By Ray Birch
DUBUQUE, Iowa—Saying there are better ways to engage members than the year-end patronage dividend, Dupaco Community CU has turned to an annual six-month “promotion” it believes is more effective.
The $1.5-billion Dupaco is in the second year of its “Thank-Use” campaign. Nearly 49,000 of the CU’s 102,000 members received their share of more than $3.17 million on International Credit Union Day this year. To get their money, members had to have an active checking account and were rewarded based on their deposit and loan balances, and the number of times they used their debit card.
The campaign, which included radio, TV, newspaper and billboards—as well as social media and the CU’s website—ran from April until International Credit Union Day in October.
While payout rules are typical of many patronage dividend programs, the key difference is that the effort is shorter term and more focused, leveraging a lot of promotion, and changing slightly every year, explained Dupaco Chief Marketing Officer David Klavitter.
“Not that we are against the annual patronage divided, but we felt this would be a different way to communicate it and increase excitement. We feel a campaign that is finite, working over a shorter period, gives us greater continuity and does a better job of emphasizing the rationale for the campaign,” said Klavitter, who noted that the payout was determined on member business from the start of the year.
‘Dupaco-ized’
The credit union, too, wanted to be different and stand out among local financial institutions.
“We wanted to ‘Dupaco-ize’ it,” said Klavitter. “We looked at many giveback models and felt that the annual patronage dividend seemed like a long-term commitment, and most important, did not bring as much value in the minds of members. I don’t think annual patronage dividends are as effective as the Thank-Use campaign in showing members the value of being part of a cooperative and that they have to get involved with the credit union—use it—for everyone to be successful.”
Klavitter said results for the campaign last year and this season indicate that Dupaco is building a stronger emotional connection with members and engaging them more in the credit union.
“By our survey results, members are telling us they feel a greater sense of ownership and that they understand they need to use the co-operative for everyone to benefit—the members, the credit union and the community,” said Klavitter.
Time will be the true test of whether a campaign works better than traditional patronage programs, said Klavitter, adding that the performance numbers the credit union wants to move are heading in the right direction.
7% Net New Members
He said engagement numbers measured by Raddon annually show members are more connected now and the CU’s Net Promoter Score is rising. Dupaco is also growing net new members by 7% annually.
“But we are experimenting here, kind of dipping our toes in the water in a different way,” said Klavitter.
What Klavitter said Dupaco really likes about a campaign is that it can change every year. He said the theme can change as can how the program works, including the requirements. New to the campaign this year was a collective swipe goal,” in which cardholders were challenged to use their Dupaco debit and credit cards a total of 12.5 million times. If members reached that total, which they did, each received an additional $40.
Klavitter said that is a perfect example of how a campaign can generate greater engagement than the annual giveback and also provide the CU with greater flexibility.
“So as group, a lot of our members worked together and a lot of social media buzz was generated,” he said. “We had members encouraging others to use their Dupaco cards.”
Annual Decision
Whether Dupaco continues Thank-Use will be an annual decision, said Klavitter, who added that it will likely be back next year with possibly some slight changes.
“The members like it. The credit union likes it. And the board likes it,” said Klavitter. “Members are responding to it and they are getting more engaged.”