Hottest Credit Card in Town
David Stark, PresidentRosemarie Siems, Electronic Services
ManagerBull’s Eye Credit Union
Bull’s Eye Credit Union
Wisconsin Rapids, WI 54495-1087
93,611,001 Assets
20,726 Members
9,627,699.44 Credit Card Portfolio
7,781 Credit Card Accounts
Why Did We Become ‘The Hottest Credit Card in Town’?• Threat of Selling Portfolio
– Decrease in Outstanding Balances– Decrease in Finance Charge Income– Decrease in Interchange Income– Decrease in Credit Card Accounts– Competition
Declining Credit Card Income
0
100000
200000
300000
400000
500000
600000
700000
800000
1999 2000 2001 2002 2003 2004
Interest Income
Fee Income
Interchange Income
Expenses
Declining Outstanding Balances
0
2000000
4000000
6000000
8000000
10000000
12000000
1995 1997 1999 2001 2003
Balances
Declining Credit Card Accounts
0
2000
4000
6000
8000
10000
12000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Accounts
How Did We Become ‘The Hottest Credit Card in Town’?• Contact with Certegy Representative
• Credit Card Holder Survey
• Brainstorming Sessions
• Developed Plan and Timeline with Certegy
• Implementation
• Marketing
• Training
Plan Strategies
• Review current policies to increase line of credit limits and receive Board Approval
• Submit application to Certegy for Scorecard and Direct Mail
• Review ‘Gold and Classic’ portfolio and transfer who qualify to ‘Gold and Platinum’
• Update/Revise current applications and disclosures
• Create a Marketing Plan• Train staff on new credit card options/program
Plan StrategiesContinued
• Implement ‘Skip A Payment’ program• Utilize Beacon scoring for monthly reissue• Set up new Bill Codes• Set up Direct Mail Campaign to existing members
without a credit card• Set up Direct Mail Campaign to non-members in
chartered area• Transfer cardholders to upgraded cards prior to
rate conversion
Researched Local Competition
Fixed or AnnualName Type Rate Variable Fee Rebates
Members Advantage C.U.VISA/MC 11.99% Fixed None NonePort C.U. NoneNekoosa C.U. MC 11.90% Fixed None NoneCentral WI C.U. VISA 7.99% Fixed None None1st Federal - WR VISA 5.90% Intro Rate
Platinum 10.74%-16.74% Fixed $55 Air MilesClassic 12.74%-16.74% Fixed
Valley Communities VISA 5.9% -6mos. Intro Rate None NoneVariable - thereafter
River Cities Bank VISAPlatinum 5.90% -6mos Variable None None
8.24%-14.24%Platinum 5.90% -6mos Variable $55 Air Miles
14.24%-19.99%Classic 5.90% -6mos Variable None Cash rebate
16.24%-19.99%
LOCAL CREDIT CARD PROGRAMS
Top 5 Cardholder Survey Results
Local ServiceLow Interest Rate CardNo Annual FeeReward Points or Cash BackBalance Transfer Rate
Credit Card Program
Old Program Offered MasterCard and Visa
Cards in each program
Platinum 9.9% APR
Gold 11.75% APR
Classic 12% APR
New Program Platinum 7.9% APR With
3.9% Balance Transfer Rate for 6 Months
Visa Gold 9.9% APR With Scorecard Bonus Point Rewards
MasterCard Gold 9.9% APR With Scorecard CashBack Rewards
Classic 14% APR
7.9% A.P.R. Visa/MasterCard
FIXED
9.9% A.P.R. FIXED with Scorecard Bonus
9.9% A.P.R. FIXED with Scorecard Cashback
14% A.P.R.Visa/MasterCard
FIXED
25 Day Grace Period Includes Travel Bonusesand Gifts Rewards
Earn $$$ based on Purchases 25 Day Grace Period
25 Day Grace Period 25 Day Grace Period
Click here for details! Click here for details! Click here for details! Click here for details!
Web Site Hottest Card In Town
Balance Transfer Program
• Special Rate on Platinum Cards only• 3.9% APR for 6 Months• Minimum transfer amount of $50.00• Brochure with form to fill out• Our Credit Card Department
Sent out checks Sent cardholder letter with additional checks Posted cleared items to credit card accounts
New Account Goals not AchievedJuly August September October November December Total
VGO-000 Visa Gold 4 7 4 0 1 2 18 VPL-000 Visa Platinum 28 16 15 15 7 8 89 VCL-000 Visa Classic 2 6 1 0 2 2 13 MPL-000 MasterCard Platinum 24 13 12 15 8 0 72 MCL-000 MasterCard Classic 4 2 4 10 4 1 25 MGO-000 MasterCard Gold 5 7 3 5 1 0 21
Total 67 51 39 45 23 13 238
Goal: 750 New Accounts by December 31, 2003
July August September October November December Total MPL-001 MasterCard Platinum 0 90 20 12 1 1 124 VGO-001 Visa Gold 0 27 3 1 0 1 32 MGO-001 MasterCard Gold 0 19 3 3 2 2 29
Total 0 136 26 16 3 4 185
Goal: 500 New Accounts by November 1, 2003
July August September October November December Total MPL-500 MasterCard Platinum 0 88 30 13 3 2 136 VGO-500 Visa Gold 0 40 7 2 0 0 49 MGO-500 MasterCard Gold 0 29 6 6 0 2 43
Total 0 157 43 21 3 4 228
Goal: 1,000 New Accounts by November 1, 2003
New Credit Card AccountsBECU Cross Selling
Direct Mail - Member List
Direct Mail - Non Member List
Balance Transfer Results
Rejects Pending Processed Paid TotalBull's Eye CU 3 0 64 293 360Direct Mail Member 0 1 66 67Non-Member D M 0 3 80 83
Total 3 0 68 439 510Date Amount No. Checks Date Amount No. Checks
9/22/2003 21,432.71 12 12/8/2003 13,124.86 69/23/2003 12,910.00 5 12/10/2003 6,214.60 29/24/2003 2,909.60 3 12/11/2003 240.00 19/24/2003 20,232.48 10 12/12/2003 2,474.13 2
Total 2,183,760.82 967 2,258.28$ Average Check 2,258.28$
Balance Transfers12/31/2004
Campaign Ending Balances
5/31/2003 12/31/2004Difference for
the MonthMasterCard Classic 2,014,419.91 257,444.04 (1,756,975.87) MasterCard Gold 418,416.12 589,604.31 171,188.19 MasterCard Platinum 1,061,526.88 5,432,237.46 4,370,710.58 Visa Classic 1,250,746.44 203,732.39 (1,047,014.05) Visa Gold 187,007.41 819,189.28 632,181.87 Visa Platinum 1,012,837.54 3,201,571.15 2,188,733.61
Total 5,944,954.30 10,503,778.63 4,558,824.33
The above balance differences reflects the upgrade transfers from the Classic cards to Gold and Platinum.
Staff Rewards
• Dinner for those who assisted with the upgrade process
• Lunches as Account Balance growth targets were achieved
• Steak Fry for all Staff when Balance Goal was achieved
Campaign CostsMarketing - $80,000
• Advertising-Media• Direct Mail• Website• Drive up stuffers• Lobby displays• Cross-Selling Campaign
Processing - $78,900• Account /Cards reissued• Plastic and Disclosures• Scorecard• Balance Transfer• Direct Mail set up
Cost Justification• 185 New Accounts
• Increase in Balances 4.5 Million
• Increase in Interchange Income
• Increase in Finance Charges
• Increase in Fee Income
• Maintain balances
Current Balances
12/31/2004 3/31/2005Difference for
the Month Open To Buy No. AccountsMasterCard Classic 257,444.04 204,341.50 (53,102.54) 446,236.50 384 MasterCard Gold 589,604.31 540,935.82 (48,668.49) 712,299.18 307 MasterCard Platinum 5,432,237.46 4,955,486.73 (476,750.73) 17,902,104.27 3,958 Visa Classic 203,732.39 160,323.52 (43,408.87) 261,046.48 275 Visa Gold 819,189.28 733,321.65 (85,867.63) 975,598.35 412 Visa Platinum 3,201,571.15 3,033,260.22 (168,310.93) 10,595,121.78 2,445
Total 10,503,778.63 9,627,669.44 (876,109.19) 30,892,406.56 7,781
Current Program Strategies
Card Reissue Review – use Beacon Score for increases and upgrades
Skip A Payment Platinum 4 Times a Year Gold 3 Times a Year Classic 2 Times a Year
4.9% APR Balance Transfer Rate for 6 months Increase Member Penetration – Cross-SellingFast Track Card Activation Program
Future Program Goals
• 50% Member Penetration
• Maintain 11.5 Million Dollar Portfolio
• 5% Annual Increase in Outstanding Balances
Questions?
Rosemarie Siems
David Stark