C O N N E C T

ACH Data Results Marketing CASE STUDY

Intelligent solutions to connect with members, all under one roof.

Taking the High Road to Lending SuccessACH data maximizes Northern CU’s ROI with over $14 million in new auto loans

Northern Credit Union, headquartered in Watertown, NY, does not operate an indirect lending program and noticed they were losing out on auto loans signed at dealerships and with other financial institutions. They wanted to show the value of maintaining a credit union loan and launched a successful ACH auto loan recapture campaign that was run twice in 2016 and again in 2017! The third time really was a charm, as it drove their total new lending to over $14 million, far exceeding their initial goals!

While the three campaign phases shared most elements, streamlined criteria helped keep campaign costs low with a significant return on investment. Partnering with Synergent Direct Marketing Services, they were able to launch a cost effective ACH data mining campaign that included reports to analyze and target members based on core data extracts.

“Marketing budgets are contingent [upon results] and can be trim,” shared Alexa Bennett, Marketing Manager for Northern CU. “We have to show the worth of the dollars invested every single time.”

This campaign continued on a trajectory of success that went above and beyond, receiving significant attention in a CreditUnions.com article and a coveted Marketing Association of Credit Unions Award, which recognizes outstanding marketing achievements within the credit union industry.

“[Receiving the MAC Award] was validation for how many members we were able to help and how much money we were able to put in their pockets each month,” stated Bennett. “I think for us it’s not so much about the recognition, but about how many members we were able to help. A lot of people don’t realize they can refinance their auto loan. They think it is cumbersome or they’re locked into it. That was the biggest takeaway our loan officers had.”

RESULTS

$80Return on investment

16%Total increase in

loan amount

$1,681,154Two year interest earnings

PHASE ONE POSTCARD

<<NAME>>, for a limited time you can get a bonus $100 Gas Gift Card when you get an auto loan with Northern Credit Union! • Rates starting at 2.95% APR*

• Flexible terms up to 72 months

• No payments for 30 days

• Apply and sign online

Here’s a payment scenario example:

Sample Balance: APR starting at: Term: Monthly Payment:

<<Balance>> 2.95% 72 months <<Payment>>

Want to find out how much you can save on your auto loan?

Call: 315.782.0155Click: www.mynorthern.com/loansaverVisit: any of our seven branches

*APR = Annual percentage rate. APR and loan pending underwriting, vehicle age, credit review and is subject to approval. Payment scenario is solely an example. The as low as rate of 2.95% APR is based on a term of 72 months for qualified borrowers. Maximum term of 72 months. No down payment required. $10,000 minimum loan required to obtain gift card. Northern Credit Union loans are ineligible. Federally Insured by NCUA. Offer ends July 31, 2016 and can end at anytime. 5.19.16.

Get a bonus $100 Gas Card!

120 Factory StreetWatertown, NY 13601

PresortFirst Class

U.S. Postage

PAIDFarmington, MEPermit No. 30

We might be able to lower your payment if you refinance your auto loan with us. Plus, get a $100 Gas Gift Card and no payment for 30 days!

<Christopher,> want to be happier than a dog on a road trip?

$1,887,351Life of loan

interest earnings

$14M+In new lending

Northern CU Auto

Loan ACH Campaign

Seeking to increase their auto lending portfolio, Northern CU offered members incentives such as cash back, rates as low as 2.95%, the option to apply online, and flexible terms up to 72 months. Synergent assisted Northern CU by providing custom ACH data mining and targeted data extract programming to focus their marketing efforts on their target audience. Synergent Direct Marketing Services also assisted with the postcard production and mailing, utilizing graphics designed in-house at Northern FCU.

Because Northern CU also is a user of Symitar’s Episys® Core Processing Platform through Synergent, our in-house data mining team can use core data in generating a targeted marketing list. “It was very rewarding to help Northern CU identify and act upon so many unique marketing opportunities in their member transactional data,” stated Jen Braziel, Synergent Data Mining Specialist.

The Offer • Cash back or a free gas card

• Rates as low as 2.95% APR

• Flexible terms up to 72 months

• Applications in-branch or online

Target Audience

Phase One ➡ 3,453 targets

• 2,975 members making auto loan

payments to other financial

institutions

• 205 members who paid off their

Northern CU auto loans in the last

90 days

• 273 members who were due to pay off their Northern CU auto loans in the

following 12 months

Phase Two ➡ 3,268 targets

• 3,215 members making auto loan payments to other financial institutions

• 53 members who paid off their Northern CU auto loans in the last 90 days

Phase Three ➡ 3,047 targets

• 2,988 members making auto loan payments to other financial institutions

• 59 members who paid off their Northern CU auto loans in the last 90 days

<Name>, for a limited time you can get $75 BONUS CASH when you get an auto loan with Northern Credit Union! • Rates starting at 2.95% APR*

• Flexible terms up to 72 months • Apply 24/7/365 online or over the phone • Get instant approval with most loans completed in less than 24 hours • Sign documents via email using Docusign • Automatically schedule loan payments

Want to find out how much you can save on your auto loan? Call 315.782.0155, click www.mynorthern.com/loansaver or visit any of our branches.

*APR = Annual percentage rate. APR and loan pending underwriting, vehicle age, credit review and subject to approval. Payment scenario is an example. 2.95% APR is based on a term of 72 months for qualified borrowers. Maximum term of 72 months. $7,500 minimum loan required to obtain bonus. Bonus is deposited in member’s checking account within 30 days of loan funding. Cash bonuses are non-combinable with offers. Offers are non-transferable. Member is responsible for completing a MISC1099 for tax purposes on incentives. Current NCU loans are ineligible. Federally Insured by NCUA. Offer ends 12/31/16 and can end at anytime. 9.9.16.

120 Factory StreetWatertown, NY 13601

Check out all the offers you can drive away with when you bank with Northern Credit Union.*** • $25 CASH BONUS when you open a Northern Credit Union ATIRACredit Platinum Rewards Mastercard • $150 CASH BONUS when you get a Home Equity Loan or Line of Credit • $250 CASH BONUS when you get a Mortgage with our Home Lending Team

Here’s a payment scenario example:

Sample Balance: APR starting at: Term: Monthly Payment:

<Balance> 2.95% 72 months <Payment>

EXIT ONLY

Low APR. Low payments. Quick approval and closing.

Plus, get $75 BONUS CASH.*

on new or refinanced auto loans.

Rates starting at

2.95%APR*

PHASE TWO POSTCARD

Alexa BennettAVP of Marketing and R&D Northern Credit Union

LOCATIONS: WATERTOWN, ADAMS,

GOUVERNEUR, LOWVILLE, CARTHAGE,

AND EVANS MILLS, NEW YORK

ASSETS: $226,707,906

MEMBERS: 29,173

“I told my lending department if they ever need more loans or are short on goals at any point, just let me know and we will get the Synergent engine going again – it’s like turning on a faucet for lending.”

“It definitely helped streamline. Previously, when we had this idea, we knew the data existed but we didn’t know how to get to it. Synergent was compiling the (PowerOn) report, but we used to have to manually go through and ID the companies/financial institutions. Having Synergent was great because they were like “here’s a list... here is the ROI analysis, which was a much more efficient and easy process.”

“We looked into other recapture programs, as there was an element of credibility, but we didn’t pursue because they couldn’t customize their own copy. It also didn’t have that personal touch.”

“It’s like an extension of your marketing department. They are so easy to work with.”

FOR MORE INFORMATION

Contact our Direct Marketing Service Representatives

1-800-341-0180 marketingservice@synergentcorp.com

synergentcorp.com

Return on Investment

Phase One: $395,309 Phase Two: $696,531 Phase Three: $589,314

Phase One: $104,498 Phase Two: $110,948 Phase Three: $84,532

Phase One: $7,610 Phase Two: $5,007

Phase Three: $7,092

Estimated total, first two years

interest earnings on all auto loans during

campaign period

$1,681,154 $299,978 $19,709

Estimated total, first two years

interest earnings on all auto loans

tied directly to the postcard and

email list

Total campaign cost

ResultsOver $14 million in combined new auto loans during all three of the three-month campaign periods.

• 879 new auto loans totaling $14,032,535

• 174 auto loans tied back to the mailing list totaling $3,039,204

· Phase One ➡ 63 auto loans ➡ $921,290

· Phase Two ➡ 66 auto loans ➡ $1,244,612

· Phase Three ➡ 45 auto loans ➡ $873,302

Additional ResultsPhase Two of the campaign brought in non-auto lending!

• 97 non-auto loans tied back to the

mailing list totaling $1,328,045

· 67 personal loans ➡ $457,186

· 21 home equities ➡ $781,401

· 5 recreation loans ➡ $88,193

· 4 overdraft lines of credit ➡ $1,265

<Name>, for a limited time you can get up to $100 BONUS CASH when you get an auto loan with Northern Credit Union! • Rates as low as 2.95% APR*

• Flexible terms up to 72 months • Apply 24/7/365 online, mobile or over the phone • Get instant approval with most loans completed in less than 24 hours • Sign documents via email using DocuSign®

• Automatically schedule loan payments

Want to find out how much you can save on your auto loan? Call 315.782.0155, click www.mynorthern.com/loansaver or visit any of our branches.

*APR = Annual percentage rate. APR and loan pending underwriting, vehicle age, credit review and subject to approval. Payment scenario is an example. 2.95% APR is based on a term of 72 months for qualified borrowers. Maximum term allowed will vary depending on year of vehicle. Bonus is deposited in member’s checking account within 30 days of loan funding. Offers are non-transferable. Member is responsible for completing a MISC1099 for tax purposes on incentives. Current Northern Credit Union loans are ineligible. Federally Insured by NCUA. Offer ends 3/31/17 and can end at anytime. DocuSign is a registered trademark of DocuSign Inc. 1.24.17.

120 Factory StreetWatertown, NY 13601

• Get a loan under $10,000 and get a $50 cash bonus • Get a loan over $10,000 and get a $100 cash bonus

Here’s an example payment scenario:

Sample Balance: APR starting at: Term: Monthly Payment:

<Balance> 2.95% 72 months <Payment>

PresortFIRST CLASSU.S. Postage

PAIDFarmington, MEPermit No. 30

Plus, GET UP TO

$100BONUS CASH*

Drive your loan to Northern!New or refinanced auto loans starting at 2.95% APR*.

PHASE THREE POSTCARD

WE ARE COMMITTED TO PROMOTING

THE GROWTH OF CREDIT UNIONS

THROUGH SERVICE EXCELLENCE

IN THE DELIVERY OF QUALITY

PRODUCTS AND SERVICES.