NORTH HAVEN, Conn.-It's more effective to show people what they can save at the credit union rather than tell them about it.
That logic led Connex CU to develop its Savings Analysis tool that is connecting with members at a 23% clip-almost one-third of those who are exposed to the tool refinance at Connex and save money. The Savings Analysis is a program whereby the credit union takes some quick facts from members on their current loan and financial situation and then spits back on paper or over a PC the exact amount the credit union can save them by getting rid of their current higher-rate loans.
"Match that result against what you typically get from a direct mail or marketing campaign, where 2% to 10% is considered successful," said Tansley Stearns, VP of sales and service.
Why the tool is working so well, according to Stearns, is because the $360-million credit union is putting something in front of the member rather than just telling them how much they can save.
"I was out in the lobby one day and I noticed staff were saying the right things to members but not getting them to take action. And it was pretty impressive information, saying we could save them hundreds if not thousands of dollars," said Stearns. "But the message was not really sinking in. Members were still saying they had to think about it. So I thought maybe giving members something visual, see in black and white how much they can save."
525 Members Participate
The Savings Analysis tool is available in branches, working with a teller, or a member can go online and receive the information themselves. Since the tool's inception in late 2010, 2,300 Savings Analysis forms were distributed to members, with 525 members completing it and receiving a Savings Snapshot in return.
"With a few simple and easily accessible pieces of information about the consumer's loan from another financial institution-current balance, payment amount, interest rate, etc.-our staff then gets to crunching the numbers and presenting options for either lowering their monthly payment amount, reducing the overall interest paid over the course of the loan, or ideally, both," said Stearns. "We present this Savings Snapshot to members, complete with savings totals."
That makes it harder to walk away, said Stearns. "Especially when they see Connex could save them tens of thousands of dollars on their mortgage. In instances where the person was still insistent on thinking about it or turned down the opportunity, it was much easier to overcome their objections when money was staring them in the face."
For the last two years Connex has sought to significantly grow mortgage and loan volume. The Savings Analysis tool has helped drive loan demand, added Stearns. The most successful loan promotion connected to the Savings Analysis is a 10-year mortgage refinance special (see related
