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Hottest Credit Card in Town David Stark, President Rosemarie Siems, Electronic Services Manager Bulls Eye Credit Union.

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Presentation on theme: "Hottest Credit Card in Town David Stark, President Rosemarie Siems, Electronic Services Manager Bulls Eye Credit Union."— Presentation transcript:

1 Hottest Credit Card in Town David Stark, President Rosemarie Siems, Electronic Services Manager Bulls Eye Credit Union

2 Wisconsin Rapids, WI ,611,001 Assets 20,726 Members 9,627, Credit Card Portfolio 7,781 Credit Card Accounts

3 Why Did We Become The Hottest Credit Card in Town? Threat of Selling Portfolio –Decrease in Outstanding Balances –Decrease in Finance Charge Income –Decrease in Interchange Income –Decrease in Credit Card Accounts –Competition

4 Declining Credit Card Income

5 Declining Outstanding Balances

6 Declining Credit Card Accounts

7 How Did We Become The Hottest Credit Card in Town? Contact with Certegy Representative Credit Card Holder Survey Brainstorming Sessions Developed Plan and Timeline with Certegy Implementation Marketing Training

8 Plan Strategies Review current policies to increase line of credit limits and receive Board Approval Submit application to Certegy for Scorecard and Direct Mail Review Gold and Classic portfolio and transfer who qualify to Gold and Platinum Update/Revise current applications and disclosures Create a Marketing Plan Train staff on new credit card options/program

9 Plan Strategies Continued Implement Skip A Payment program Utilize Beacon scoring for monthly reissue Set up new Bill Codes Set up Direct Mail Campaign to existing members without a credit card Set up Direct Mail Campaign to non-members in chartered area Transfer cardholders to upgraded cards prior to rate conversion

10 Researched Local Competition

11 Top 5 Cardholder Survey Results Local Service Low Interest Rate Card No Annual Fee Reward Points or Cash Back Balance Transfer Rate

12 Credit Card Program Old Program Offered MasterCard and Visa Cards in each program Platinum 9.9% APR Gold 11.75% APR Classic 12% APR New Program Platinum 7.9% APR With 3.9% Balance Transfer Rate for 6 Months Visa Gold 9.9% APR With Scorecard Bonus Point Rewards MasterCard Gold 9.9% APR With Scorecard CashBack Rewards Classic 14% APR

13 7.9% A.P.R. Visa/MasterCard FIXED 9.9% A.P.R. FIXED with Scorecard Bonus 9.9% A.P.R. FIXED with Scorecard Cashback 14% A.P.R. Visa/MasterCard FIXED 25 Day Grace PeriodIncludes Travel Bonuses and Gifts Rewards Earn $$$ based on Purchases25 Day Grace Period Click here for details! Web Site Hottest Card In Town

14 Balance Transfer Program Special Rate on Platinum Cards only 3.9% APR for 6 Months Minimum transfer amount of $50.00 Brochure with form to fill out Our Credit Card Department Sent out checks Sent cardholder letter with additional checks Posted cleared items to credit card accounts

15 New Account Goals not Achieved

16 Balance Transfer Results

17 Campaign Ending Balances

18 Staff Rewards Dinner for those who assisted with the upgrade process Lunches as Account Balance growth targets were achieved Steak Fry for all Staff when Balance Goal was achieved

19 Campaign Costs Marketing - $80,000 Advertising-Media Direct Mail Website Drive up stuffers Lobby displays Cross-Selling Campaign Processing - $78,900 Account /Cards reissued Plastic and Disclosures Scorecard Balance Transfer Direct Mail set up Cost Justification 185 New Accounts Increase in Balances 4.5 Million Increase in Interchange Income Increase in Finance Charges Increase in Fee Income Maintain balances

20 Current Balances

21 Current Program Strategies Card Reissue Review – use Beacon Score for increases and upgrades Skip A Payment Platinum 4 Times a Year Gold 3 Times a Year Classic 2 Times a Year 4.9% APR Balance Transfer Rate for 6 months Increase Member Penetration – Cross-Selling Fast Track Card Activation Program

22 Future Program Goals 50% Member Penetration Maintain 11.5 Million Dollar Portfolio 5% Annual Increase in Outstanding Balances

23 Questions? Rosemarie Siems David Stark


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