MUSCLE SHOALS, Ala.-What can make a cash-back loan program perform even better? Let members talk about it.
The combination of money in hand and testimonials from members led Listerhill CU last year to beat results from a highly effective cash-back offer it ran in 2011. Its 2012 "So Can You" campaign pulled in nearly $105 million in new loans, 5.7% over its stretch goal and 15% more than its total for a campaign called "Just Move It."
Just Move It gave members who brought over a loan from another FI up to $200 cash back. Listerhill CU had a matrix of dollar amounts, ranging from $50 for a $5,000 loan, up to $200 for a $20,000 loan. So Can You offered the same incentives and threw in an extra $25 if a member referred someone else who then took out a loan.
Most important, said Director of Marketing Kristen Mashburn, was that with So Can You members were hearing about the offer from those who took advantage of the deal the previous year. Testimonials used members' names, for example: "Jessie saved. So can you."
"Cash back works, that's clear," said Mashburn. "People like to get a check in their hand when they close a loan. They like the immediacy of the reward. They like the fact it can help with some associated expenses, like tax on [a license plate for] a new car. But what we have found, they like the concept even more if their fellow members tell them about it."
Members In The Media
Members' faces were blanketed across the city with advertising that included TV, radio, billboard, branch signage, and digital. Members were featured in the areas closest to the branches they visit.
"This was a strong call to action and came across as genuine to our members," said Mashburn. "We had one member who took out a Just Move It loan, we put her in our So Can You ads that showed up near where she lives, and some people stopped in to the retail store she works at and asked for her autograph."
Last year loan officers also took Polaroid pictures of each member who took out a loan and got a check back, placing the photos on a wall inside the branch.
Listerhill created a lot of buzz, which Mashburn said would not have been as great had the credit union offered a percentage back on the loan amount instead of a set amount. "We don't think a percentage works as well. Our members like to know ahead of time what they are getting. They liked the simplicity."
Despite the success of Just Move It and So Can You, Mashburn said the $600-million credit union this year will do something different. "Last year was an exception, as we never like to run the same sort of promotion two years in a row. This year we'll start from scratch."
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