LOS ANGELES-Farmers Insurance Group FCU is inviting members to go online and claim more than $1 million in annual loyalty rewards, and in the process is cross selling to deepen relationships.
In the first two weeks of the Membership Bonus Program, mobile banking signups are up 300% compared with weekly averages this year, enrollment for credit card e-statements has risen 760%, and members taking end-of-month e-statements have increased 800%.
In a unique approach to the yearly giveback, Farmers has set up a page on its website where members log in and claim a membership bonus based on relationships. Once members log in, the application recognizes the individual, knows the products and services each member has and does not have, reveals the award, and then lets members know how much more money they can get back if they take more relationships.
Members get their initial payback deposited into their share account within seven to 10 days of logging into the redemption page, and then are paid January 31 for any other services taken.
"This new giveback comes on the heels of us working hard the last few years to ramp up member activity and deepen relationships," said CEO Mark Herter. "We have been educating staff to cross sell, cross sell, cross sell."
The CEO, too, says this approach is far better than just giving back $50 to each member at the turn of the year, and is aimed at getting members to pay more attention to the giveback and understand the value the credit union provides.
"We did the year-end giveback about 10 years ago. People got the money in their account and barely recognized it. We want to spend our money wisely and get more activity out of our membership this way."
How Members Were Notified
Members were notified of the offer via e-mail and postcards and Farmers has been promoting the bonus via in-branch and electronic media. Marketing Specialist Ricardo Javaroni explained the CU is paying a bonus on numerous product and service relationships: $5 for each checking account, direct deposit ($20), mobile banking ($2), e-statements ($5), and bill pay ($2).
"Loans are where members get the most money back," said Javaroni. "We return 3% of their total interest paid this year, from January 1 through July 31. We are also giving out $50 for each new loan opened before December 31."
There is no limit to the amount a member gets back, explained Javaroni, saying the highest bonus he has seen so far is $2,200-someone with commercial loans.
Marketing Supervisor Sheila Tetangco said that while the bonus promotion is expected to give back more than $1 million, over
all the credit union will have returned more than $1.5 million throughout the entire year. "We have been giving back since January, not just through lower loan rates (new auto 1.49% APR) and higher deposit rates (one-year CD .60%), we gave, for example, a 2% upfront rebate on auto loans this summer and a 1% upfront rebate on commercial loans to Farmers Insurance agents."
