Credit unions often focus on offers designed to attract new members — but what have you done lately to engage and reward your loyal and valued members?
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With increased competition in the financial marketplace, offering enticing incentives to your existing membership can benefit members as well as your credit union. By leveraging data that shows member spending habits both within and beyond your credit union, you can target members for incentives that will make your credit union stand out from the competition!
An Offer Members Couldn’t Refuse
Targeting existing members was the key to the successful auto loan transfer campaign offered by Bayer Heritage FCU, headquartered in Proctor, WV with branches in five states.
By identifying existing members who had auto loans financed at other institutions, Bayer Heritage could offer a lower rate to their members. Not only did the members who made the switch benefit from the lower interest rate on their car loan, but also Bayer Heritage FCU was able to attract 1,150 new auto loans during the campaign period and significantly increase its auto lending portfolio.
Best of all, the campaign paid for itself in just one month.
Big Data + Targeted Campaign = Connecting With Members
Too often we hear about negative news associated with data such as breaches or fraud. However, data more often is used for good – it can be used to create personas and profiles that credit unions use to tailor campaigns to the members most likely to have interest in a relevant offer.
That’s just what Bayer Heritage FCU did. With a simple letter and a list generated by leveraging data, Bayer Heritage FCU could reach current members that met the following criteria:
- Members aged 21+
- Had an auto loan balance of $5,000 or more at another financial institution
- Did not have any history of bankruptcy
- Had a FICO of 660 or higher
- Did not have any history of repossessions or charge offs
The results of the campaign speak for themselves. Bayer Heritage FCU experienced a 50% increase in auto lending, earning $43 for every marketing dollar spent.