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Credit Unions Leverage Branches to Grow Cardholders

Conversations about credit cards are becoming more common between credit union employees and members, as credit unions take a more proactive approach to empowering their employees to cross-sell card products.

Just like deposit accounts, credit cards are becoming a relationship product, making the branch a very effective sales channel for card products. Credit unions that invest in employee training and cross-sell their card products within the branch are seeing rapid growth in the number of card accounts, which is in turn driving a similar increase in balances. These types of programs are not just for big credit unions, but can work well for credit unions of all sizes.

At Harris County Federal Credit Union of Houston, an investment in employee training followed by an in-branch promotion boosted its new card accounts 383 percent over the same three-month time period a year earlier.

Leveraging the positive national media coverage credit unions were receiving, the $100 million credit union promoted its card aggressively to let members know just how great a product it is. To support the promotion, the credit union initially quizzed employees to learn how much they knew about the card, then implemented a "Credit Card Cram" training program designed to educate employees about the value of its card compared to the competition.

To encourage employees to proactively reach out to members, employees were rewarded with $5 for every approved card application. At the end of the promotion period, the employee with the most applications approved was rewarded with paid time off. The winning employee generated 25 approved applications.

To draw members' attention to the card product within the branch, Harris County Federal launched TNB Card Services' One Hot Summer Promotion, which included everything the credit union needed to create a dialogue with members. Playing off the summer theme, the credit union turned the branch into a summer playground. Members were offered fresh lemonade from a lemonade stand, hot buttered popcorn, games of miniature golf and ring toss, and more. The effort helped increase awareness of Harris

County Federal's card products, generating an abundance of new cardholders for the credit union.

"Training alone made a significant difference in growing our card accounts," said Vicki Squires, executive vice president, Harris County Federal Credit Union. "Branch employees initiated meaningful conversations with members about the benefits of an HCFCU credit card, successfully tapping into our existing member base."

She added, "The promotion was entertaining and fun for employees and members. It took minimal effort to manage and delivered a significant return. The branch is definitely an effective vehicle to acquire new cardholders."

Space City, a $27 million credit union also based in Houston, knew its card was one of the best around, so it launched MasterCard Madness, an internal campaign designed to challenge its staff to double their monthly average of new card accounts.

"The CARD Act has presented so many opportunities," said Nikki Moore, vice president operations of Space City Credit Union. "We didn't want to be left out of the game, so we have made cards a priority and trained our staff accordingly to give them the confidence they need to sell the card to members."

Through training and a cash incentive of $10 per application, within 30 days employees brought in nearly six times as many new card accounts as the typical monthly average. To thank employees, the credit union installed a new 50-inch flat-screen HDTV in the break room for them to enjoy.

"Selling a card product doesn't have to be complicated. Once our employees understood the value of our card, it was easy for them to sell it to members," said Moore. "The branch has proven to be a strong sales channel for our card and we intend to broaden our in-branch promotion efforts."

The branch is one of the most cost-effective marketing channels for electronic payment products. Acquiring cardholders through the branch costs $20 to $50 per cardholder according to national averages, compared with direct-mailed pre-approved credit card offers, at a cost of $90 to $110. To learn how to train your employees effectively and turn your branch into a sales channel for your card products, contact TNB Card Services at 800-422-0733.

March 2010