Get More Out ofYour ATM NetworkWinning Strategies to Increase Financial Institution Success Through the ATM Channel

Introduction……………………………………………….….….… ATMs and Branding…………………………….……………….. ATMs and the Locator………………………………….…..... ATMs and Awareness…………………………….……….……. ATMs and Surcharges…………………………….……….….. Conclusion……………..…………………………….……….……

About Us .……………..…………………………….……….…….

TABLE OF CONTENTS:

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Introduction:Consumers and the ATM

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Despite the continued increase in non-cash payments, ATMs still remain an important remote location option for financial institutions.

ATM Facts:

• There are approximately 6 billion cash withdrawals annually at ATMs since 2009. (U.S. Census Bureau, 2012)

• ATMs are the third most preferred banking method, behind internet banking and branches. (ABA, 2011)

• 74% of consumers consider the convenience of ATM locations when selecting a financial institution. (Pitt, 2011)

• There are over 900 monthly transactions per U.S. ATM. (Statistics Brain, 2012)

However, while ATMs still hold draw for current and potential customers/members, few institutions are utilizing the machines to their full potential as a complete marketing venue. Fewer still are considering how they can integrate the ATM into their already existing marketingand awareness campaigns.

This ebook will introduce new and innovativeopportunities for meshing the financial institution’smarketing into a cohesive strategy.

Bank and Credit Union executives site a “lack of marketing investment” as a top challenge, which ultimately reduces their organizations’ opportunity for success, according to The Financial Brand’s 2012 Bank and Credit Union Marketing Survey. (CORD, 2012)

The very basic ATM branding can be an effective and inexpensive way to develop brand recognition and increase awareness, the key aspects of a cornerstone marketing strategy. In fact, ATM advertising is 65% less expensive and 200% more effective than direct mail, according to NCR, Inc. (CORD, 2012)

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Chapter 1:ATMs and Branding

Get More Out of Your ATM

Custom branded ATM wraps can call a large amount of attention to the ATM but it is the topper that is best positioned to really draw attention. Participants in the KLCI Research Group’s Trends and Futures research study reported a 15% increase in transaction volume on machines with a topper.

Newer, digital screens and video toppers may even

give some institutions an extra edge as the report also indicates that full-motion

graphics draw more attention to advertising images. (Kulik, 2002)

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Participants reported a 15% increase in transaction volume on machines with a topper.”Source: KLCI Research Group Trends and Futures research study, 2002

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Chapter 2:ATMs and the Locator

While Google, Bing and other search engines have made it far easier for anyone to find a specific financial institution online, people still need to be able to find a branch or ATM in the physical realm. That’s why locators are typically the second most visited pages on a financial institution site, just behind e-branch login. The real difference lies in the type of visitors. Those immediately routing themselves to the e-branch are almost always current members or customers. Locator visitors, on the other, are just as likely to be potential clientele as current.

With this in mind, it is clear that a successful locator is essential to any financial institution’s success, in overall marketing and at the ATM. “Financial

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institutions are faced with a big marketing challenge,” says Jason Green, of CodeGreen. “You want to tell the world about all of your convenient locations without sending anyone away from your trusted site or to a surcharge-free network's third-party application. You want something that fits seamlessly into your website to show one compelling aggregate view of all those locations in a single intuitive and interactive search and mapping tool that is always up to date. It is no wonder many institutions find providing an online locator challenging but it is something customers and members have come to expect of any institution or retailer.”

A truly successful locator passes three major tests:1) It is easy to find on the website.2) It is easy to target the desired location or area.3) It is easy to get directions.(Nielson, 2008)

More robust locators may even include images of branch or ATM locations, hours of operation or listings of location events. Off-site retail ATM locations may include retailer hours, links to retailer ads, circulars or even exclusive coupon deals available for the retailer partner only through ATM use or download through the locator page.

Get More Out of Your ATM

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…[users] encountered difficulty with the locators 32% of the time.”Source: Nielson Norman Group Store Finders and Locators Study, 2008

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Despite the demand for comprehensive locators on company websites, a Nielson Norman Group study found that “…[users] encountered difficulty with the locators 32% of the time.” (Nielson, 2008) Providing an easy-to-find and simple-to-use locator showcases the institution’s focus on convenience while keeping current and potential customers/members on the branded website, maximizing brand and messaging exposure.

The brand’s locator can easily direct website users to the nearest ATM or branch but the same is true of these physical locations. Institutions withcomprehensive locators can reinforce the convenience of their wide network by including advertising for their interactive locator tool at branches and on ATMs, encouraging current and potential clientele to see just how convenient the bank or credit union really is.

Get More Out of Your ATM

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Chapter 3:ATMs and Awareness

Colorful, custom branding and interactive locators are not the only ways to integrate ATMs into a financial institution’s overall brand strategy. The growing popularity of smartphones and the mobile web provides the opportunity to combine physical and virtual campaigns that much easier.

Many financial institutions have had great success building Facebook fans and introducing new programs through online campaigns such as scavenger hunts. A Florida Credit Union campaign was named a Credit Union Journal “Best Practice” winner in 2011 with an online hunt that resulted in an additional 1,600 Facebook fans and an estimated 100 new members. “We

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wanted something that was viral and fun and interactive that could engage people who weren’t members,” explained marketing manager Laura Richard of CFE FCU. (Passman, 2011)

Interactive is the key. Members and non-members of CFE FCU could participate in an online activity that encompassed their website and Facebook page, rewarding participants with entries into drawings for a variety of attractive prizes.

Enter the Quick Response, or QR code. These unique codes can be generated online and placed at ATM and branch locations via wraps, toppers, screens or other signage. Customers and/or members can capture these codes on their smartphones and be directed to a Uniform Resource Locator, or URL.

This URL can be populated with unique marketing content or redirect to main institution features such as loan calculators, new account options or the institution’s Facebook page. As part of a scavenger hunt, like CFE FCU’s campaign, the QR code would link to a page registering the participant’s visit to the appropriate ATM, allowing for another game piece or clue to move onto the next location…whether it be real or virtual.

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We wanted something that was viral and fun and interactive that could engage people who weren’t members.”Source: In the Hunt, Credit Union Journal, 2011

Get More Out of Your ATM

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Chapter 4:ATMs and Surcharges

It has become standard practice in today’s society to expect ATM fees at foreign ATMs. However, consumers have been finding ways to avoid these surcharges since they were first implemented.

A recent Synergistics Research survey reported 76% of respondents said they should not have to pay ATM fees or that fees are too high. However, a survey by Bankrate.com reported the average cost to use a bank ATM is $2.40 and the most common fee is $3.00. (CUNA, 2012) Over half of those polled in a survey for Ally Bank said they would rather search for a fee-free ATM and would even go out of their way to use a machine in their network. (CUNA, 2012)

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Get More Out of Your ATM

To assuage the concerns of customers and members many financial institutions have taken to providing surcharge payback options on some of their accounts. Consumers using non-institution ATMs are charged a fee during the transaction but are reimbursed by their institution up to a certain dollar amount per month. What many of these banks and credit unions don’t realize is that they are sitting on a marketing goldmine.

Financial institutions have easy access to the information telling them where and when an ATM transaction has taken place with each of their customers and members. What if, instead of simply paying back the surcharge, the institution followed up with a targeted email, text message or postcard showing the surcharged consumer where they can find nearby surcharge-free options? Consumers have already said they will go out of their way for a network ATM. Save the institution hundreds, if not thousands, of dollars in reimbursements while reinforcing the brand’s convenience image.

Take it a step further. Include a link in that email or text taking targeted consumers straight to the institution’s robust and interactive locator page, already loaded with the pertinent location information!

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76% said they didn’t think they should have to pay a fee or that the fee amount was too high.”Source: Synergistics Research survey regarding ATM fees, 2012

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Conclusion:ATMs and Marketing OptionsATMs offer a variety of marketing opportunities for the financial institution. Whether the institution opts to simply implement colorful branding wraps and toppers to increase transaction numbers or invest the time and effort to create a fully integrated marketing plan, ATMs can provide unique marketing options for banks and credit unions alike.

With today’s new and improved technology and trends getting more out of the financial institution ATM channel has never been easier!

CodeGreen, LLC is dedicated to creating innovative marketing products and

web technology services designed specifically for

the needs of Credit Unions and Independent Banks – all at a surprisingly affordable cost.

CodeGreen delivers a variety of simple and customizable tools to assist financial institutions with inbound lead creation, marketing and increased ROI. CodeGreen’s wide range of products and services have won awards throughout the financial industry and include lead generation and intuitive mapping and locator tools like LoanSaver™, BranchMap™, Web Hunt™ and much more!

Contact CodeGreen at 301.652.1245 or find us online at www.codegreen.org

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About Us:ATMs and So Much More!

Welch ATM is an independent ATM company founded in 1973. With over three decades of ATM industry experience

and service, we have developed relationships with over 1,000 financial

institutions and major retailers.

Welch provides an array of ATM solutions including ATM placement, branding, co-branding, managed services and more. We strive to provide excellent customer service and work individually with each client to develop strategies that best fit their goals and needs.

Welch ATM is one of the largest ATM companies in the United States and a leader in the industry, managing over 19,000 ATMs nationwide.

Contact Welch ATM at 636.536.3030 or find us online at www.welchatm.com

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Sources:U.S. Census Bureau (2012). Noncash Payments by Method of Payment and ATM Cash Withdrawals 2006 and 2009. Table 1184. Retrieved from: http://www.census.gove/compendia/statab/2012/tables/12s1184.pdf

ATM Fact Sheet (2012). 2012 ABA Issue Summary. Retrieved from: https://baft.org/aba/documents/MediaGuide/ABAMediaGuide2012.pdf

Pitt, Richard (2011). Evolving Options for ATM Outsourcing: Pooling Can Keep Your Channel Competitive. [white paper] Retrieved from: http://www.firstdata.com/downloads/thought-leadership/Evolving-ATM-Options-WP.pdf

Statistic Brain (2012). ATM Machine Statistics. [listing] Retrieved from: www.statisticbrain.com/atm-machine-statistics/

CORD Financial Services (2012). Benefits of ATM Branding and Advertising for Your Bottom Line. [white paper] Retrieved from: http://www.atmmarketplace.com/whitepapers/5621/benefits-of-atm-branding-and-advertising-for-your-bottom-line

Kulik, P. (2002). ATM Advertising: Beating a Dead Horse? [article] Retrieved from: http://www.atmmarketplace.com/article/136631/atm-advertisting-beating-a-dead-horse

Nielson, J. (2008). Store Finders and Locators. [article] Retrieved from: http://www.nngroup.com/articles/store-finders-and-locators/

Passman, A. (2011). In the Hunt. Credit Union Journal. Retrieved from: http://www.cujournal.com/issues/15_47/in-the-hunt-1011304-1.html?zkPrintable=true

CUNA (2012). Consumers Say ATM Fees Are Too High. [article] Retrieved from: http://www.cunatechnologycouncil.org/news/4736.html

If you’re interested in learning more about how ATMs, Locators and other Innovative Marketing Tools can increase Brand Awareness for your financial institution contact us today!

Contact Us Today!http://bit.ly/ContactWelch