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The Future of CU*BASE Tiered Services

Tiered Services Development Focus Group

October 9, 2008

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Agenda

Tiered Services: Then and Now Tiered Services & the new GOLD Standard (sneak peek) A Look at Your Peers

Aggregating Tiered Services Statistics

Brainstorming Projects Already in the Pipeline Your Wish List

Member Rewards Collaborative Marketing Your Tiered Services Program What else is on your mind?

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Tiered Services: Then and Now

1997 Tiered Services relationship management project introduced! (March)

1998 Tiered Services points on member statements

1999 Participation messages on statements Rate benefits via automated Marketing Club enrollment

2000 Tiered Services Points Inquiry pop-up window introduced Cumulative Lifetime Points introduced Many adjustments/additions to the points configuration

2001 Tiered Services greeting in CU*@HOME

2002 Household Tiered scoring

2004

Customize name for the “basic” level Products Per Member/Services Per Member scoring configuration Points for e-statements and bill pay enrollment Courtesy Pay / separate points for negative balance checking accts “Omit from scoring for written-off loans” flag Separate points for AFT loan payments vs. all AFTs

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Tiered Services: Then and Now

2005

Linking Marketing Clubs to Lifetime Points accumulation (accumulate only for certain clubs, grant lifetime points upon Club enrollment)

Flag to populate lifetime points automatically or not Lifetime Points Catalog and redemption feature Separating config from maintenance

2006

New “Know Your Member” tool to display PPM / SPM from your TS scoring files “Drill Down” on Member Counts Forecasting enhancements (temporary new point values, using month-end files) Scheduling scoring changes for future months Reset YTD and Lifetime Points

2007

Inquiry pop-up window enhancements: current and previous month Points for continuous years of membership Change to points config for online credit cards (moved from “all other loans” to

“OTB or online credit card”)

2008 Switch from per-minute to per-session fees for online banking Inquiry pop-up window enhancements: “possible points” drill-down Tiered Service points inquiry in It’s Me 247 online banking (coming in November!)

2009 ??? (That’s why we’re here today!)

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The New GOLD Standard for Tiered Services

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A Look at Your Peers

Aggregating Tiered Services Stats for all CUs

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Aggregating Tiered Services Statistics

The cliché is, don’t recreate the wheel, but it’s more than that...how do we use a decade of learning about relationships and relationship management techniques so that everyone sees the value?

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Lowest Cost of Going Active With Innovation

Tiered Service “The Network View”

This booklet was designed from a new program that aggregates Tiered Services scoring of all CU*Answers online credit unions in a single operation

We anticipate adding a command key to the Tiered Services analysis that would allow you to view and compare your results with the network on a monthly basis Benchmark your performance

Search for what you have in common and what makes you different

Inspire your teams

Search for peers who might help you with your next idea

What has changed since 2005 about the way your members score?

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Aggregating Tiered Services Statistics

We plan to add a new feature that creates an aggregate data file once a month To begin, will include only online CUs, but we can eventually

export a file to self processors for their use as appropriate – to be determined

Compare your Tiered Service numbers to a group of peers or even a single peer

Choose a peer group based on asset size, number of members, and household scoring choice

Group stats by asset size groups ($0-$10M, $10M-25M, etc.) and member size groups

This isn’t just a Tiered Service proof-of-concept; this is an example This isn’t just a Tiered Service proof-of-concept; this is an example of the type of network view we could have across the boardof the type of network view we could have across the board

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Brainstorming

What’s on your wish list?

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Projects Already in the Pipeline

Extending Tiered Services to the member in It’s Me 247 online banking...deepening the visible relationships with members Part 1: What points did I get and how did I get them?

(in beta now for Fall 2008 release) Part 2: What rewards do I get for those points? Part 3: Redeem my points!

View original prototype

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Other Projects in the Pipeline

From the PLM:

= not displayed in Monitor online

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Let’s Brainstorm

Enhancements to Consider

More things to score? Presence of email address (as long as it’s not a wrong one!) Transaction points (credit card usage, debit card usage, etc.) Shared branch usage What else would you like to be able to track?

Other config changes? Move OTB or online credit card to Goal 3 (Lending) instead of

Goal 4 (Self Service)? (This will have a BIG impact!)

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Let’s Brainstorm

Enhancements to Consider

Rewards to add? Waive minimum balance service charges (account service

charges, transaction service charges) via Tiered Services Do you understand how you can already do this via a Tiered Service

Marketing Club? Rate benefits, too! Automated enrollment/unenrollment

Summarize the cost benefit to the member each month “As a Gold Level member, in August you saved $30.00 in waived

check cashing fees, $13.00 in waived corporate check fees...” Report to member in online banking Include on statements? Or might this take up too much real estate?

What other rewards would you like to offer?

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Let’s Brainstorm

Enhancements to Consider

New technique allowing for unlimited product codes to be selected

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Let’s Brainstorm

Enhancements to Consider

PFI points Can include unlimited DIVAPLs but are there other things to

consider here besides share account types, like a mortgage? Measuring “active” vs. just having an account?

Is PFI as a separate goal/measurement still relevant? The Is PFI as a separate goal/measurement still relevant? The blended concept of savings, loans, service selections, and blended concept of savings, loans, service selections, and

automation might better describe PFI automation might better describe PFI

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Let’s Brainstorm

Enhancements to Consider

A separate Tiered Services configuration for your business accounts Configurable option to exclude master type MO from regular

Tiered Service scoring, giving you three choices: Score them same as individuals (like now) Avoid scoring them altogether Score them according to a separate point system

Points only? Or would you also want separate rewards? Different point groups / tier levels?

What about the Household scoring option? If a household contains an organization, should it be ignored? In all cases, or just according to this new config flag?

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Let’s Brainstorm

Enhancements to Consider

Lifetime Points Grant starter lifetime points to new members prior to first

month’s scoring Fix on adding/subtracting lifetime points for individual members Cap on total lifetime points? Rolling year (or two or three) instead of lifetime accumulation? Redeeming lifetime points while opening accounts, working in

online banking...?

Is the Lifetime Points concept a Is the Lifetime Points concept a focus group all by itself?focus group all by itself?

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Member Rewards Collaborative

An Xtend Member Reach and Partners in Practice Initiative

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Member Rewards Collaborative

A member reward program run by the CU, based on whatever the CU wanted and that CU*BASE could count So if you wanted to combine Tiered Services points (lifetime)

with points for credit or debit card usage and then grant redemption rewards, you could

If you wanted to just count credit and debit card purchases and then grant redemption rewards, you could

If you wanted to just count Tiered Services points and then grant redemption rewards, you could

If you wanted to count anything we could code (e.g., total deposits from anywhere, total bills paid, etc.) and then grant redemption rewards, you could

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Member Rewards Collaborative

The advantage to the credit union is that the programs would be native or internal to their operations

Instead of a third-party’s distribution channel (web, call center, etc.) and notification channels (special statements, special statement merges, web, email, etc.), CU*Answers and the credit union could modify their existing channels and avoid additional handling costs for these services that make the reward programs so expensive

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Member Rewards Collaborative

To make this valuable, we need to develop some sort of redemption catalog that combines credit union service discount options with the ability for members to get third-party value items as well A natural for stored-value cards

I believe that we will have an audience for a "do-it-yourself" rewards software options, but I believe we will have an even bigger audience for CUSO coordinated reward services FIS is not offering these programs without wide margins...we can

offer them without any perceived margins at all

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“Gividends”

Gividends Rewards Management (GRM) – a new collective effort and processing initiative brought to you by Xtend and its partners at cuasterisk.com GRM is a new effort by the Xtend team to work closely with the

credit unions who utilize the CU*BASE core processing platform for their member rewards programs

Combines the Tiered Service feature set with a member rewards fulfillment capability that allows credit unions to

Merge transaction reward points with core member relationship points Market the advantage of credit union rewards Manage the redemption of member points for credit union and general

marketplace value on demand

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Marketing Your Tiered Services ProgramA Complete Tiered Services Marketing and Implementation Package

Brought to you by TAG and Partners in Practice

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Tools You Already Have

Breaking down the Tiered Services Implementation Guide...more than just the “how to” Is Your Membership Moving Toward the Bull’s Eye? – case

study and overview to make the case with your staff and board

Step-by-step checklist for implementing a Tiered Service program

PowerPoint presentation: “A Changing Culture” for presentation to your staff

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Tiered Services: A New Look

For credit unions looking to launch or re-launch a meaningful rewards program rollout

2 parts to the program: A Start up or Re-Launch Kit A Strategic and Creative Marketing Package

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Tiered Service Marketing Package

Start-Up or Re-Launch Kit For first-time CUs as well as those wishing to

understand, improve or enhance their current reward programs A “Tiered Services for Dummies” workbook (name pending) that

will help interpret and simplify the technical reference manual A rollout/implementation calendar, including the regular and

periodic work that is recommended to successfully support a program

Training materials for all stages of the program The “internal marketing” necessary for a successful program

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A “Tiered Services for Dummies” Workbook The “friendly” workbook will compliment (and decipher)

the technical reference manual: It will interpret and simplify the set up for easier decision making It will provide worksheets and examples It will help credit union leaders/coaches understand the internal

changes that are needed to ensure a successful program It will provide examples of how to integrate the program with all

of the credit union’s product marketing It will include examples and recommendations Pre-launch and post-launch details, etc.  

FORDUMMIES

FORDUMMIES

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Implementation Calendar

A calendar “template” for project managers to modify and use from planning to implementation

Recommendations of approximate timing for all major milestones, such as: Fee changes Board approval Training Launch Regular and periodic work that can be done to push the program

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Training Materials

PowerPoint presentation to the managers and staff explaining: Strategic objectives Set up of the Rewards program Roll out

Staff cross selling training How to talk with the members: explaining the program and how

they can get the most out of it

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The Marketing Kit

Package will include: New Name and Logo artwork Newsletter articles and statement messages. Posters, direct mail letters and postcards, inserts and web banners Specialty items, ad artwork, banners etc available for group purchasing

A Comprehensive Marketing Package will be available through CU*Blitz CUs will benefit from group printing and mail services A series of marketing pieces for the launch (or re-launch) period

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The Strategic Creative and Branding Package 

Proposed Name: Name will compliment current

CU*A products

Creative Branding: The asterisk will be used to

illustrate the points they can accumulate for rewards!

(Customization for creative will also be available)

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Next on the Rewards Horizon

Marketing Clubs These clubs are an essential part of the Tiered Services

program success To be created and available through CU*Blitz:

Youth Teens Young Adults

TAG will develop the creative and start-up kit for the marketing clubs working with the CU*A team Sample of what is to come:

Youth Group Marketing Name and Logo

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What else is on your mind?