Post on 29-Mar-2015
Right Size Solutions For Any Size Bank®
Card Marketing for 2013
Turn Your Program into a Revenue Machine
Scott Broughton
Senior Vice President, ICBA BancardScott.Broughton@icba.org
• 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?
Right Size Solutions For Any Size Bank®
www.icbabancard.org
Right Size Solutions For Any Size Bank®
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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
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
Right Size Solutions For Any Size Bank®
Hyperlinks
Right Size Solutions For Any Size Bank®
Hyperlinks
Other passwords required on sites outside ICBA Bancard
Right Size Solutions For Any Size Bank®
Hyperlinks
Right Size Solutions For Any Size Bank®
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
Right Size Solutions For Any Size Bank®
Ask Yourself
Are you carrying one of your bank’s credit cards today?
If not, why aren’t you? Community Bank
Right Size Solutions For Any Size 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
Right Size Solutions For Any Size Bank®
So, what’s next?
• How does your program stack up?
• What areas do you need to improve?
Right Size Solutions For Any Size Bank®
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”
Right Size Solutions For Any Size Bank®
Acquisition Channels – Section 5
Right Size Solutions For Any Size Bank®
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
Right Size Solutions For Any Size Bank®
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
Right Size Solutions For Any Size 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
Right Size Solutions For Any Size Bank®
Scenario Two
“Our bank has added a lot of new accounts in recent years but our cardholders are not using our card”
Right Size Solutions For Any Size Bank®
Activation, Usage & Retention – Section 6
Account Acquisition Activation Usage Retention
Right Size Solutions For Any Size Bank®
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
Right Size Solutions For Any Size Bank®
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.
Right Size Solutions For Any Size Bank®
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.
Right Size Solutions For Any Size Bank®
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.
Right Size Solutions For Any Size Bank®
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.
Right Size Solutions For Any Size Bank®
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
Right Size Solutions For Any Size Bank®
Scenario Three
“What are other banks doing to promote and grow their credit card programs?”
Right Size Solutions For Any Size Bank®
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.
Right Size Solutions For Any Size Bank®
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
bancard@icba.org
Questions?