Grow your membership through SEG development. Learn best practices, use Commercial products as a new door into SEGs, onboard and speak the CEO\'s language with ROI. Want more? Call Eric Gagliano at 937-426-9848.

1. SEG Development

2. Last Year
 Creating a BD Plan
 Positioning & Goals
 Market & Competitive Overview/Trends
 Anticipated Growth Areas
 Acquisition
 Basic Sales Techniques
 Research Tools
 Penetration
 SEG Agreement
 Basic On-Boarding
 Welcome Kits
 Basic Tactics
 Budgeting

3. Today’s Topics

4. Resources
 Best Practices from CU Professionals
 What do banks do
 Brain Storming

5. SEG Acquisition

6. 2008
Sean McDonald
Director, Business Development Marketing
Liberty Savings Federal Credit Union
Jersey City, NJ
SEG Acquisition Process/Tips

7. Challenges
1. Getting past the gatekeeper for an appointment
with decision maker
2. Explain why the CU matters
3. Reaching Penetration Goals Member Acquisition

8. “We shouldn’t have to work as hard as we have.”
“We’re finding that it seems to be becoming harder
for banks to get into companies. Business owners
are weary of dealing with them.”
“Wachovia has a Wachovia@Work program, but
in New Jersey, community banks do not offer the
types of programs to compete with us.”
Sean McDonald
Director, Business Development Marketing
Liberty Savings Federal Credit Union
Jersey City, NJ

9. 

12. Before the SEG Signs
 Research company’s clients (website, Google, press
releases, etc). If company has common relationships:
 Ask common SEGs for testimonial directly to decision maker
 Ask common partners for personal introduction
 Research if decision maker/owner is in organizations or
professional groups
 Use and leverage all professional contacts
 Return referrals to those who give them
Network!
“Cold calling stinks … no one likes it!”

13. There Is No Magic Bullet

14. “After they get to know me, it’s easier to approach
them about the CU.”
“BD Professionals need to find ways to effectively
build relationships. Get them to know YOU. I try to
help a SEG get new business before I even talk about
the Credit Union.”
Sean McDonald
Director, Business Development Marketing
Liberty Savings Federal Credit Union
Jersey City, NJ

15. After the SEG Signs
 Arrange on-site to speak to all staff (staff meeting, training
session, financial literacy seminar)
 “Maintain Excellent Credit”
 “Managing Money in Difficult Times”
 Ask for permission to include “Stuffer” in the next payroll to
introduce CU
 If SEG has intranet, ask for CU to be included as a company
benefit for employee and their families
 Target agreement to let CU in periodically throughout year
 Provide Welcome Kit/application/info to be included in
“new-hire” packets
 Get one or more ambassadors to serve as liaison
 Ambassador must be trained and enthusiastic about CU

16. “On-sites are fine but they need to be advertised
AND endorsed by the decision maker. Sitting in a
cafeteria or break room for hours on end is a waste
of time unless people know that you’re there and
what you’re all about BEFOREHAND.”
Sean McDonald
Director, Business Development Marketing
Liberty Savings Federal Credit Union
Jersey City, NJ

18. Lessons Learned
 When dealing with a SEG owner/decision maker, you need to
realize that they, themselves, may have no need for a CU.
“Sell” it by focusing on how offering CU membership will
ultimately benefit their company (more productive
employees, owner will look like a hero)
 Try not to agree to on-sites where they say, “You can sit in our
break room for a few hours and see what happens.” Your
time is valuable and what you offer is important for members.
Your visit should be treated with respect. Advertise visit and, if
possible distribute information before hand.
 Your ambassador is key … They need to be a referral source.
There’s nothing wrong with having more than 1 ambassador.
“Heck, have 1 for each department! The point is, you
need to have a credit union CHAMPION in every SEG.”

19. Lessons Learned
 You’ll lose contact with your SEGS overtime if new employees
are not communicated to. Getting in front of new hires, either
in person or through promotional material is important.
 Getting SEGs signed is the easy part. Getting employees to
join is hard.

20. Results
“We’ve always had better success making an
‘in-person’ pitch rather than a direct mail piece or
cold call. Using the Networking methodology, we
have signed on almost 150 new SEGs.”

21. SEG Penetration

22. 2009
Nancy Hutchinson
SVP Marketing/Business Development
Minnesota Power Employees Credit Union
Duluth, MN
SEG Recruitment Retention

23. SEG Recruitment Retention Plan
3-Step Process
1. Build relationship with company
2. Recruit employee members
3. Reach out to the wider community

24. Company Relationship
 Implement a written CU/SEG agreement
 Credit Union Exclusivity
 Accountability (“If we do …, you must…”)
This agreement is made this 20th day of January, by and between ________ and Minnesota Power Employees Credit Union and shall commence for the
period of 36 months, renewing in consecutive terms thereafter. If __________ or MPECU wish to terminate this lease they must notify the other party
no less than 60 days prior to renewal.
MPECU will operate an automated NCR5670 (ATM) on the business establishment of _________, as it is now located at, _____________, Bldg #2,
Duluth, MN 55811.
This agreement shall be for the term commencing January 25, 2006, and continuing thereafter for a period until terminated by mutual agreement of the
parties, or by either party, pursuant to other provisions of this contract.
MPECU shall use the Premises for the sole purpose of constructing, maintaining, and operating (including servicing) an ATM. MPECU shall install the ATM
and related communications equipment. Any damage or repair cost to the ATM and related equipment will be the responsibility of MPECU unless caused
by negligence of ___________.
___________ shall provide space for the ATM and related equipment. ________ shall be responsible for any modification to the Premises to permit
installation of the ATM. Subsequent relocation of the ATM and related equipment on the Premises requested by __________ shall be solely at Cirrus
Design’s expense. ___________ shall provide MPECU with thirty (30) days notice of such ATM relocation. __________, at ___________ expense, shall
provide for electricity, phone line, and any other utility serving the MPECU ATM. __________ shall maintain the Premises in good order and repair and
keep the same free from rubbish and dirt. ___________ agrees to display standard MPECU ATM signage as prescribed by MPECU at the ATM location.
MPECU will comply with all applicable laws, ordinances, statutes, and regulations of the United States and the State of Minnesota, related to or affecting use
of the Premises and the ATM
If ___________ fails to perform any obligation within thirty (30) days after written notice from MPECU, __________ shall be deemed in default
hereunder. In the event of default by ___________, MPECU may terminate this agreement upon giving fifteen (15) days written notice to ___________.
For purposes of such notice, or notice of any other kind related to this agreement, the parties agree service of such notice shall be deemed effective by
sending prepaid certified mail and addressed as indicated below or to such other place as may be designed in writing from time to time.

25. Company Relationship
 Position the CU as an employer profit and benefit enhancer
 401K contributions
 Flex Spending
 Focus on key employer decision maker
 Keep a “Little Black Book” (Birthdays, Anniversaries, Family info., etc.)
“We don’t just focus on one person.
People come and go and you don’t want
anyone in the organization to think that
you treat anyone else special. I’ll often
know 4-5 people in a SEG very well.”

26. Company Relationship
 Explain the greater business services opportunity
 SEG Related Seminars
 “Retail Credit Card Fraud Identification”
 Relationship Pricing

27. Company Relationship
 Demonstrate that employees want financial education
 Build effective employer support for the CU
 Partnerships
 Sponsorships
 Picnics
 Target, specialize and focus on selected SEGs
• # of Employees
• Do they pay on time?
• General company background
“Don’t be
afraid to turn
down a SEG.”

28. Recruit Members
 Incent member enrolment, not contracts produced
 MPECU targets 4-6 products per new member
 Dedicate significant resources to the SEG program
 Management
 Branch Managers
 Build employee awareness to achieve success
 Meet and Greets
 Flyers/Stuffers
 Offer a “can’t miss” product to build membership
 Lifestyle Marketing
 Use credit union ambassadors effectively

29. Lifestage Marketing

30. Community Outreach
 Pursue a special SEG strategy if yours is a community
credit union
 “Join organizations”: Chamber, Rotary, etc.
 Sponsor activities, or be on boards that build
community and awareness

31. “A SEG must be carefully managed and promoted.
Credit unions cannot take for granted that once
recruited, a SEG employer will support the needs of the
credit union, and that employees will automatically
join and use its services.”
“You have to get involved at every level!”
Nancy Hutchinson
SVP Marketing/Business Development
Minnesota Power Employees Credit Union

32. Results
After 12 years of this process, MPECU has enjoyed:
 Membership has grown by 41%
 Assets size has more than doubled

33. On Boarding

34. Why is On Boarding Important?
 According to Frederick Reichheld, author of
“The Loyalty Effect”
 A 5% increase in retention can lead to a 100% increase
in profitability.
 In the banking industry, banks spend, on average, $500 to
acquire a new customer and less than $52 to retain.
 Which would you rather see the bank invest?

35. “Quality in a service or product
is not what you put into it. It is
what the client or customer gets
out of it.”
- Peter Drucker

36. Why is On Boarding Important?
Most cross-sell opportunities come in the first few months after
checking accounts are opened.
In fact 73% of all cross sales occur in the first three months of a
banking relationship.
Gallup Management Journal, November 2005

37. “You’ll never have a product or
price advantage again. They
can be easily duplicated, but a
strong customer service culture
can’t be copied.”
- Jerry Fritz
Sooooo … we can’t do this…

38. What NOT to do…

39. Customer Lifecycle
 Target – Prospective customer stage, targeting
with specific products/services
 Acquire – New customers open an account and
are introduced to your financial institution
 Service – Continuous On Boarding and day-to-day
servicing (transaction and value-added)
 Develop – Present offers to expand and grow
relationship

40. What’s At Stake?
“Only 26% of the average bank's
customers will consider it for their next
purchase, and few will look to a bank for
their investment needs. To improve
their cross-sell odds, banks must target
online banking and bill pay customers.”
Forrester Research 2006

41. On Boarding is Critical
 90 Day Window
 Trust the Process
 Manage Expectations
 Communicate

42. Time is of the Essence

43. Internal Promotion Example

44. “Do what you do so well that
they will want to see it again …
and bring their friends.”
- Walt Disney

45. BAI- 90 Day Window of Opportunity Report

47. Communication Methods
Schedule Example (90 Days):
- 1-2 Day
- One Week
- Two Week
- Three Week
- 60 Day
- 90 Day

48. Communication Methods
 Schedule Example (1 Year):
 1 Day: Personal “Thank You” note
1 Week: Welcome letter/survey
1 Month: Proactive personal call
Make certain they received materials
Gauge experience
 2 Months: Personal call
– Ask strategic, customer-focused questions
 6 Months: Branch manager calls to ask about experience
 1 Year: Handwritten Anniversary Card

49. “Treat every customer as
if they sign your paycheck …
because they do.”
- Unknown

50. Communication Methods
 Email
 Phone Call
 Letter
 Direct
Considerations:
 Determine who will send each communication
(President, Branch Manager, CSR, etc.)
 Retail or Business Product

51. Success Tips
 Touch customers early and often – include Brand
 Service quality at all touch points – direct mail,
online, frontline telephone and branch team.
 Demonstrate understanding – customer relationship,
customer value, and financial expert.
 Include actionable steps
 Segment Audience – Targeted Communications
 Provide Consistent Training
 Ensure Accountability
 Have a special plan to onboard SEG Ambassadors

52. Keep the Momentum
Don’t stop communications after 90 days!
• Touch customers throughout the life of their relationship
• Keep calling/mailing limited to no more than once
per quarter
• Target customers according to their current relationship
• Homeownership status
• Age
• Income
• Product Usage
• Other demographics/Lifestyle characteristics
• Include actionable offers in an effort to retain, reward and
deepen relationships.

53. One More Case Study
Andy Reed
Business Development Manager
American Airlines Federal Credit Union
Forth Worth, TX

54. Situation
 TIP Charter
 Aviation Related Organizations
 Airline
 Government Related Aviation
 Employees on airport property (Support Service)
 Specifically excludes: Retail, Restaurants and Car
Rental
 Geographically Disbursed (43 branches across country)
 Cashless CU
 Security Regulations/Badging makes it difficult cold call or
visit TIPs
The Key: 4 Function Structure

55. 1. Car Buying Advocacy Program
CUDL

56. 1. Car Buying Advocacy Program
 Work with CUDL
 Dealer Advocate
 Focus on Seminars
Smart, Savvy Sophisticated
A Women’s Guide to Car Buying
(Also offer Teen Buying)
Presented by Barbara Terry (NASCAR)
First Seminar Results:
 85 Participants
 40 Referrals for Approvals
 25 Loans

57. 2. Volunteer Army
Coordinator Program
 American Airlines other TIP Employees
 170 people strong
 Represent the credit union
 “They’re were we’re not”
 Focus on key gate keepers in TIP companies. Typically:
 Modest means
 Under served/Under banked
 Younger (off-sets older AA member-base)
Their Job
 Refer
 Feed information to members

58. 2. Volunteer Army
Focus – Primary Products
 Savings
 Checking
 Overdraft
 Debit
Rewards Program
 Visa Points
 Double Points in first 60 days
 Incentive Trip (every other year)

59. 2. Volunteer Army
Training
 Twice/year offer to fly them to TX for 2 ½ day training
(Ambassadors asked to attend once every 2 years)
 CU philosophy
 Initiation into CU culture
 Products Services Basics
Annual Budget for Entire Program
 $19,000
 $7,400 for trip every 2 years

60. 2. Volunteer Army
Results
 75-80% of Ambassadors Refer
 Ambassadors have higher products per member than CU staff
2009 Goal
Actual as of Aug.
Consumer Loans
$689,000
$1,728,977
Mortgage Loans
$837,000
$3,202,957
Training Results (April 2009)
Of 38 Attendees (60 days post-training):
 360 new products
 55% refresher attendees (51% of new product sales)

61. 3. Sales Side (2 People)
Objective: Track TIP Leads Establish Relationship
 Top-down approach
(Focus on CEOs/Owners)
“Can you provide contact at local level?”
 Bottom-up from local information
Means:
 Cold Call
 Email
 Visit

62. 3. Sales Side
TOOL
Ways around security/badging
 Escort by AA Employee or
Coordinator
 Set-up appointments in
advance

63. 3. Sales Side
Goals:
 1,800 total contacts per year (4-5 contacts to land TIP)
 15-30 NEW initial (cold call) contacts per month
 4 Nationwide PREFERRED PROVIDER agreements

64. 4. Service Side (2 People)
Objective: Onsite Service
 Onsite CU days
 Formal Presentations
 Informal “Table” Visits
 Break room
 Benefit Fair
 Company Picnic
 Revisits
 Ranking system (3, 6, 12 month)
 Partners recommendations/desires

65. Credit Union Wide
All employees at all levels meet with BD during orientation
 Branch Goals
RESULTS:
 10% TIP Growth in 2008
 29% TIP Growth in 2009

67. When We Return
 Commercial Products
 ROI/Measurement

69. Commercial Products

70. Commercial Products
• Extend BD relationship as a resource
• Compete against banks
• A new foot in the door
• CUSOs

71. Small Business Dynamics:
The Economy-Driving Engine
 There are an estimated 25 million small businesses in the U.S.
and they are growing at a rate of 14% per year
 Small businesses would constitute the world’s 3rd largest
economy
 Delivers approximately $50 billion in annual revenues
 Small businesses tend to be 2 – 3 times more profitable than
the average retail customer
 1 in 13 US retail banking customers is an “under-banked
business (no business checking or savings)

72. What’s going on locally?
Business Lending Statistics
Maryland
DC
CUs
Banks
CUs
Banks
Total Assets
$15.4 Billion
$40.2 Billion
Total Assets
$6.7 Billion
$1.6 Billion
Market Share/Deposits
11.80%
88.20%
Market Share/Deposits
19.62%
80.38%
Total Business Loans
$169 Million
$13 Billion
Total Business Loans
$2 Million
$559 Million
Market Share/Biz Lend
1.27%
98.73%
Market Share/Biz Lend
0.36%
99.64%
Biz Loan as % Assets
1.09%
32.62%
Biz Loan as % Assets
0.03%
35.54%
3 yr Change
$92 Million
(-$7 Billion)
3 yr Change
($-1 Million)
$196 Million
119.1%
-33.1%
-37.9%
54.0%
111 credit unions have outstanding MBLs (23%)
3 credit unions have outstanding MBLs (5%)
Source: CUNA Economics Statistics Dept. All financial data is December 2008.

73. Small Business Dynamics:
Who They Are
 50% of small business owners prefer to use the
same service providers that they use for their
personal needs
 32% of these businesses are women-owned,
and 9% are minority-owned
Nearly 90% of small businesses use commercial

banks as their primary financial provider

74. What You’re Up Against
Wachovia Bank Value Proposition
People Service Ideas
• Talented, experienced • Guaranteed first-rate • Understanding your
local bankers and customer care from business is our #1
relationship specialists banking team, branch, priority. We ask…and
backed by a team of telephone or Internet we listen
product partner
specialists • We regularly ask for our • Proactive, thoughtful
customers’ feedback and ideas to help you grow
• Access to sales and measure the results your business, retain
service specialists in your employees and
ways that work for • Convenient, anytime accumulate wealth
you…in person, on the access; it’s easy to do
phone, over the web business with us

75. Low-Cost Acquisition Tactics
Arrange for Senior Managers to speak to Small Business groups
Form partnerships with local colleges to educate small business
owners on lending programs, etc.
Establish a “Centers of Influence” program with CPAs and
Attorneys
Target select trade shows
Arrange for CEO presentations to small groups of prospects
Create special events to recognize top women, minority
business owners and other niche segments

76. More Low-Cost Acquisition Tactics
Send white papers/articles to prospects focused on
changes/issues in their industry
Manage media relationships to gain exposure
Join the regional Economic Development Committee

77. Retention Tactics
Host Value-added seminars for small businesses
(i.e., “How to better market their businesses”)
Leverage sponsorships to benefit customers
Ask your good customers for referrals
Invite spouses of small business customers to event marketing
Hold networking breakfasts for customers
Utilize in-house Credit Union talent to “educate” customers
Learn from your peers. Find out what’s successful and try it in
your market.

78. Another
Value-Add Idea
Premier America
Credit Union
California Texas
67,554 Members

79. Now That You Asked…
Before every customer call, have your sales force consider the
following questions. If they don’t ask the questions, someone
else will and probably already is.
 Is it easy to do business with me/us?
 How do they perceive my/our customer service?
 Am I taking care of their business and personal needs?
Am I suggesting better or more innovative ways to meet their

present and future needs?
If concern areas are outside my scope of responsibility, am I

alerting the appropriate people so problems can be addressed
and corrected?
 Am I achieving a value proposition?
Am I/we employing all of the Credit Union’s resources for the

benefit of the member?

80. Business Lending CUSO
Options to Build Business Lending:
 Develop a Business Lending Dept.
 Outsource to a third party
 Form CUSO

81. Business Lending CUSO
“Given the opportunity in the market, we believed a
number of credit unions could benefit from offering
business services but may not be able to make the
necessary investment to build capabilities on their
own. Capital limits also played a role, as well as the
ability to participate and diversify a commercial loan
portfolio among a group of credit unions.”
- Doug Fecher
CEO Wright-Patt Credit Union
Dayton, Ohio

82. Cooperative Business Services, LLC (Ohio)
 7 credit union owners
 Focused on underwriting, processing and servicing the loans
Each credit unions assigns a primary contact within the CU for

small business loans
Once a loan is approved, the CUs each fund a certain

percentage of the loan – to diversify the risk of each
 The CUSO provides servicing, receiving payments and
distributing monthly portfolio reports along with loan payments
to each CU
 CU’s participate up to their 12.25% limit
For more info, go to www.cbscuso.com

83. Advantages of CUSO Affiliation

84. Business Lending CUSO
“If we do not fund a loan, we will educate the
borrower on the reasons why and identify the steps
they can take to become a stronger credit. If we
approve a loan, we will try to provide several lending
solutions to the borrower. This level of service
distinguishes us and credit unions in the small
business market.”
- Keith Reed
President/COO
Cooperative Business Services
Dayton, Ohio

86. Business Lending CUSO
Results:
CUSO was profitable in about 1 year
More than $10 Million in outstanding balance within 6 months
Servicing 40 Credit Unions ($20 million to $1.4 Billion)
PORTFOLIO THROUGH JULY 2009
309 Loans
$191,155,295
Avg. Transaction Size: $618,625
Avg. Rate of Return: 6.1943%
‘09 Conversion Rate (Appt. to Close): 87.62%

87. A Resource For You
• Participate with other
states’ CUs
• 6-7 MD/DC Cus
• Lead CU takes min. 10%
• Other CUs do not need
to fit your member
criteria
Example:
$10 million loan in NC
• NC CU took $1 million
• Remaining 9 million
shared between CUs in:
• VA
• NY (2)
• FL
• TX

89. Measurement

95. To what level do you currently utilize
ROI or ROMI calculations in your
marketing planning and/or review?
____%
1. We do not use it at all
____%
2. We have used it, but have either
stopped or use it infrequently.
____%
3. We use it fairly regularly.
____%
4. We constantly measure ROI and use
if for pre- and post- planning
reviews.

100. “In preparing for battle I have
always found that plans are
useless, but planning is indispensable.”
Dwight D. Eisenhower

102. Budget Analysis
Marketing Expenditures
Allocation
Advertising is the most
widely used promotional
tool with public relations
almost a quarter of the
budget
Allocation of Ad
Expenditures
Newspapers remain the
most important mass
medium with $3 out of
every $10
Source: Forrester’s 2006 Joint Association of National Advertisers (ANA) Online Study

103. TV advertising isn’t getting any better…
In the past two years, would you say television
advertising has become...
Base: 133 television advertisers
Source: Forrester’s 2006 Joint Association of National Advertisers (ANA) Online Study

104. …and interactive marketing will benefit
Now that 1 in 10 households own DVRs, which of the following forms of non-television advertising -- if
any -- will you spend MORE on?
Base: 102 television advertisers
Source: Forrester’s 2006 Joint Association of National Advertisers (ANA) Online Study

106. How do you create your Marketing
Budget for the Year?
____%
1. I take last year’s budget and
add/subtract a percentage
____%
2. I base it on the asset size of the
credit union

107. Average Bank Marketing
Budget Expenditures
Bank Assets
in Millions 2000 2005
$(000) $(000)
Less than 25 23 23
25 - 49.9 32 38
50 - 99.9 70 80
100 - 249.9 146 179
250 - 499.9 328 330
500 - 999.9 555 518
1,000 - 4,999 1,507 1,222
5,000 - 24,999 5,279 5370
Source: ABA Bank Marketing Survey Report

108. How do you create your Marketing
Budget for the Year?
____%
1. I take last year’s budget and
add/subtract a percentage
____%
2. I base it on the asset size of the
credit union
____%
3. I come up with a number of
programs that will hit the credit
union’s business objectives and I
justify the costs for each program
____%
4. I take whatever Finance gives me

109. Factors That Affect Your Budget
Strategic Direction of the Credit Union
Community vs. SEG
Market Segments
Market Share
Growth Goals
Orientation towards Marketing and Branding
Media Costs in Your Market(s)
Number of Branches/Markets
Ability to Provide ROI

110. {And YOU can impact it…}

116. Unique, Relevant, Sustainable…

117. Importance of Measuring ROI
 Creates the ability to understand and
communicate the return on your
marketing/BD dollars.
 Helps to better evaluate which programs are
the most effective and which need to be
modified or eliminated
 Assists in getting the resources you need
 Allows you to have an intelligent conversation
regarding your marketing/BD budget
 Prevents you from becoming a Dilbert cartoon

119. Developing Marketing Strategy/Planning
Defining Brand Strategy/Managing the
Brand
3. New
1. Market 2. Competitive 4. Financial 5. Brand 6. Brand 7. Internal
Product and
Assessment
Analysis
Analysis with Development
management
Offer Brand Mgmt.
Creation
ROI
20. Measuring 8. Client
Performance Understanding
Understanding and Managing Clients
Effectively Managing the
Quality Control
Managing the Marketing Function
Segmentation
19. Staff and
Partner
Twenty Activities of 9. Experience
and Service
Management
Marketing
Management
10. Retention
18. Marketing
and Process
Role Definition
Improvement
17. PR and 15. Sales Support Promotions/
14.
13. Marketing 12. Media Mix 11.Operational
16. Product
Internal Comm.
Merchandising
Message Selection
Systems
Pricing and
Creative
Planning
Offer
Executing the Marketing Plan

120.  “We spent $25,000 to sponsor the Hispanic Festival. Did we
get our money’s worth from that event?”
 “I think giving away a free DVD player for a free checking
account is a stupid idea and will never pay for itself.”
 “I do not think that home equity direct mail did us any
good, should we save the money next quarter and
just drop it?”
 “We are projected to sell 46,000 new small business
checking accounts this year. How much could we
sell next year?”
 “I liked our TV commercials, but did they really do
anything for us?”

121. “We spent $25,000 to sponsor the Hispanic
Festival. Did we get our money’s worth from
that event?”

123. How many checking accounts will I need to
generate to pay for the Event Sponsorship ?

127. Generated 374 new checking accounts at a
cost per acquisition of $67 per account
Estimated profit of $55,410 based upon a one
year account profit model, or over a 220%
return on investment
Household profitability of the accounts after a
6 month basis averaged $278
Gained brand exposure to critical market
segment of over 180,000 in a 5 day period

128.  Do as much work after you launch the
program as you did to prepare for it
 Talk to clients, operations, front line
sales personnel, ambassadors
and managers
 Speak to the 5 best performing
branches/SEGs and the 5 worst
performing branches/SEGs
 The numbers alone do not always
tell the story

129. “We are projected to sell 46,000 new small
business checking accounts this year.
How much could we sell next year?”

130. “Doing the same things over
and over again and expecting
different results.”

132. Projections estimate a 15% increase in 2005

133.  A new offer to give away a $50 Office Max
gift card for the first quarter
 Our prospect direct mail budget increases
from 1.5 million pieces to 2 million pieces
 Our member direct mail budget increases
from 300,000 to 500,000 pieces
 We add 10 new sales people

134. “I think giving
away a free
DVD player for a
free checking
account is a
stupid idea and
will never pay
for itself.”

136. What is the lift required on Checking
Account Sales to pay for a DVD Player?

137. “I do not think that
home equity direct
mailing did us any
good. Should we
save the money
next quarter and just
drop it?”

139.  Recover the cost of your marketing
expenses, or achieve a 100% ROI
 Recover your expenses and produce a 20%
return on your investment, or a 120% ROI
 Double the return on your marketing dollars,
or produce a 200% ROI

140. Mailed 120,000 Home Equity Pieces and
Tested $100 Home Depot Offer

141. “I liked our TV commercials, but did
they really do anything for us?”

142. Recommend
Retain
Acquisition
Advocate
Communication

WOM Driven
Commitment
Cross-
Sales
 “Rational” and
“emotional” Positive
elements
Purchase
Experience
Active
Consideration
Consider
Seek Retention/
Information
Accept
Understand /
Value
Growth
Information
Experience

Aware
Driven
Unaware
“Rational” and

“emotional”
elements

143. Examine both sales and awareness level changes

144. “If marketing
were easy,
we would all be
making
minimum wage.”

146. A Perspective
CEO, Senior Management, and Board
 Leveraging capital
 Expense vs. investment
 Support vs. lead
CEOs and CFOs typically grow up on
the “numbers side” of banking
 Speak their language
 Think like your CEO/CFO
 Gain buy in
 Discuss assumptions

147. Survey of Fortune 500 Companies
What is the most important skill
for a CEO to have for the future
growth of their organization?
Financial
14%
Marketing
52%

148. ur ned
t
Re
ue
Val Strategic
Optimizing
Emerging
time

151. With what frequency do you
(or a member of your Marketing function)
attend the credit union’s regular
Asset/Liability Committee (ALCO) meetings?
____%
1. I’m a member. I attend regularly
____%
2. I’ve attended, but am not a member
____%
3. I’ve never attended

152.  Know your “Champions”
 Use the analytics at your disposal
 Find information
 Talk with the front-line
 Dissect the competition
 Share what you learn
 Use your MCIF to drive information and
automate some processes
 Create ambassadors
 Engage all staff

153. Be your best promoter
And most vocal critic
Share the progress
Weekly
Monthly Recaps
Program End
Post-mortem

155.  Marketing’s total impact
 Margin earned
 Non interest revenue
 Average balances
 Cross selling
 Promotional expense
 Quantity and quality measurements

158. Summary
 Use facts and data to create intelligent
conversations with your managers
 Build a strong partnership with your
Finance Group
 Results for programs work best when both
the field and Marketing have ownership
 Pilot programs are a great tool for testing
new ideas and creating realistic
projections
 Always keep your results close to you

159. ROI Wrap-Up: Key Take-Home Points

161. Wrap-Up: Key Take-Home Points

163. From the MarketMatch Team…
Thank
Thank
You!
You!
Feedback welcomed, please email me at:
egagliano@marketmatch.com