NAPANOCH, N.Y.-Syphr LLC, a marketing CUSO jointly owned by Eastern New York FCU, Equidata Inc. and Innovative Software Solutions, is beta-testing a lead-generation product for CUs.
RateMatch utilizes the company's patent-pending rate discovery technology on the sites that sell credit reports to consumers to source potential loan and new member prospects among the approximately 175,000 consumers who purchase a credit report each month. RateMatch links these consumers with a credit union following the purchase of a credit report.
"When they purchase their credit report it matches them up with a credit union," explained Chris Langley, president of both Syphr LLC and Eastern New York Financial Credit Union. "A report shows them how much they can save if there's a match, if they agree to be contacted by the credit union."
More than 175,000 potential prospects per month are targeted and sold loan products through the RateMatch network, Langley said.
"RateMatch offers credit unions a strategic advantage by putting them squarely in the first-mover position on sites that sell credit reports to consumers," Langley said. "RateMatch gives credit unions an exclusive opportunity to engage motivated and previously untapped borrowers early in the buy cycle and, by capitalizing critical knowledge of the buy cycle, allows them to convert prospects into new members."
Syphr's solutions give CUs the opportunity to reach prospective members through effective web-based channels, Langley explained. RateMatch uses the cost-per-acquisition model of Internet advertising as a way to offer CUs a low-risk advertising distribution system for generating qualified sales leads and new member prospects, he added.
"We're still working on the cost, but right now it would be $35 per lead," Langley said.
The company expects to launch RateMatch in April. "The focus groups have been almost universally positive," Langley said, of the response to the product so far. "It's really a cost-effective solution."
Langley said that Syphr's product is distinctive from other lead-generation products. "Our model doesn't do the bait-and-switch method," he noted.
The other distinction is the pricing, he said, stressing that credit unions are only charged per click. "When you compare that with others, it's really pretty cost-effective."
He noted he's expecting CUs to report a high ROI when using this product, because of several reasons.
First, it will increase lending without the advertising expenses, he said. Second, he said, low cost-per-clicks is significantly less expensive compared to conventional advertising, or cost-per-click marketing that charges a fee regardless of success. Third, there is no additional staff or IT required.
"RateMatch membership includes a secure Web admin section for you to modify your products and pricing and apply search filters to your listing criteria," he explained. "Additionally you have access to your loan pricing comparisons via a secure interface."
At present, there are eight credit unions beta-testing the RateMatch. "Right now we are testing out the engine," he said. "Ideally, we're shooting for about 25 to be in beta by April."
