Members love perks. Feeling like they're getting something extra can be a great incentive to sign up for just about anything. If your credit union offers a credit card, consider what kind of extras you can offer, in addition to interest rates, that will bring members to you instead of going for their airline miles or rewards credit cards.
There is no shortage of reward options, so you need to stand out with a better carrot and stick than the rest. Here are five best practices to make sure your rewards program is a success.
If you're not advertising your rewards program, it might as well not exist. Ideally, you should create a marketing schedule for the entire year including postcards, emails, signage, social media posts, and calendar related promotions. Define your promotional time windows as well.
For example, if you're offering a balance transfer promotion, be crystal clear on the dates it's available and the dates the transfer must be complete by. Clarity in your marketing on the specifics from the outset will help you avoid member frustration.
You're telling them the program exists, how to qualify, and what they get as a result. But you also need to teach prospects as well as current cardholders how they can get the maximum value from the program. This can include:
By demonstrating that your credit union can offer a full financial solution—from banking to loans to credit cards—you help establish value that extends beyond what a single program can offer.
Your CU has a wealth of transaction data that can be analyzed to help you determine the members that will be the most responsive to your credit card program. A great place to start is the share draft account transfer record.
If there are ACH payments going to big banks regularly, you can see who might be more likely to be interested in credit cards. This audience could likely be put into a targeted campaign that ties in messaging for balance transfers specifically since you can tell they are likely to be carrying debt.
One of the key advantages credit unions have is their deep connection to the community. Leverage these local ties by customizing your credit card rewards program to resonate with your members' unique needs and interests. Consider these options:
By making your rewards program more relevant and personalized, you not only differentiate your credit union but also strengthen your bond with the community you serve.
If you're in month three of your marketing strategy and you're not seeing a boost in your program, it's time to investigate how members are using the card to identify opportunities for alternate offers.
For example, if many members have the card, but it doesn't seem like they're actually using it, perhaps a promotion of double points on purchase could incentivize them.
In the end, by combining enticing rewards, strategic marketing efforts, and comprehensive member education, your credit union can present a credit card program that shines in a competitive market. This not only adds tangible value to your members but also propels ongoing growth for your credit union.
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