SAN JOSE, Calif.-A sophisticated on-boarding program is turning new members into profitable ones at Meriwest CU.
The $1.3-billion credit union sends "eWelcome" e-mails to new members, followed by additional e-mail contacts at staged intervals.
Launched in May of 2009, the effort has boosted Meriwest checking penetration by 7% and deposits by 11%, while online banking has jumped 7% and e-statements have increased by 5%, according to VP-marketing Tony Cortez. "We have been very pleased with the program."
The follow-up e-mails highlight electronic services such as online banking, bill pay, and direct deposit, as well as core products that members may not have previously selected. At the 30-, 60-, and 90-day marks, specific targeted marketing is done through e-mails. Cortez said that at 30 days, if new members don't have a checking account, they will receive communication highlighting checking services available.
If the member has a checking account, an alternative e-mail suggests payroll direct deposit. At 60 days, Cortez said, the Auto Lending and P.A.S.S. (Personal Auto Shopping Service) is emphasized. At the 90-day point in the membership, Meriwest shares the credit union's Homeowner Advantage program and highlights home purchase loans and real estate refinancing.
'It Is No Secret...'
"It is no secret that members utilizing multiple products and services have a much stronger relationship with their credit union than single-service members," said Cortez.
They key, insisted Cortez, is using the credit union's CRM tool to carefully target the offers to meet members' needs, and walking a fine line between providing a needed service and becoming intrusive.
"It's a balancing act that we pay attention to all the time," said Cortez. "You do not want members to perceive your messages as SPAM. We do not want to overstep our boundaries and overlook the fact that our members are allowing us to communicate with them on a regular basis."
To avoid that issue, the CU not only relies on its CRM tool, but messages that are crafted to make sure they do not seem like blanket e-mails. "We always want these messages to seem like a personal letter from the credit union to help the member, and not a solicitation."
Cortez added that the messages all have a similar look and feel so the member clearly identifies them with the credit union and becomes accustomed to receiving them. "We want them to know what this is as soon as they open the message," Cortez explained.
Cost Is Measured in Time
Costs for the program are simply the credit union's time to generate the messages, which is handled automatically with a little human guidance. "We have a person responsible for managing this program," Cortez said. "The employee makes the CRM queries and assembles the mailing lists."
The messages are meant to open the door to new offers, and hyperlinks take members to the credit union's website for more information. Meriwest also makes sure that links are clearly present to allow members to opt out of the program.
"Not many have done that so far," Cortez said. "I'd say the percentage of those asking us to stop the messages is in the single digits."
