WINSTON-SALEM, N.C.-Break-ups aren't always a bad thing.
That's what Members CU here learned during October when its "Break Up With Your Bank" campaign increased membership by 83% over the previous month.
Members Credit Union opened 322 new checking accounts during October, 170 of which were new memberships. New member enrollment was up by nearly 10% for October 2011 compared to October 2010, and was a 19% improvement over the previous month. Members CU serves more than 50,000 members with nearly $233 million in assets.
"The fees [from the big banks] that were being presented in the media definitely gave us an opportunity, and the 'Break Up With Your Bank' campaign...just hit the right note," said Carla Kimmel, PR director at the CU.
The credit union ran ads in local newspapers and on its website, including comparing its rates with a pair of local banks (though the banks were not identified by name).
"Checking accounts are a great opportunity," said Kimmel. "When someone uses you as their PFI, they trust you a little bit more than just keeping their savings account with you. That's someone who is a good potential loan candidate and someone you can build a future on."
90-Day On-Boarding Program
Once new members join, Kimmel said that Members reps embark on a 90-day campaign to onboard members and put them into as many products as possible. The credit union is focusing on auto loans with its most recent membership influx.
As of its September 2011 Call Report, Members CU had just under 20,000 loans and leases, totaling more than $91 million. That number includes more than 6,600 auto loans totaling $57.8 million. The credit union is "Well Capitalized" at 9.46%.
Despite the slew of new members, Kimmel said MCU was not changing its approach to Bank Transfer Day. The credit union opened its doors to new members and new accounts, with breakfast food for guests and plenty of staff on hand "to answer questions and be there for people who want to make the switch."
Kimmel credited frontline staff with transitioning new members from checking account-holders to more profitable members.
"You can hand the new member so many marketing packets, but at the end of the day it's that personal, one-on-one connection" that makes the difference, said Kimmel. "Our frontline staff have drunk the Kool-Aid...they really understand that the only reason we're here is to serve our members."
