FLOWOOD, Miss. — Experiencing a "shortness of paycheck?" Or perhaps you are suffering from "CARpal tunnel?"
Those diagnoses are just a few created by staff at Statewide FCU as part of a healthcare-themed, three-month promotion designed to improve its members' financial health. As part of the promotion, everyone from the CEO to tellers to loan offers dressed the part.
"Everyone wore scrubs," said Paul Armstrong, CEO of the $69-million credit union. "We got toy stethoscopes. We really got into it. Above all, we wanted to have fun with it."
The promotion paid off. The 15,200-member CU exceeded its goal by loaning more than $7.5 million during the promotional period that concluded in June, a 50% increase over the original goal of $5 million. The promotion included reduced interest rates on auto loans, credit cards and loan consolidation.
"We look at the current loan situation, and saw where we could say them money. Everyone in the country is experiencing some sort of financial ailment," Armstrong said. "Our promotion illustrated how a financial institution can contribute to members' financial heath by offering promotional rates on its loans, credit counseling and debt consolidation. We just happened to wear scrubs while doing it-which was fun and completely unique, and well received by our members."
Armstrong noted that the idea of the campaign "really went back to the end of January, when everyone got the famous letter from NCUA." "Interest rates went down," he said. "We couldn't really invest in anything in the economy.
So the next step was going to the CU's board. "We told them we could ride it out and not make a lot of loans, or come out guns blazing," Armstrong said.
With a net worth ratio of 8.5%, "The only good alternative we saw at this point was to make loans," he explained.
Armstrong noted that the financial health idea was not unique. "It came from a former boss," he said. "We took that idea and we ran with it."
The promotion took into consideration three factors. "One — the credit union had to make money," Armstrong said. "Two-we had members hurt by the economy. And the third group was our employees. Merit increases were cut in 2009, but nobody got laid off. So we had three entities to take care of." If the goal was met, the employees were to receive a "hefty bonus," Armstrong said.
The $5-million goal exceeded the CU's previous high during a lending promotion of $4 million. The three-month promo tied in a campaign from Credit Union 24 that featured a nurse holding a money bag to represent a newborn child, symbolizing the network's dedication to helping CUs better care for their members' money.
"Though we are not dealing with credit union members' health, the benefits they receive through participants' services create long-lasting financial health and well-being, transcending into a better overall quality of life," said Armstrong.
Avoiding expensive TV and newspaper advertising, Statewide FCU's marketing budget for the promotion of $5,000 instead when to the printing of fliers ($3,500) and to purchase scrubs and related novelty accessories ($1,500). SFCU is projecting ROI of $225,000 from loan interest for this year. "We think it was worth it," Armstrong said.
For other CUs hoping to do a unique campaign, Armstrong advised: "The best thing you can do is if you have the kernel of an idea, kind of run that around your management staff. And get with your staff members that are creative."
