HUTCHINSON, Kan.-Having raised nearly $400,000 for the city of Hutchinson since 1997, Hutchinson CU is preparing a slight revamp to its affinity card program after usage has dipped in recent years.
Casey Swarts, VP of marketing and remote delivery at the 17,000-member credit union, explained that the Hutch Card was launched as a way to earn extra revenue for the credit union while also increasing community involvement and visibility in a way that gave back to the city.
Each year the credit union gives the city $5 per active cardholder (paid for by HCU, not the member), as well as half a percent of interchange income on purchases made with the Visa card. The money goes to the city's parks and zoo, rather than the general budget.
"One of the things that has happened over the years is that rewards programs have come into their own, so this year we're completely revamping our card program," said Swarts.
The Hutch Card currently has 900 users. At its peak, about 1,400 members carried the card.
The original terms with the city will not change, but Hutchinson Credit Union will also give cardholders one-quarter percent back on every purchase beginning in Q2 or Q3 of this year.
"We're going to try to reinvigorate the program in this era of reward cards so that it's not just good for the city but also for the cardholder," he said.
One other reason HCU keeps the Hutch Card simple is that the city does much of the marketing, advertising the card on posters around town and even occasionally placing applications in city water bills. The rate on the card has always been 12.9%.
"With affinity cards, that affinity partner has to be able to know the card very quickly to say something about it," explained Swarts. "If we make it too complex, we're shooting ourselves in the foot." Laypersons-not just FSRs-need to be able to explain and sell the card quickly to the public.
Less Altruism
Swarts added that consumer attitudes have led to the card being somewhat dormant in recent years. "Consumers are a little less altruistic, and that's what this particular card is all about."
But the city has also cut back its marketing efforts over the past few years and accumulated the funds from the card.
"Rather than have a big project every year or two ... they're going to spend it on a big addition to the bike trails," said Swarts. "We have no imput on what the projects are going to be, and if they're accumulating the dollars over time, from a marketing standpoint it makes it a bit harder for me to get people excited."
Swarts recommended affinity programs for any CU hoping to grow their profile and get involved with the community. Hutchinson CU was a $45-million shop when the card was launched; today it is more than four times that size.
