CHARLOTTE, N.C.-Charlotte Metro CU here saw a nearly 50% increase in product openings after launching a direct mail campaign targeting specific demographics in its membership area.
The campaign was tied to the 37,000-member, $285-million credit union's 50th anniversary, and stressed its strength and longevity. CMCU narrowed its marketing focus by sending postcards to existing members who did not have a checking account at Charlotte Metro, Gen Y/Millennials who were not members, and Gen X/Baby Boomers who were not members.
Overall, Charlotte Metro saw a 48.6% increase in product openings during the first three quarters of 2012. Comparing Q1-Q3 2011 with the same period of 2012, CMCU saw a 44% increase in savings accounts (the base account required for membership), a 24.6% rise in checking accounts, a 7.6% increase in its platinum credit card, a 5% lift on auto loans and a 4.3% uptick in CDs. Those figures represent both new memberships and existing members increasing their relationships with the credit union. Charlotte Metro added 9,000 new members during 2012, a 50% increase over the average year. Its overall loan portfolio grew by 10%, net worth rose by 14%, and market share rose by more than 10%.
Tracking The Campaign
Charlotte Metro officials acknowledged awareness campaigns are more difficult to track than product-specific campaigns, but the CU saw a 53 basis point response rate from non-members that it was able to match to a specific address.
Many credit unions have reduced-if not abandoned-their direct mail efforts, but Randall Beckwith, CMCU's marketing specialist, pointed out that direct mail was the best format for the kind of messaging the credit union was trying to convey with this campaign.
"We wanted to set the tone with a little bit of a story, and we knew that on a direct mail piece we could tell a bit more of a story," said Beckwith. "I think an email promotion is good because it has an element of immediacy, but if you have a bigger story to tell and can't get people to jump from an email to a landing page, direct mail is a great way to do it, because it says 'I have an important message to tell, and you can read it at your convenience.'" The post cards used words and images targeted to each particular demographic, rather than a blanket message that would be applicable to everyone.
3 Mailings
The credit union's market analyst picked demographics and geographic areas to focus on, and the CU sent three mailings to each address. Beckwith pointed out that it can take up to nine impressions before a consumer reaches a buying point, "so if we don't do a complete mix of these campaigns and do more than one medium, there may be someone we miss. I think those credit unions finding direct mail ineffective may only be using one tool or sending one mailing." Charlotte Metro regularly sends email blasts along with direct mail when running campaigns.
Due to the campaign's launch on the heels of Bank Transfer Day, Beckwith said that Charlotte Metro may have benefitted somewhat from having the right message at the right time. But this was the CU's first time being in the market all year with the same message, "and that led to a tremendous uptick in growth," said Beckwith. The CU is planning a similar yearlong run in 2013 that it planned to kick off with an ad during the Super Bowl.
