CU's Successful Loan Promo Incorporated Into Solution

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Marketing agencies typically are retained to sell software solutions. But one software company, after seeing how successful a loan promotion went for Philadelphia FCU, is now incorporating aspects of the campaign into its own solution.

What put this into motion: a "matrix research project" by Cuadpro Marketing, Los Angeles, for Philadelphia FCU that increased loan volume by $10 million in six months captured the attention of the CU's software provider, who now plans to add key components to its own marketing product.

Marquis Software, Plano, Texas, which provides the $500-million PFCU and other financial institutions with tools to enhance member penetration, was so impressed with its client's use of the research that it decided utilize components for an "enhanced" version of its already successful CampaignPro software, said Jay Kassing, President of Sales and Marketing at Marquis.

"Philadelphia FCU is not our biggest client, by far, yet they used and executed this strategy and did it effectively," Kassing said, explaining that while not a new concept, matrix marketing is complicated and tedious. He said many would agree that many major financial institutions wouldn't bother trying it.

Manuel Solano, President of Cuadpro, said his team spent six months analyzing data from the CU's member database to determine members financial habits based on age, demographics and other variables such as which branch they used most often.

"Philadelphia FCU wanted to do a mailing to new members based on membership behavior," Solano said. "So we started with a complete analysis to see what kinds of product behaviors members from the previous year were showing"

For example, "We were looking for look-alikes to see if there was a group out there based on age or demographics that had checking accounts, money markets and auto loans," he said.

Using Cuadpro's data, Marquis enhanced its marketing software program, which allowed the marketing team at PFCU to click a few computer keys to send out eight direct mail pieces to new members themed, "Who Wouldn't Want More Money!"

Solano said he was pleased to see his team's research put to such good use by Marquis and was happy that more credit unions would have access to this successful program as a result.

After six months, he said, PFCU reported an increase in loan volume to $18 million from $8 million the previous year.

"Before this, they were offering everybody a checking account no matter where they lived or what their CU habits were," he said. "Through our research, they learned that there was no reason to even offer people in specific underserved areas checking accounts or auto loans because they couldn't afford them."

Instead, he said, those people get monthly direct mail pieces that encourage saving and offer educational resources.

Marquis gave PFCU its annual "Our of the Box" award, which recognizes a client who displays an unpredictable, ambitious, and effective use of a Marquis product.

Mary Posluszny, marketing manager at PFCU, said the yearlong campaign that started last June was so favorable that plans are under way to launch a second campaign using its enhanced Marquis tools.

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