La Habra, Calif.—By adopting a NEW member acquisition strategy, American First CU increased many key metrics, including doubling the number of new checking accounts opened in branches.
The CU was looking to attract members who would make American First their primary financial institution, which is why AFCU honed in on checking accounts, according to Theresa Davy, American First COO.
Over a 12-month period, American First CU attracted 879 more retail checking members than the same period in 2013. As a result, the $500 million-asset CU averaged 11.36 new retail checking members per branch per week—a stunning 98% increase.
American First CU worked with Lincoln, Neb.-based Haberfeld Associates, implementing its "Member Acquisition and Growth Strategy" last year. The firm’s Executive Consultant Jack Farnham said the offering is often a big change from "business as usual" for most credit unions.
"Sometimes the staff can be hesitant to fully embrace the change until they see the results," said Walburn.
Since partnering with Haberfeld Associates, American First, with 37,333 members, 125 employees and three branches, has gained $2.22 in loans for every $1 in deposits in new checking households. Total retail loan volume growth from households with a new member checking account has totaled $12 million, according to Davy.
The First Step
"The first step was to critically examine American First CU's products to ensure there was something for each major market segment that would provide a marketing advantage," she said. "At the same time, American First CU reviewed its policies to remove barriers to capturing the prospective member."
To ensure adoption rates will continue to increase, American First CU designed a sales process that allowed front-line employees to "quickly and confidently" suggest the right account for the prospect.
"The credit union's staff was trained on the new products, policies and processes immediately before the marketing started. The marketing consisted of a series of direct mail campaigns in conjunction with the use of banners, in-branch merchandising and a member referral program," said Davy. "Back-office associates participated in training so that everyone in the credit union was familiar with the program."
