COLUMBUS, Ohio—Telhio Credit Union is not only paying consumers to join the CU, it’s offering to make a second payment if they stay around.
In the process, the promotion is attracting higher net-worth members who are taking multiple products, TCU is reporting.
Telhio is paying new members $50 when they join and open one of the CU’s three checking accounts, and then is making an additional $100 donation to one of three local charities if the member remains on board for 90 days or longer.
Angela Krile, marketing consultant for the $548-million CU, said one of the reasons the “Telhio Challenge” was introduced last February was to prevent promotion shoppers from just taking the deal of the day and then moving on when something else better comes along.
“We also created the campaign because we know the credit union delivers great service and has great products,” she said. “So we are saying not only will we pay you $50 because we are so confident you will see that, we know that if we give you another reason to stay with us that in 90 days we will prove to you that this is where you should bank.”
Charity Tie-In
Tying the promotion to local charities was done, too, to attract consumers committed to their communities and who like keeping their money with a local financial institution.
“Take ownership of where your money goes,” the promo says. “As a Telhio member, your money stays in your community, building houses, building businesses and fueling the dreams of your neighbors.”
Krile emphasized that the offer is not just about bringing in new members.
“We are really looking at the quality of the member,” she said. “You always have member churn, but what we want are members who are committed to us, who become ambassadors for the credit union. They take ownership in the CU and partner with us. This is not growth for growth’s sake. It’s about growing with like-minded members who care about their credit union and their community and want to keep their money local.”
The results, said Krile, make clear the strategy is working.
“We are seeing the members who join the credit union through the campaign taking more products and having higher balances than new members who have joined in the past, and new members who are joining now and not taking advantage of the offer,” Krile said.
160 New Members In 90 Days
During the first three months of the campaign Telhio attracted 160 new members who stayed with the CU for the 90-day trial and longer, netting $16,000 for charity.
“We think we are bringing in people who are looking for a better place to do their financial business,” said Krile.
Based on member feedback, the credit union plans to increase the new member award this year by $50. Krile said that the offer is running indefinitely.
“We thought we’d make the deal one for one—the member gives $100 and gets $100,” she said. “Members told us that they are excited we are doing something for the community, but they’d like to get more back too.”
The campaign tells the community that if they try Telhio for 90 days, “we’ll make you a believer.”
“We put our money where our mouth is and it’s working,” said Krile.