

12 Commandments of Vibrant, Effective Direct Marketing

By John Blom and Margie Church 

Lots of us have ended up in marketing roles we were untrained to handle. For some, this is a fun, fantastic challenge. For others, it's a real nail-biter. If you're a notch above the clueless category, here are 12 tips to making your next campaign look like a pro did it.

1. Competitive/compelling offer. Do your homework on the competition. You won't get leader-of-the-pack results if you have an also-ran offer. 
2. Ensure internal systems are in place to handle responses. Involve member services early in the process to make sure they understand what's being promoted, and how to react to hot/warm/cold leads. 
3. Segment data to create a personalized, relevant, timely message. Tailor photography and copy to the recipient group for the best impact. 
4. Write a clear headline. It can be clever and provocative as long as it helps your cause and supports the graphic. 
5. Eye path is linear. Take this test: ask a few coworkers to look at your ad. Did it start and end where you wanted, or were their eyes bouncing around? Bouncing eyeballs are only funny on Halloween. 
6. Colors and logos should match branding. Complimentary colors add interest. Wild combinations are best for circus ads. 
7. Hire a copywriter. The English language is a minefield of grammar boo-boos waiting to embarrass you. If you can't hire a copywriter, use free, online grammar tools and pay close attention to homophone snafus. Verify dates, phone numbers and addresses. The copy tone should reflect the offer, the audience, and design. Read your ad out loud. If it sounds stiff and stilted, get out the eraser. Humor is only funny if the reader understands why the chicken crossed the road. 
8. Stick to the subject. White space isn't something to fear. Resist cluttering your message with extraneous details. Kitchen sink copywriting never works. In fact, neither does kitchen sink design. Sometimes you need to delete copy and graphics that just don't work, no matter how much you love them. Share the extra details with your customers when they respond to your promotion. 
9. Clear call to action, front and center. Tell me what you want me to do. Assumptions are deadly. 
10. Use easy response tools. Personalized URLs (PURLs ), hyperlinks to online applications, and email are great to use. Branch-code phone numbers, addresses, and signatures to get customers in the door, too. If you use a QR Code, give the respondent a good reason to visit the landing page. Send the mobile user right to the page they need; don't make them hunt. If the landing page is a video, be aware of data charges and the time it takes to load/view whatever you're offering. 
11. Easy-to-read mobile and traditional formatting are must haves for QR Codes, web pages, and blogs. The technology to convert traditional pages to mobile viewing is usually free and takes seconds. The customer frustration it saves is priceless. 
12. You've come this far, don't risk being tossed or deleted unread. Avoid words and techniques that make your campaign look like junk mail. Window envelopes with no personalization look like a shotgun blast into the membership and community. Watch email subject lines for spam words and don't disguise words such as ca$h that'll be tagged as spam by the receiving ISP. 

Follow these tips and your campaign will have a higher than average chance to shine.

Pinpoint Direct Marketing creates data-driven, electronic and print marketing campaigns for the financial industry. Its customized campaigns achieve excellent results without premium costs. Learn more about Pinpoint Direct Marketing at www.PDMKT.com or call Kerry Blom, owner, 866-784-7555.

Time to Kick Butt on Credit Card Promos

By John Blom and Margie Church

According to Bankrate.com, the average interest rate on cash back cards is 16.39%. Balance transfer cards come in at 16.14%, and rewards card rates at 15.48%.*

Those rates are higher than most credit union credit cards. Heck, they're even higher than a lot of personal lines of credit that credit unions offer, too. Lots of these cards feature 0% introductory rates and afterward, a variable rate. All this has me wondering why credit unions aren't knocking down doors with summer credit card promotions. Last time I checked (which was this morning), Americans were still trying to pay down their credit card debt and carefully manage any new debt.

If your CU offers a rate lower than these and especially if you have a fixed rate and no balance transfer fee, this seems the perfect time to offer a pre-qualified or pre-approved offer. Dig into your data to find those members without your card and give them a hand up, credit unions! 

A razor-sharp direct mail piece that illustrates the savings could be a welcome sight in your members' mailboxes. The lower rate just might make them feel better about using credit to have a little fun for a change. Transferring a balance to save on interest payments and pay off the debt faster can be a real relief.  

Include a Personal URL with your direct mail and email to make it easy to communicate to your member and get an immediate response. Sending an email as a follow-up to your product offer is also a friendly reminder!

Using pre-screened data makes this campaign targeted and super cost-efficient. The end result is a higher ROI and a high-five from your lending department. Maybe you'll even have some budget left over to run a second flight. And we all know how important frequency and reach are. 

In the member's eyes, you guys are heroes, and the relationship between you deepens. Looks like a win-win for everyone.

Summer credit card promotions.  Simple. Fast. Profitable.

Bankrate.com rates 6/21/2012.

Pinpoint Direct Marketing creates data-driven, electronic and print marketing campaigns for the financial industry. Its customized campaigns achieve excellent results without premium costs. Learn more about Pinpoint Direct Marketing at www.PDMKT.com or call Kerry Blom, owner, 866-784-7555.

Stop the Slow Leak in Your Auto Loan Portfolio

 By John Blom and Margie Church  Originally published on CUinsight.com.

Vehicle purchases frequently are impulse buys, and auto loans have become serious bread and butter to many credit unions. The wise marketer knows that getting a member's repeat business can't be an assumption. It must be earned as part of a strategic effort. 

"Hail Mary Marketing" has its place as a solid prospecting strategy. Use it to target members without auto loans and to create awareness in the communities the credit union serves. It works. However, this strategy isn't the best way to retain the valuable auto loan business the credit union already has. You need to have a more focused effort.

Stop-Leak Retention Strategies

We recommend developing a solid retention program today to keep millions of dollars in auto loans from leaving your credit union tomorrow. How? Bi-annually, append to your data with vehicle values to provide a good guide to how much equity a member has.  Sort the data, and create targeted messages depending on where this member is in their auto loan lifecycle. 

Here are the important markers to look for:

      The vehicle's trade-in value is higher than the loan balance. This is an open artery for an impulsive purchase. These loans are most vulnerable right now. These members must be hearing from you very regularly to ensure you're not forgotten. Pre-approval and special financing incentives via direct mail and email are good tactics to use. Perhaps a personal call from member services or the loan department can be made, too. 

     The vehicle's retail value is higher than the loan balance. Obviously these members can sell their vehicle outright, and use the money for a down payment on something new. The loan is vulnerable if the mood strikes. Increase your communication frequency to these members. Remind them about the benefits of pre-qualification, low rates, additional discounts, and any services that might steer them back to the credit union when they make a move. A refinancing offer to access the cash equity is something to consider, too.

     The member has no equity. Contact them a few times a year to illustrate their equity progress. Communicate sound financial practices and other credit union services to deepen the relationship with you.

Budgets are still very tight in America, and people save money by financing through a credit union. Help members avoid the costly mistake of choosing dealer or bank financing.  A strong retention program throughout the loan lifecycle reminds them their credit union is the best place to come for their vehicle (and all) financing needs. It strengthens your auto loan portfolio and other credit union products and services, too.

 

Pinpoint Direct Marketing creates data-driven, electronic and print marketing campaigns for the financial industry. Its customized campaigns achieve excellent results without premium costs. Learn more about Pinpoint Direct Marketing at www.PDMKT.com or call Kerry Blom, owner, 866-784-7555.

Social Media's Messing with Business Attitudes

By John Blom and Margie Church

It's well-known that one of the planks of social media is authenticity.  To be effective, social media interactions require us to reveal the person or the people behind the brick and mortar. While we're minding our social Ps and Qs on the Internet, ask yourself whether the same good manners you're using on social media started in the office first. From the vendors you use, to every single person who comes in or calls, do you offer the same high level of courtesy and service you do on social media?

Before you get all flustered and think poorly of me for even asking, think of this: if you have no witnesses, do you act the same as if you had a room full? 

Social media interactions can be seen and read by thousands of people at the click of a button. But if someone walks in your office, perhaps no one will overhear the conversation. Before the advent of social communications tools, a member had fewer ways to share their experiences – good and bad—with the world. But today, the information highway is never closed. Fearing that reality doesn't change it either. If you shut down access to social media at work, that doesn't mean employees and customers won't discuss their experiences afterhours. The underlying message is your electronic and your human personas need to mesh.

What to do?

Support for social media in a commercial application has to come from the top down. I suggest it has to come from the inside out, as well. Drive that authenticity through your entire organization. Make every interaction with your credit union hit a high standard of sincerity and excellence. Reward employees for their good attitude and effort toward making your credit union live up to the credit union motto: "Not for profit, not for charity, but for service."

What have been your successes and struggles with social media? We all learn when we share.

Pinpoint Direct Marketing creates data-driven, electronic and print marketing campaigns for the financial industry. Its customized campaigns achieve excellent results without premium costs. Learn more about Pinpoint Direct Marketing at www.PDMKT.com or call Kerry Blom, owner, 866-784-7555.

Fabulous FABs: Features, Advantages, Benefits

By John Blom and Margie Church

Every product or service has these three components. Sometimes we have trouble figuring out the differences among them. When you identify the FABs of your product or service, you'll know how to best position it in the market so it stands out, not blends in with the competition.

Occasionally, we see only the feature stated in an ad. Consumers are have to figure out the advantages and benefits themselves. Will they guess the answers you wanted them to? Want to bet those products sell poorly? Like leaving off a strong call to action, not stating the clear advantages or benefits of whatever you're selling is like giving someone a flashlight without batteries. It totally defeats the purpose of advertising. 

Show me how!

I'm a fan of the blank sheet of paper. Start with the product name and brainstorm the answers. Bring member services in for the activity. They have front-line information you can use. Your answers are likely to be different, from mine because of your individual situation. That's terrific. Don't censor yourself. You can erase later.

Product: Credit Union Credit Card

FEATURES (Unique Value)	ADVANTAGES (How Product/Service Makes Life Better/Positive)	BENEFITS (Quantifiable Results)
9% APR	Cheaper than many bank and store credit cards.	Save money in interest payments and fees.
	More financially responsible, smart.	Pay off debt faster.
	Feel better when using the card.
Fixed rate	Cost of credit more predictable than variable rate.	Debt-free faster. Saves money.
	Easier to manage budget. Payment is more predictable than variable-rate cards.	Less stress.
	Easier to determine cost of credit if balance is carried.	Better budget management.
	Not an introductory rate, no unhappy surprises	Save money, predictable payment, easier to budget, pay off debt faster.
No fee for purchases, cash, transfers	No financial penalties.	Save money.
	Don't have to remember rates or carry multiple cards.	Convenience, less stress.
	More financially responsible, smart.
Rewards	Feel-good prizes and incentives given to use the card. Competitor's cards don't.	Enjoyment, fun.
	Status/prestige elevated to carry this card compared to other cards.	Consumer loyalty acknowledged.
Automatic payments	One less check to write/payment to manage.	Convenience.
		Protects credit rating when payment is never late.
		Easy to manage account.
Local Credit Decision	Personal decision based on an individual, not a number or corporate sales goal.	A less-than-ideal credit score could still qualify for a great, money-saving card.

I see some buzz words on the chart – SAVE, CONVENIENCE, EASY, SMART. One or two of them could be used in an attention-grabbing headline. You might illustrate one or two of the strongest advantages in your copy – perhaps in a rate comparison or payment example. End with the most important benefits. You don't need to use all these FABs in your advertising. Doing so would be cumbersome and clutter your ad.

Hidden Benefits

Leverage your concept and content in as many ways possible to save money, reinforce  message, and increase frequency. I call this giving a concept "legs."  Hand a chart like this to tellers and member services as a cross-selling aid. When staff members understand exactly what to say, the process is easier and more comfortable.

Take the time to identify your FABs and you'll be seeing FABulous results soon, too.

Do you take the time to identify FABs? How do you use it to support member services?  What's worked? Share! We learn from each other.

Pinpoint Direct Marketing creates data-driven, electronic and print marketing campaigns for the financial industry. Its customized campaigns achieve excellent results without premium costs. Learn more about Pinpoint Direct Marketing at www.PDMKT.com or call Kerry Blom, owner, 866-784-7555.