Right Size Solutions For Any Size Bank ® Card Marketing for 2013 Turn Your Program into a Revenue...

Right Size Solutions For Any Size Bank®

Card Marketing for 2013

Turn Your Program into a Revenue Machine

Scott Broughton

Senior Vice President, ICBA [email protected]

• Highlights of the New Manual

• How to use it

• Using the Manual for creating a marketing

plan

• Additional Resources

• Questions?

Agenda

Repository for Best Practices/Strategies

• Original Manual was produced in 1995 with several updates over the years

• ICBA Bancard specific for client banks• Community bank friendly• Suitable for new and established programs• Features best practices and case studies• Provides benchmarks for portfolio

optimization

Why Create Manual?


www.icbabancard.org


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How to access to the Manual

From www.icbabancard.org:

• Resource Tab

• Quick Links

• Recent News Section

Access to the Manual, con’twww.icbabancard.org/marketingmanual


Marketing Manual – How to use it


Navigating the ManualSave the Manual in Adobe PDF

Navigating the Manual

Navigation made easier using:

• Section headings

• Hyperlinks

• Glossary

• Extra reference

materials


Hyperlinks


Hyperlinks

Other passwords required on sites outside ICBA Bancard


Hyperlinks


Steps in Card Marketing

• Assess your Card Program as it is today• Program Development and/Reevaluation• Product Development • Acquisition, Activation, Usage and Retention• Best Practices


Ask Yourself

Are you carrying one of your bank’s credit cards today?

If not, why aren’t you? Community Bank


Assessing your Program

• Step back and look at your current programIs it growing? By Accounts? By Outstandings? Sales Volume? Use ACE.

• Is your pricing competitive? APRs? Fees?

• Do you have the right product mix to meet the needs of your customers, both consumer and business?

Sample Competitive Gap Analysis

• Other Banks• Credit

Unions• Your Mail box

Sample checklist

Program Development


So, what’s next?

• How does your program stack up?

• What areas do you need to improve?


Scenario One

“Our card portfolio is flat and we are not adding many new accounts. We need to bring in more accounts or our program will not be profitable”


Acquisition Channels – Section 5


Your Branches

• Train your front line staff about your card products.• APRs, fees, loyalty programs/other enhancements,

business cards• Calling officers should be trained too• Staff meetings should include cards on the agenda!

• Branch signage about your card products. Do your customers know about your card products when they walk into a branch or when they visit your website?

• Applications readily available to be completed


Visa Study

In at 2012 research study, most community banks Customers surveyed were not carrying a card from their bank because they were not aware their community bank had a credit card.

85% said they would consider a card from their bank


Other Acquisition Channels

• Pre approved Direct Mail• Website and Bill Pay sites• Social media• DDA Statement Inserts• Promotions and other campaigns. • Emails• Community events


Scenario Two

“Our bank has added a lot of new accounts in recent years but our cardholders are not using our card”


Activation, Usage & Retention – Section 6

Account Acquisition Activation Usage Retention


Activation, Usage & Retention

Basic Customer Facts:

• 80/20 Rule. Some even say 90/10 is the norm today

• Long-term customers have higher spend rates and higher retention rates

• More products mean a greater likelihood of loyalty and profitability


Activation• Send welcome kit or letter to all new cardholders. Stress features and benefits of the card and remind about card activation.

• Monitor inactivity reports. Call cardholders who have not activated their cards.

• If using ScoreCard, offer points for first usage of card.


Usage

• For never actives or not active for six or more months. • Send reminder notices about the value of your card.

• High users that have shown loyalty. Most profitable but don’t ignore.

• Low to medium users represent the best opportunity to increase usage.


UsageFactors that drive usage:

• Credit Lines – are you providing your cardholders with adequate lines of credit?

• Major Life Events – marriage, new home, college, retirement

• Key Seasonal Events – Back to school, vacations, holidays.

• Recurring Payments – good way to lock in a cardholder.


Retention• If offering rewards (ScoreCard), remind cardholders of the benefits.

• Other enhancements.• Travel Accident Insurance - $150,000 coverage for all

accounts. • Customer service. Your customers already have accounts at your bank. As a cardholder, they can rely on that same good customer service.


RetentionLook for warning signs:

• Requests for balance payoff• Questions about rates, terms, rewards, etc.• Unsatisfied cardholder about a problem resolution.

Five Key Reasons of Attrition

1. Increasing pay-down rate – why?

2.Decrease usage – Why?3. Intro rate expiring4.Promotional rate expiring5.Annual Fee


Scenario Three

“What are other banks doing to promote and grow their credit card programs?”


Best Practices – Section 7• Proven strategies used by other banks.

• Links to documents and other websites that will provide valuable information including bank case studies.

• Email, website and social media strategies.


Reference Tools, con’tLocated in-document and on the Manual’s landing page

Customizable:• Letters• Surveys• Spreadsheets

Turn-key Communications

Contact our Client Services team at:

(800) 242-4770

[email protected]

Questions?

Right Size Solutions For Any Size Bank ® Card Marketing for 2013 Turn Your Program into a Revenue...

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