Jim KaschFebruary 14, 2015
REENGAGING YOUR SPONSOR
How We Got Here Affi nity Marketing Affi nity Marketing for Credit Unions Three Levels of Business Development Executive Responsibilities
Sponsor / Credit Union Value Cycle Executive Updates Demonstrating Value Value-Add Programs Advisory Committees Share the Credit
AGENDA
In the beginning… Credit unions formed with the help of actual sponsors as a
cooperative to assist employeesOver time…
Credit union leaders grew lazy in managing sponsor relationships; we grew entitled
Until… What employers thought of as an asset became a liability “No cost benefit” became a “no value” proposition
And now… Sponsors “abandon” credit unions, and credit unions graze
elsewhere
HOW WE GOT HERE
Who’s at fault?
Reengage sponsors through relationships that demonstrate value to the organization
Creatively build partnerships between the credit union and the sponsor
Redefine the credit union’s value proposition in ways that resonate with sponsors and their leaders
Get out of the offi ce and meet them face to faceHard workEmbrace our greatest competitive advantage – the
affi nity between the credit union and the sponsor
HOW DO WE FIX IT?
“An individual level of cohesiveness, social bonding, identification and conformity to the norms and standards of a particular reference group” – (Macchiette & Roy, 1992)
Four aspects of affi nity1. The support of a deserving cause (Sympathy)2. Creating a sense of recognition (Relational)3. The desire to be a part of a dissimilar social group
(Aspirational)4. The wish for acquiring special privileges (Self-interest)
Features of affi nity marketing Third party endorsement, either explicit or implicit Shared incentives Enhancement of products and services
AFFINITY MARKETING
Competitive advantage Lower cost of account acquisition Higher lifetime value through improved retention Operational effi ciencies for more accurate target marketing Deeper understanding of consumers
Brand affi nity & validation Implicit or explicit endorsement from employer
Leverage Access to employees that competitors can’t purchase Communication channels, events, etc.
BENEFITS OF AFFINITY MARKETING
BANKS WANT WHAT YOU HAVE
Employers can be identified as affi nity groups that have positive or influential relationships with a group of consumers
Employers have better access to these consumers than can be achieved through normal marketing channels
Affi nity can be demonstrated in various ways: Branding – Credit union name, logo, colors, lexicon Locations – Access to services near or on-premises Cooperative campaigns – Active partnerships through copy
and/or event (Car Sale, Pre-Qualification, etc.) Daily business activities – Members interact with CU more
often than company HR team. Can you help distribute company notices (open enrollment, holidays, etc.)?
AFFINITY MARKETING FOR CREDIT UNIONS
Executive
Functional
Tactical
Executive – Open doors, build relationships
Functional – Manage and coordinate events and campaigns
Tactical – Execution of plans
THREE LEVELS OF BUSINESS DEVELOPMENT
CEO
VP/Mgr
BD Team
Sponsor / Credit Union Value CycleExecutive UpdatesDemonstrating ValueValue-Add ProgramsAdvisory CommitteesShare the Credit
EXECUTIVE RESPONSIBILITIES
Sponsor
Credit Union
Employees
SPONSOR/CREDIT UNION VALUE CYCLE
The credit union value proposition delivers superior value, convenient access, and
differentiated service to employees, which increases participation and improves
cooperative performance, allowing more investment
The sponsor endorses the credit union as a valuable
benefit and preferred business partner.
The sponsor is recognized as a caring and thoughtful employer, and in
addition may realize:
• Credit for positive financial impact to employees lives
• Savings through reduced turnover• Service from a trusted business
partner• Increased revenue
• Improved employee morale
Leader to Leader CEO to Highest Ranking Person
Quarterly Meetings Breeds familiarity
Updates on CU Operations As they pertain to the employees of the company specifically # of employees being served Types of services – new services – new locations Member feedback
Updates on Company Operations Major initiatives / pain points How can credit union help
The ask How can company help credit union help employees
EXECUTIVE UPDATES
BANK CU
Ave Savings Balance $5,000 $5,000
Interest Rate 0.01% 0.50%
Ave Annual Fees $375 $125
Auto Loan Balance $15,000 $15,000
Auto Loan Interest Rate 4.95% 2.95%
Annual Loan Interest $682 $404
Credit Card Balance $7,500 $7,500
Credit Card Rate 19.95% 9.95%
Credit Card Interest $1,497 $746
TOTAL INTEREST EARNED $0.50 $25
TOTAL INTEREST/FEES PAID $2,554 $1,275
CREDIT UNION DIFFERENCE +$1,304
DEMONSTRATING VALUE
Current participation Percentage of current company employees who are credit
union membersTotal opportunity for savings
All employees NOT currently members times average annual savings
Access statistics Branch visits Loan applications (how many employees have asked to
borrow?) Loan fulfillments (how much have you loaned to
employees?) ATM / Online / Mobile interactions
Qualitative reporting on employee experience
REPORTING
Member Assistance Programs Natural disaster relief Layoff relief Unexpected calamities Community awareness
Employee Communications How frequently do your members access home banking? How frequently do they interact with your team? Leverage the credit union for employee communications
Formal Programs that Enhance Employees’ Lives Pre-Qualification campaigns
VALUE ADD PROGRAMS
Pre-qualifi cation campaigns By sharing high level non-
member data, the employer can help you save thousands of dollars for its employees
Non-disclosure/privacy agreements can be signed
Data can be shared directly with third parties
Pre-qualify for vehicle loan refinance opportunities
Send mailers under joint name so employer gets the credit
If you do not have this type of relationship yet with the sponsors, you need to get there.
WIN CUBED
Refinance
Campaign
Sponsor
Credit
Union
Employee
Member Service Advisory Committees Volunteer committee with tight affi nity relationship Quarterly meetings with 2-way conversations
Updates from credit union Updates from business unit
How can the credit union support the business unit?Farm system for future Directors
ADVISORY COMMITTEES
Share every instance of positive member feedback Thank the member and ask them to thank their employer
for making credit union services available to themCraft larger narratives out of actual member feedback
These can help you articulate the need for sponsor support in non-traditional ways “Did you realize the average employee saves more than $1,000
a year by banking with us versus the local banks? How do we extend this value to the rest of your employees?”
Share interaction summaries with the employer “Your employees use ATMs an average of three times per
month, per person. If you can help us understand better their expectations, we can provide better service. The employees would like an additional ATM at your other location.”
SHARE THE CREDIT
Jim Kasch407.245.4301
QUESTIONS