Callahan Clients, please log in for direct access to:
Learn What You're Missing
Upgrade Your Subscription
Thank you for your interest in reading the fantastic content we have on CreditUnions.com! However, the page you are trying to access is for subscribers-only. To learn more, select an option below.
All users must now log in to read, research, browse, and have fun on CreditUnions.com. Yes, we still offer freebies. And, yes, it’s worth the extra effort.
Print or PDF this article today because you won't have access to it later. Or, click here to learn how to get 24/7 access.
Credit union's portfolios are typically under-penetrated. The average credit union's penetration rate is just 14%, which reflects a phenomenal opportunity. On average, 100 new, active cardholders will earn the credit union an additional $18,780 in Total Annual Revenue (See Table 1).
So, what can credit unions do to help increase their penetration?
First, and foremost, if you want to be successful in acquiring new credit card accounts in today's market, you need to offer members a competitive product. The competition is offering Platinum, introductory and/or balance transfer promotional rates, ongoing competitive rates, and enticing reward programs. If you're not offering the same, it is going to be extremely difficult to attract them to your credit union's credit card, especially when the most common reasons members pick an alternative credit card to carry in their wallet is exactly for those reasons. You should also regularly review the solicitations that you personally receive in the mail, to ensure your program remains competitive.
If you're convinced that your program is competitive, then it is time to actively acquire new cardholders. But, you must recognize that potential cardholders will respond differently to different marketing channels and the key is to have a well-rounded acquisition campaign that includes all available marketing channels, so that you can catch the attention of more potential cardholders regardless of their individual preferred channel.
For your next acquisition campaign, consider including all the following marketing strategies:
When credit unions put out a competitive product and all encompassing acquisition marketing strategy, success is sure to follow!
This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.
If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at email@example.com or 1-800-446-7453.
July 21, 2008
7/26/2012 03:58 PM
Nice to see the "Little Guys" get their credit (No pun intended!)
Great article...I am passing this onto our our senior management.
Great statistic on how 100 new cards could earn the credit union almost $20,000 in Total Revenue.
Submit your email address to receive daily industry updates and web-only features.
P: (800) 446-7453 | F: (800) 878-4712
1001 Connecticut Ave. NW Suite 1001
Washington, DC 20036