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CMBDC Best Practices: Business Development

CMBDC Best Practices: Business Development. Presented by: Diana Fisher VP Marketing/Business Development First Community Credit Union. The Original “Hungry Loan”. Available only to teachers who were new to two specific school districts Purpose behind name “Hungry Loan”

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CMBDC Best Practices: Business Development

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  1. CMBDC Best Practices:Business Development Presented by: Diana Fisher VP Marketing/Business Development First Community Credit Union

  2. The Original “Hungry Loan” • Available only to teachers who were new to two specific school districts • Purpose behind name “Hungry Loan” • Advertised with a flyer or brochure handed to attendees at the district New Teacher Orientation meeting • Loan guidelines • Member supplied a copy of their teaching contract • $500 loan / 12 month term (Loan amount had been increased once to $2000 / 24 months and then increased again to $2500 recently.)

  3. Revising the Program • Objective: Design a unique loan product and offer it to all teachers – not just newly hired • Rename product! Introduce it as a “Teacher Appreciation Loan” • Reward teachers for doing business with us and encourage them to open additional accounts • 3 incentive coupons included • Cementing relationship – requirements of loan • Savings and checking account required with Direct Deposit • Teacher contract still required

  4. Goals • Gain 100 new members with multiple account relationships during period of June – September 2005 • Open 200 new loans (in 2004 we made 28) • Increase overall awareness of credit union and penetration among sponsor school districts

  5. Summary of Strategy • Change loan offer to include all teachers with a 2005-2006 contract • Add more attractive incentive coupons for opening additional account relationships • Purchase mail list from surrounding eligible school districts (seven in all) and create a compelling direct mail offer • Promoted offer in person at school orientation events included inside a nice giveaway • Reduced risk of loan by requiring payment through Direct Deposit and a checking account relationship

  6. Advertising • Direct mailer • one design for new teachers • one design for existing teachers • Newsletter article/ad in school’s publication • Email flyer to school district which was forwarded to all teachers • FCCU website

  7. This is the teacher image we considered using…

  8. This is the image we chose!

  9. Costs • 5,850 direct mail pieces • Total cost: $4570.67 (.78 each) • $1348.33 (media/placement) • $3222.34 (production/printing)

  10. Results • 183 new members (83% over goal) • All opened a new savings, checking, $2500 loan and Direct Deposit • 479 total loans (139.5% over goal) • 553% increase over previous year/program offer • ROI = 41.75% • Additionally, 78 other new loans were made totaling $281,943. • Plus, 468 other accounts were opened for another $271,091. • Average services per HH = 3.74%

  11. How This Program Contributed to FCCU’s Success • New member growth • New loan growth • Increased awareness of credit union and services • Unique branding/positioning of credit union in meeting teacher’s needs • Increased average services and products per household for existing members

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