Data + Incentives = New Members, Deposits

WICHITA FALLS, Texas — Daily data-and employee incentives-helped $81-million Texoma Community Credit Union here grow new checking accounts by nearly 25% in 18 months.

Meanwhile, monthly data-combined with incentives to members-helped $70-million FINANCIALbuilders FCU in Kokoma, Ind., recruit and retain a net total of 240 members and capture $72,000 in deposits during second quarter 2009.

"The success of our sales and service culture wouldn't be possible without our MCIF and CRM software," suggested Mike Segaloff, marketing director, Texoma. "A year ago, we were trying to do referrals by passing index cards, sticky notes and voicemails between employees."

Now, Texoma uses an automated referral and incentive program integrated with a CRM system that has built-in MCIF, all operated in-house and provided by Plano, Texas-based Marquis, an MCIF/CRM software provider and consultant.

"We know our member's lifestyle, what they want and what they've called us about the last few times because we track every touch point and interaction," explained Segaloff. "And if a member walks away with five new products, the employee and the referral both get paid an incentive for all five. CRM has helped employees be focused like a laser beam on growing members and deposits. Some of the results are unbelievable."

One result that may be hard to believe is the motivation of some Texoma employees: some earn as much as 50% of their gross pay in incentives, Segaloff said.

And then there's Texoma's campaign to grow IRAs. The number of accounts has grown by 24% in the past 18 months, or about 44% in total dollar amount, he said.

"That's exactly the type of program that's in keeping with the spirit of this economy and that ties the member to the organization," said Jay Kassing, president, Marquis.

Meanwhile, new checking accounts increased by 25% in the past 18 months-nearly 19% in aggregate dollars, said Segaloff. Specifically, a bundled e-checking product grew by 169% in its first year and by another 25% in the past six months.

FINANCIALbuilders FCU is using Marquis to understand and segment its members, who have fallen prey to unemployment and dwindling buyout cash within the automobile industry, said Judy Drinkard, VP-marketing.

"Our objective is to retain members and help them get through these tough times," she said. "The Marquis segmentation strategies help us understand what products and services will work for members."

"Clients can also segment the membership for loss mitigation purposes and to recalibrate loan payments," added Kassing.

"We're asking members what they can pay on a loan so we don't have to charge it off," Drinkard continued. "Our members have taken the auto buyout-money, spent it and still don't have jobs." As a Marquis service-bureau client, Drinkard said Marquis quickly produces reports that fit her marketing strategy, such as identifying members who had a checking account and may want to take on a debt consolidation loan. The CU also recently purchased a mail list from Marquis that helped recruit 80 new members from a neighboring county.

FINANCIALbuilders completed a "Friends and Family" campaign during Q2 2009, wherein it paid members $25 if they referred a new member, who also got $25.

The mail list and segmentation strategies helped the CU recruit 312 new members. In the same period, the CU lost 72 members, but grew deposits by $72,000 and loans by $60,000, she said.

"Sales and marketing strategy starts with member data, which we can pull from every relevant system at a credit union," said Kassing. "We identify demographics and life-stage, and then through segmentation and analytics, help capitalize on the best opportunities in the marketplace."

Both FINANCIALbuilders and Texoma use Marquis reports for on-boarding programs. "We look for situations where we might offer a better rate or product, and call members systematically to switch," said Kevin Scott, operations manager, Texoma.

Texoma's previous MCIF looked good and was expensive but could only cough up costly reports, said Segaloff. Marquis delivers similar reports at a better price, along with strategic suggestions-and CRM technology to implement the suggestions, he said.