Kristi Edgar
ORLANDO—What led to American 1 CU growing new credit cards by almost 10% last year, taking plastic balances to almost one-fourth of the CU’s total loan portfolio?
A comprehensive and “aggressive” approach to card marketing, says VP Kristi Edgar.
“At our credit union, we may be a little different than other credit unions, in that a primary loan growth area for us is credit cards,” said Edgar. “Our credit card interest (income) was $3.3 million in 2015, and 36% of members have our card. Credit cards are 22% of our total loan portfolio, which is much larger than a typical credit union.”
The $285-million American 1 offers variable and fixed rate cards, as well as rewards. American 1 also emphasizes instant issue, which Edgar said is a strong selling point.
On its website the credit union states: “When you apply for an American 1 Visa you can get your card and have it activated in just minutes with Instant Issue . . . No more waiting ten days for the card in the mail – you will have your new card in hand before you leave the branch.”
High-Tech Options
Despite all of the high-tech payment options emerging, what still makes cards attractive, contends Edgar, is being able to choose a customized image for the plastic.
“We offer more than 100 images for our cards,” said Edgar during CSCU’s Solutions 2016 annual conference here. “We feel if members have an image on their card that they like they keep it more top of wallet.”
The Jackson, Mich.-based American 1 has a strong sales culture and staff are incented to promote cards.
“We don’t wait for our members to ask us about our credit cards. When we approve someone for a loan we approve them for the credit card, as well, and let them know they can have the card right then,” she said.
Know The Competition
The sales team, too, knows the competition, which Edgar said makes it easier to spot opportunities to promote a credit card during member conversations, and relate the savings to the account holder.
“We created a comparison booklet for staff that lists the rates and fees of competitors,” said Edgar. “They know what they are up against. So when they hear a member say they love their Discover card, they can tell them how much they can save in interest and fees by coming over to our card.”
Other credit card tips from Edgar:
- Develop cards that your team wants to sell. “They need to feel they are offering the best solution or they won’t effectively sell.”
- Besides building a sales culture, make sure the sales team has strong marketing support. “For your sales teams to be successful, your marketing team has to be on board, which means both teams have to have similar goals.”
- Track and measure goals daily. “We update branches each day on where everyone stands. You can’t hit goals unless your team, every day, knows where they stand and therefore what they need to do.”
- Hold strong sellers up as examples. “We bring our top sales people up in front of each staff meeting. That kind of recognition gives them extra incentive to sell.”
- Get member feedback. “We hold member focus group meetings each month. One of the messages we have heard clearly from focus groups is members want checking rewards, and many care little about rate.”