Right Size Solutions For Any Size Bank ® Card Marketing for 2013 Turn Your Program into a Revenue Machine Scott Broughton Senior Vice President, ICBA Bancard

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 ®

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Right Size Solutions For Any Size Bank ® Marketing Manual – How to use it

Right Size Solutions For Any Size Bank ® Navigating the Manual Save the Manual in Adobe PDF

Navigating the Manual Navigation made easier using: Section headings Hyperlinks Glossary Extra reference materials

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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 banks credit cards today? If not, why arent you? Community Bank

Right Size Solutions For Any Size Bank ® Assessing your Program Step back and look at your current program Is 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, whats 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. s 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 AcquisitionActivationUsage 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 dont ignore. Low to medium users represent the best opportunity to increase usage.

Right Size Solutions For Any Size Bank ® Usage Factors 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 ® Retention Look 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 expiring 4.Promotional rate expiring 5.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. , website and social media strategies.

Right Size Solutions For Any Size Bank ® Reference Tools, cont Located in-document and on the Manuals landing page

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