PLAQUEMINE, La.-Dow Louisiana FCU has seen strong loan growth thanks to a sales culture based around what one executive calls "revolutionary service."
In 2011 DLFCU saw its member loans increase by 14%, while commercial loans grew by 20%, with the latter pushing Dow Louisiana up against the MBL cap. For its strong loan performance and more, Dow Louisiana has been recognized with a Crystal Performance Award from Raddon Financial Group. This is the second consecutive time DLFCU has been recognized with a Crystal Award.
"To be revolutionary, which we deem as the highest level of service, you have to be a service-oriented individual AND a sales-oriented individual," explained Herman Stevenson, Jr., VP-operations at the $250-million, 22,000-member credit union. "Something we've witnessed over the years is that many people who work in credit unions have a service mentality; that's part of the DNA of a credit union. But what we've tried to do is say that unless you develop sales skills, then you're not servicing that member to your utmost ability."
That revolutionary service starts with 20 hours of training, four hours per day for five days, along with a four-hour, semi-annual refresher course. The lessons include the basics of sales, tips on closing, getting commitments, building rapport with members, cross-selling, indirect sales, cold calling and more. "The individuals who can't get their mind around being sales people usually don't hang around," added Stevenson.
Cash Incentives Paid
"From the minute they're hired, they're going through intensive training," said Allison Rogers, VP of marketing.
Along with that training comes steep goals and rewards for meeting and exceeding goals. DLFCU pays cash incentives on a monthly basis, with each branch getting a pool amount and the lender with the highest loan volume receiving the highest percentage of the pool.
"It encourages people who want to pull their share, because if you don't pull your share, you don't get the fat of the land," said Stevenson. Some of the growth in lending has also come from picking up on loans turned down by the banks because of newer, stricter lending standards. A more stable housing market in Louisiana has also helped keep Dow Louisiana's mortgage business stable.
While the focus lately has been on cross-selling and growing wallet share, DLFCU has also boosted its fee income through mortgage loan servicing fees and high opt-in on NSF courtesy pay. "We went after the members who used it the most, and we have a 94% opt-in rate on that," said Rogers.
Help From New Orleans Saints
Both Rogers and Stevenson said that Dow Louisiana has not struggled with an influx of deposits to the extent that other CUs have, but it was still dealing with cash inflows.
"We do have high depositors and our clientele is viewed as somewhat upscale, so we do see that, we do experience it," said Rogers. "It may not be as severe as other credit unions, but we just push the cross sale to get the money out of here."
DLFCU's membership numbers have stayed steady in recent years, and Rodgers pointed out that Bank Transfer Day was essentially a non-factor because the big banks have a limited presence in its market.
Credit unions interested in replicating some of DLFCU's success should be willing to reexamine their retail strategies, said Rogers, pointing out that the credit union ran a membership campaign with New Orleans Saints player Randall Gay. The spot appealed to would-be members because Gay is "a local hometown hero" and allowed the credit union to show itself in a different light and attract community members it might not otherwise have reached, Rogers said.
"Don't think traditional and don't limit yourself to only what you know," said Rogers. "Push your vendors to be innovative or look for new vendors, and come up with different ways you can appeal to an audience without a big budget."
