Right Offer To Right Member Pays Big Loan Dividends

While most CU's are struggling with ways to generate new loans, one Mid-Atlantic CU has found the secret. Targeted eStatements are proving to be one of the most productive and cost-effective loan-generation tools in the marketing toolbox. Here’s how one CU is having tremendous success getting more loans out the door

 

By DigitalMailer, Inc.

 

While most CU's are struggling with ways to generate new loans, one Mid-Atlantic CU has found the secret. Targeted eStatements are proving to be one of the most productive and cost-effective loan-generation tools in the marketing toolbox. Here’s how one CU is having tremendous success getting more loans out the door….

How Did They Do It?

Over the last half of 2001, NWFCU (Herndon, VA) began a strategic initiative to increase loan volume by targeting their members through eStatement and web site campaigns. Using available database information and the simple, yet powerful DigitalMailer eStatement engine, NWFCU used the 44,000 monthly marketing opportunities to generate new loans. The CU’s MCIF system identified members that most likely had car loans and credit cards elsewhere. Once identified, their eStatement program delivered "tailored offers" to those members.

Here are the documented results from Joan Stroud, the CU’s Marketing Manager:

  • The CU presented 2,945 targeted offers to non-credit cardholders for a new credit card via banners in their eStatements. 57 new credit card accounts were opened (1.94% response rate) with a total approved credit limit of $500,000. This targeted offer resulted in total outstanding balances of $275,000 in two months.
  • Over a three-month period, 8,713 members received targeted offers on their eStatements for new car loans. 117 members accepted the offer (1.45%), resulting in $2.3 million in loans. (Get the details at http://www.digitalmailer.com/newslettervol1iss6.html)
  • As a result of targeting 890 members earlier in 2001, 13 new credit card accounts (1.46%) with a total limit of $83,250 were opened. In addition, 7.65% of these members opened another service after accepting the credit card.

The Secret is Out

While all eStatement products should provide a CU with cost saving opportunities, only targeted marketing eStatements can put the right offer in front of the right member at the right time.

Joan Stroud explains it this way,

"Each month DigitalMailer’s eStatement program saves NWFCU $8,900 in statement costs and puts 44,130 marketing offers in front of my eStatement members. Last year the CU saved over $80,000; however, the cost-savings pale in comparison to the substantial opportunity for increasing revenue by cross-selling our products and services."

Test Drive our Targeted eStatement Approach Today

While standard electronic statement presentment provides limited opportunities for cross-selling loans and other credit union financial products, targeted marketing eStatements give credit unions possibly the ultimate loan-generation tool. Whichever approach a CU takes for eStatements, choosing the right eStatement provider is an important strategic decision. To help CU's gather all the information to make an informed decision, DigitalMailer has compiled a comprehensive resource that reveals proven and tested cost-saving and targeted marketing eStatement strategies. CU Executives can receive a FREE copy of our eStatement Executive Briefing Report: 71 Strategies and Tips for Successful and Profitable eStatement Implementation, by registering at: http://www.digitalmailer.com/briefing.html

DigitalMailer, Inc. is an eStatement provider that assists our clients in gaining a strategic business advantage over competitors via electronic statements, newsletters and e-mail marketing campaigns. Our eStatement products are designed by CU professionals to reduce operating expenses, enhance cross-selling opportunities and increase revenue for our clients by getting the right offer in front of the right member. For more information on DigitalMailer, Inc. please go to http://www.digitalmailer.com

To subscribe to our e-newsletter that shares resources, industry trends, best practices and valuable lessons learned from CU's and financial service providers, click on the link below:
http://www.digitalmailer.com/newslettervol1iss6.html

Contact Information:

Ron Daly
rdaly@digitalmailer.com
Eric Ruth
eruth@digitalmailer.com

Toll Free (866) 994-4900
(703) 733-0339

© 2002 DMI

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 ads@creditunions.com or 1-800-446-7453.

 

March 11, 2002


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