2006 3rd Quarter:

How One Credit Union Reversed Member Attrition & Boosted Deposits

Each quarter, Delivering Value brings you case studies that demonstrate how clients are improving business performance using Harland solutions. This quarter, we spotlight a credit union in the upper Midwestern United States with nearly $100 million in assets and 800,000 members. The credit union turned to us to help analyze its current situation and to achieve several keys business objectives.

Situation

After losing 600 members over a one-year period, the credit union wanted to reverse the trend in member attrition, grow deposits and increase cross-sell of products to new members.

Solution

A comprehensive marketing assessment was completed using MCIF member data, as well as external research and peer-to-peer analysis. Using the data, a multifaceted marketing plan was developed to achieve the credit union’s business objectives. The marketing plan focused on three key initiatives:

  1. An advertising campaign, including radio and outdoor billboards, targeting new members and reinforcing current members’ loyalty to the credit union;
  2. A matrix mailing program to communicate with new members three times within their first 120 days of membership and to promote additional products and services; and
  3. A direct mail campaign targeting the top existing depositors.

Results

The credit union successfully achieved its business objectives. It turned the 600-member loss into a net gain of 423 members in the 12 months following the launch of the marketing plan. Over a three-month period, the new member matrix mailings achieved response rates of 26.67 percent, 22.39 percent, and 7.69 percent respectively, resulting in 55 new accounts and initial new deposits of $284,312. The targeted top depositor direct mail promotion generated a response rate of 16.33 percent, resulting in 265 new deposit accounts opened with balances of $2,604,121.