AUSTIN, Texas–Just because a credit union’s original common bond no longer exists, doesn’t mean a CU no longer has one, according to one CU that has rekindled that bond by saying “Thank USE.”
Dupaco Credit Union was founded to serve meatpackers at the Dubuque Packing Co. Like so many companies, it eventually faded and closed, and the CU responded first by expanding to other SEGs and eventually to a broad statewide field of membership.
“Over time, we diluted our de facto marketing niche,” said Dave Klavitter, director of marketing with Dupaco, in remarks to the CUTomorrow Conference. “We needed to look for ways to create those stronger emotional bonds with members.”
To increase those bonds Dupaco was seeking to move members up the emotional connection pyramid, from “Indifferent” to “Patron” to “Fans” to “Devoted.”
“We know devoted members are more engaged in the cooperative,” said Klavitter. “We are a cooperative. So often we think about innovating around consumer finance. But we decided to look at how can we innovate around being a cooperative.”
Problem Statement
To address that, Dupaco CU looked to respond to this problem statement: How might we responsibly leverage our excess capital to develop a stronger common bond between Dupaco and its current or potential members?
It started that process with its board, then management team, and then selected people in the CU. The board wanted whatever program the management developed in response to be differentiated, sustainable, simple, action oriented, and reward members for “doing the right thing” with Dupaco, according to Klavitter.
“Before we did anything, we asked what were we doing now,” he added.
What Dupaco was seeking to do, explained Klavitter to the CUTomorrow Conference was achieve these objectives:
- Strengthen bond with most loyal members
- Reinforce cooperative differentiator
- Increase number of active checking accounts
- Reward longevity (initial goal of 2016)
- Moving Dupaco cards to top of wallet/revenue (2017 goal)
- CUSO Services (2018 goal)
- Improve credit scores (2018)
Campaign Emerges
From that came Dupaco’s “Thank USE” campaign that builds on that common bond of cooperation among members by rewarding members for the amount of business they do with the credit union.
In addition, there is also a “group goal” for the membership, which this year is about improving credit scores. If 83% of Dupaco CU’s members participating in its Credit Score Tracker remain at the same score or improve into the next credit score band they will receive $10 each.
The “defined characteristic” Dupaco has identified for participation in the Thank USE program is an active checking account. “That is the key that unlocks members’ participation in Thank USE,” explained Klavitter.
Members who visit the Thank USE site can see a green bar that reads “Active Checking Detected.” The Thank USE site also demonstrates for the member how they can earn a bigger reward.
A ‘Big Deal’
To further reinforce the concept of cooperation, Dupaco pays out its Thank USE Rewards on International Credit Union Day.
“We make a big deal out of (the payout),” said Klavitter, noting it uses both mass media and social media to spread the word about the amount of money being returned to members.
Thank USE has been having the desired effect. In 2016, there were 46,040 eligible members. By 2018, that number had grown to 56,000. The total giveback in 2018 is projected to be $3.12 million.
Klavitter said Dupaco’s research has shown Thank USE is driving member behavior in the desired direction. In 2016, 56% of member said they had not changed any behaviors in order to earn a larger Thank USE reward. By 2017, that figure had declined to 21%.