United San Antonio Community Federal Credit Union has seen its cardholder base grow by 58%, to 3,250 from 2,049, and card balances have increased 89%, to $12.3 million from $6.5 million, since the credit union began in-branch marketing with TNB Card Services Inc. at its six branches in 2007.
Using the branch as a sales channel for card acquisition costs between $20 and $50 per cardholder compared with between $90 and $110 for direct-mail offers, Mark Fenner, TNB senior vice president, tells PaymentsSource. TNB provides clients consulting and branch-marketing kits, which include posters, tent cards, buttons for employees to wear and member giveaways. TNB did not disclose fees but says it determines them based on what the company does to support the credit union client’s in-branch efforts, such as creating the customized training, managing the incentives and the promotion and creating the promotion themed marketing materials.
TNB tries to make it fun for the employees to promote the credit union’s credit cards by using incentives and management recognition. “We encourage the CEO of the credit union to get involved and track performance to make it fun and get employees talking about the cards,” says Fenner. “Staff likes success, and they talk about it more the more customers sign up for cards.”
United San Antonio Community Federal Credit Union’s program includes employee incentives. “We make the card promotions fun for the employees,” says David Roque, the credit union’s vice president of operations, noting employee incentives have included San Antonio Spurs basketball tickets, an iPod Touch, a GPS system and a digital camera. “The promotions help keep employees focused and excited about signing up new accounts,” he says.
Analysts say in-branch marketing is sound but that financial institutions should use all channels for customer acquisition, including online and direct marketing. Ron Shevlin, senior analyst at Boston-based Aite Group, suggests that financial institutions still have more work to do with customer relationship management.
“Where smart institutions are focusing is at whatever the point of interaction is, whether it’s in-branch or online or a call center, to determine the need of customer,” says Shevlin. “I call it sense and respond marketing—sensing what the customer needs based on what their actions are and respond with the appropriate message.”
