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.

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.

Did you miss these?

By John Blom and Margie Church

We spend most of our time at our "home" blogging about credit union marketing techniques and philosophies. As always, our goal is to help you become better and more successful at your job. Recently, our peers have published some of our work. If you haven't read these articles, please do. You're bound to gain some new insights.

At The Financial Brand:
Harnessing the Power of Email: 3 Strategies for Financial Marketers
Learn ways to build success and confidence using email marketing.

Targeting Gen Y: Rich Opportunities with Direct Marketing
This diverse audience has lots of needs and issues. Learn how to engage the group with age-appropriate messages that aren't expensive or complicated to create.

At CUinsight:
Stop the Slow Leak in Your Credit Union's Auto Loan Portfolio
Building a solid loan retention program today can help you from losing millions in future auto loans.

We'd like to hear your thoughts. Please leave a comment, and if you like what you see, please subscribe to our blog.

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.

A Forgotten Practice: Data Segmentation

By John Blom and Margie Church

Data segmentation in marketing is a practice you may have forgotten about, but it's one we recommend for every campaign. By appealing to members' needs at various life stages or situations, you're making your message more personal and relevant. A more refined message will have a positive, stronger impact on your campaign. 

We always recommend using the credit union's data or MCIF to create a retention, acquisition, and prospecting strategy for every campaign. Using auto loans as an example, here's how to do it.

First, reach out to the people who have auto loans with you now (or recently so) to retain their business. You can't assume that once a member has opened a loan with you, they'll come back for more without any incentive. Their loan can be at risk the moment the balance due is lower than their vehicle's equity. Remember auto purchases are usually emotional decisions. Be clear about all the financial and time-saving benefits of financing their next vehicle with the credit union. A pre-qualified offer, additional rate discount, or other incentive should be considered.

For an acquisition strategy, modify the message slightly to reach members who have an auto loan with another financial institution. Maybe a cash-saving refinance offer will help you acquire the business of these members. Make payment examples, rates, and terms front and center to show how much money could be saved by financing at your credit union.

A broad-sweeping, prospecting message is the third important tactic to take. Sadly, this is often the only marketing strategy many credit unions have for all the segments. Prospecting typically promotes a single product. With good frequency, they also familiarize the community with your existence and the benefits of membership, but prospecting does little to protect the business the credit union already has. Put rates, terms, and payment examples front and center to make it easy for people to compare their current payment and/or their budget with your offer. You'll write some new loans because your offer reached some people at the right time and place, but waste a lot of money on those who are in no position to buy or aren't interested. That's why prospecting shouldn't be your primary strategy. 

You might be thinking you can't afford to create a custom campaign using segmentation. You don't need to have a do-over for each version to accomplish this. In fact, you might send out fewer pieces, but your  overall results will be better because you strategically positioned your message. Switch out the graphics, headline, and a sentence or two and you're done. Not very costly at all. 

Here's something else to think about. Pre-approval auto loan offers are a really hot item right now, but credit scoring is costly and time-consuming. Think about shifting the expense of credit scoring to repeating the campaign two or three times for greater exposure. If you've segmented your data, you'll benefit from a targeted message and increased frequency, perhaps more so than a one-time pre-approval.

The true value of segmentation is often in the eye of the beholder. Make sure your members are seeing your credit union clearly.

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.

Here and Gone

 

By John Blom and Margie Church 

Sometimes we get so busy reacting to the current trend, that we lose focus on the future. Yes, auto buying season is upon us and rates are fantastic. This year is projected to be very strong for manufacturers and dealers. Consumers are loosening their purse strings and shopping for vehicles to replace those they've held on far longer than they historically have.

With auto shows popping up everywhere, it's the perfect time to run a pre-approved or pre-qualified promotion to your members. Arm them with money to shop realistically for a vehicle they want— and you keep their business. Everyone is happy

Going after brand new auto purchases might be a no-brainer, but what about the members who have equity in their vehicles? They are ripe pickings for a trade-in and a new loan, too. Have you made the credit union's rates and terms top-of-mind to help ensure these members don’t make the mistake of financing at the dealership or bank? Ouch.

And as long that new car scent is in the air, this is a great time to scrutinize your entire auto loan portfolio, not just a bottom line target. Take a look at the exposure you've got from loans coming to term in the next twelve months. Formulate a strategy to reach these members in case they're thinking of trading, or want to use the equity in their vehicle for another purpose. 

While you're investigating, learn the health of your auto loan portfolio and the quality of your VIN data. Having this information helps you recognize the exposure your credit union has in potential loan turnover and loss. Millions of dollars in auto loans could walk out of your door to a bank or dealership.   

And you'll be thinking those loans were here and now gone.

Is your credit union doing any of these things to hang on to its auto loans? Share with us. We're always interested in learning.

Pinpoint Direct Marketing exclusively serves the U.S. credit union market. We provide excellent, turnkey or a' la carte creative services at a great value. Click to learn more about us.

Use Credit Reports to Score?

By John Blom and Margie Church

What if you started using credit report inquiries to reach members and prospects who are on the hunt for new loans and refis outside your financial institution? Tapping into credit inquiries for auto loans and mortgages (first and second) could have a pretty good payoff. Consumers are still spending conservatively, so anything your credit union can do to help them save cash is potentially worth the effort.

What about the expense of doing this? 

There's the potential sticking point.  

There are two costs to consider: lead acquisition and fulfillment. Ask your service provider for some historical information about the kinds of data you're seeking. The lead volume may be quite low, but if you're confident about the quality, that could diminish or negate the acquisition cost concern. 

Managing a program such as this in-house, requires a real commitment. Leads must be checked and pursued every day. Many credit unions don't have a large staff, and for that reason, using a direct marketing firm for fulfillment probably makes more sense. They have the systems set up to handle projects like these automatically.

What's the right response?

This is a 100-percent prospecting activity, so keep your costs low, and make wise choices. Using cross-channel marketing helps to maximize your success. Start with tried-and-true direct mail. Timing is everything, so send a postcard, via first class mail, to any prospect.   

Do you have the member's email address? Use it for a fast and very cost-efficient way to reach them.  Is the member using mobile banking? Send an alert or text message! A combination of these tactics lets your credit union strike while the iron is hot.

As the economy's knees stop knocking, other opportunities are knocking. Mining credit inquiries could open a new door.

Pinpoint Direct Marketing exclusively serves the U.S. credit union market. We provide excellent, turnkey or a' la carte creative services at a great value. Click to learn more about us.