Have you ever wondered how to make your credit card promotional campaigns successful? And how to tell if a campaign is successful?
It all starts with a simple task.
“You have to have a goal,” Michelle Goeppner, director, credit product strategy at Alliant Credit Union in Chicago, said during a breakout session Tuesday at the CUNA Lending Council Conference in Anaheim, Calif.
When developing a card promotion campaign, Goeppner suggests keeping these best practices in mind:
1. Test and learn. Create a card campaign using various offers, creative materials, and channel offerings, and then test it before offering it to your members. “Be OK with failure,” Goeppner says. “If a campaign tanks, tweak it and move on.”
2. Study the analytics. Look at the data and determine what your members need and which card options might be the best fit.
3. Reduce the irritants. Make it easy for your members to do business with your credit union and the card promotion. Ensure you understand your members and their financial needs and behaviors.
4. Invest in technology. Make it a priority to invest in the systems, resources, and tools you’ll use in your card promotions, Goeppner says. Don’t avoid updating technology due to cost or decide to create “Band-aid” solutions as a short-term fix. Consider building a solution that meets your credit union’s needs. “If we don’t continue to put forth effort, it will be very difficult to compete in this space,” Goeppner says.
5. Say no. Don’t reverse fees or reduce rates merely because a card member asks. Also, don’t automatically close inactive cards. “You can charge fees but just remember you don’t have to be the largest fee out there,” Goeppner says.
6. Determine who you are and why you exist. Define what your credit union stands for, identify your unique value, communicate why your credit union—and it’s credit cards—are different from other financial institutions. “What’s your unique value proposition? Every one has one and we should be leveraging them,” Goeppner says.
7. Opt for less manual and more automation. Automate your campagins so that communications will go out to cardholders automatically whenever a trigger—such as a member not using their card for 12 months, or not activating a new card that was received in the mail—is set off.
“If the trigger is activated, a message is sent out automatically,” Goeppner says, which increases the chances credit union staff will be able to connect with the member and get them activate again.
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