MIAMISBURG, Ohio-To cross sell and retain members, a credit union must first have an offer that gets attention.
That's the philosophy at River Valley CU, which has rolled out a high-yield checking account that is turning the heads of new members, according to CEO John Bowen, who added that front-line staff incentives have been adjusted, as well.
"We are having success with cross-selling High Interest Checking, especially with members who have joined through an indirect auto loan," said Bowen.
Indirect loans played a large role in the credit union increasing net new members by 13% last year. Bowen explained that cross-selling members who joined for the new checking account is not as great a concern, since the account is sticky.
High Interest Checking paid 4.5% APY at press time and requires members to perform 12 debit transactions per month and take direct deposit. The no-minimum balance account pays the high rate on the first $25,000, and then 1% on the balance above that ceiling. Kicked off in March of 2009, the account has lifted checking deposits from $18 million to $35 million.
The $172-million River Valley has also made cross-selling incentives more robust, but also altered the program.
"We have kicked up the incentive program to be around 3% to 5% of an employee's base salary," Bowen said. Previously, incentives were not based on salary and were cash awards for moving specific products.
"Now employees have to do more, sell a certain number of CDs, a certain number of checking accounts, and provide business contacts, for example. Just as we have to get members' attention with exciting products to cross sell, we have to motivate employees."
