Amoco Federal Credit Union's Cross-Selling
Program is Part of Their Culture
As Amoco Federal Credit Union embarked on a
cross-selling promotion between auto loans and
credit cards, the effort was as much about the
credit union's culture as it was about generating
new business. On both counts, it has been a success.
The Texas City, Texas, credit union, with 47,000
members and $362 million in assets, has been a debit
and credit processing client of TNB Card Services
for 29 years. It serves some 90 select employee
groups. The cross-selling promotion idea, which
started in early 2005, grew from an internal desire
to enhance the culture of the 68-year-old
institution.
"One of the most important elements of this
promotion was to encourage our staff to realize that
cross-selling is essential to meeting member needs,
as well as the performance goals of the credit
union," says Shawn Bailey, president and CEO of
Amoco Federal Credit Union.
In what Bailey describes as a "relationship
pricing" promotion, any credit cardholder gets
a quarter-percent discount on an auto loan if they
have a credit card with the credit union or apply
for one as they seek the loan. If they already have
a credit card or a debit card, they get free online
bill payment privileges.
"We utilize this as a way to increase credit
card penetration and offer loyalty discounts,"
Bailey explains.
Confident of its card products, the credit union
views the promotion as one that benefits both
members and the credit union.
"We have very good credit and debit card
products and we know that it serves our members well
to have them in their hands. Also, as we look at the
current environment and the competitiveness of auto
loans, we feel that getting more unsecured loans on
the books benefits the credit union
financially," Bailey says.
The promotion, the first of its kind for Amoco
Federal Credit Union, does not involve staff
incentives in any way. It is part of the credit
union's effort to meet its key performance
objectives in terms of loan growth, number of
members, and deposits.
In the first six months of the promotion, it
yielded 530 new credit card accounts, or 5%
increase, so it was clearly a success by the
numbers. How about in the effect it has had on the
business culture?
"Our initial objective was to introduce
employees to the sales and service culture, and we
have been successful. We have definitely seen
improvements in the willingness of our employees to
cross-sell products," Bailey says. He adds that
because the credit union's credit cards are solid
and easy to sell, they have been a great vehicle to
introduce the cultural shift.
Amoco Federal Credit Union sees this promotion as
its "flagship" marketing effort, one that
will continue for the foreseeable future. The credit
union also participates in turnkey marketing
programs through TNB Card Services, and does
internal promotion through its newsletter and
website as well.
Asked what advice he has for other credit unions
considering cross-selling promotions, Bailey says
that designing them from the member's perspective is
most important.
"You should focus on serving and satisfying
the members. That should be the highest priority of
any program," he says. "Having a good
product is important, but it is critical for
employees to understand why you cross-sell. They
need to see the value enhancement for the
membership, and know that they are benefiting the
member. It isn't cross-selling per se, but providing
a service and a good product to the members, which
will benefit them."
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