card marketing for 2013 turn your program into a revenue machine
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Scott Broughton Senior Vice President, ICBA Bancard [email protected]. Card Marketing for 2013 Turn Your Program into a Revenue Machine. Agenda. Highlights of the New Manual How to use it Using the Manual for creating a marketing plan Additional Resources Questions?. - PowerPoint PPT PresentationTRANSCRIPT
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?
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www.icbabancard.org
Right Size Solutions For Any Size Bank®
Log In
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
Right Size Solutions For Any Size Bank®
Marketing Manual – How to use it
Right Size Solutions For Any Size Bank®
Navigating the ManualSave the Manual in Adobe PDF
Navigating the Manual
Navigation made easier using:
• Section headings
• Hyperlinks
• Glossary
• Extra reference
materials
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Hyperlinks
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Hyperlinks
Other passwords required on sites outside ICBA Bancard
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Hyperlinks
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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
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Ask Yourself
Are you carrying one of your bank’s credit cards today?
If not, why aren’t you? Community Bank
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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
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So, what’s next?
• How does your program stack up?
• What areas do you need to improve?
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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”
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Acquisition Channels – Section 5
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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
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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
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Other Acquisition Channels
• Pre approved Direct Mail• Website and Bill Pay sites• Social media• DDA Statement Inserts• Promotions and other campaigns. • Emails• Community events
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Scenario Two
“Our bank has added a lot of new accounts in recent years but our cardholders are not using our card”
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Activation, Usage & Retention – Section 6
Account Acquisition Activation Usage Retention
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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
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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.
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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.
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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.
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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.
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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
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Scenario Three
“What are other banks doing to promote and grow their credit card programs?”
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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.
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Reference Tools, con’tLocated in-document and on the Manual’s landing page
Customizable:• Letters• Surveys• Spreadsheets
Turn-key Communications
