SAN ANGELO, TEXAS-Members doubled their spending-and transactions tripled-after Concho Educators FCU here offered an online and mobile debit rewards program in September.
"I like that members are being rewarded by spending with our debit card rather than being nickel-and-dimed at another financial institution," said Bianca Terrazas, branch manager at the $64-million Concho Educators FCU.
The 500 CEFCU members using the BuzzBanking Rewards program are also stimulating lending activity, suggested Jay Valanju, CEO, fisoc, Inc., the Austin, Texas-based company that provides the program.
"BuzzBanking drives loan demand significantly," Valanju explained. "Just in the first month, we drove a handful of new auto loans to Concho Educators." fisoc declined to share loan volume metrics related to BuzzBanking.
Every dollar spent earns the member one point; dollars spent at participating merchants earn multiple points. Connecting to Facebook or signing up for e-statements scores additional points.
Members can redeem points for gift cards from hundreds of national merchants and, soon, from local merchants.
"BuzzBanking inspires loyalty," Terrazas said. "And we can increase our interchange income and loan revenue."
Facebook is partially responsible for the buzz surrounding CEFCU BuzzBanking, Valanju continued. BuzzBanking is built on a social networking component, allowing members to earn points just for connecting their BuzzBanking account to Facebook. On Fridays, BuzzBanking posts a rewards tally to each members' Facebook page.
"Members who aren't part of the program see the BuzzBanking posts on Facebook and ask us how they can get the points, too," Terrazas said.
Scrolling Facebook For Prospects
BuzzBanking software sifts through members' social media posts to identify members who are interested in a new loan. The member then automatically receives an alert or e-mail with a targeted, preapproved loan product.
"BuzzBanking identified a member on Facebook who was looking for a new car," said Terrazas. "We contacted her and offered a lower interest rate and 5,000 rewards points. She took the loan and asked how she could close her account at Chase."
BuzzBanking adds a "tremendous amount to a credit union's online persona," said Valanju. "Members come back to the credit union website a few times per week to engage with the rewards platform, which presents a credit union the opportunity to maintain that interaction with the member."
The BuzzBanking iPhone app allows members to redeem points on the go, Valanju continued. "Click a button to see a map of local merchants where you can earn double points. Or hold your phone to the horizon, and it will use augmented reality technology to overlay participating merchants onto a map of places around you.
fisoc is also the marketing team that Concho Educators never had, Terrazas said. BuzzBanking generates sales campaigns for direct mail and statements in addition to Facebook and e-mail.
fisoc pairs the CU with an account manager, integrates the rewards platform with the CU's core system and customizes all marketing campaigns, said Valanju.
Members can click from the CEFCU website to set up a BuzzBanking account. The process automatically links the member's debit card to the rewards program. Single sign-on to BuzzBanking through an Internet banking platform is supported, although CEFCU is keeping the sites separate.
The 7,000-member CU pays a monthly fee to fisoc only if the rewards program is profitable, said Valanju.
