By Ray Birch
MADISON, Wis.—The explosion in digital banking and the evolution in consumer behavior has one CU here convinced traditional card offerings just don’t cut it any more—that’s why its offering free food delivery to college students who use its card.
The move, the $3.3-billion UW Credit Union adds, is also a necessity as the pandemic forces financial institutions to become much more targeted—and unique—with their card offerings.
As CUToday.info has reported, UW Credit Union members are now being offered free delivery on EatStreet orders purchased with their UW Credit Union-issued credit or debit card. The promotion runs through Dec. 31 and can be applied at more than 15,000 EatStreet-connected restaurants, many of which are locally owned companies that have been impacted by COVID-19.
“The era of digital banking is really here now,” said UW Credit Union CMO Anne Norman. “Each fall thousands of new students come to the University of Wisconsin. But now they come to the campus with their bank in their pocket—their big bank from their hometown. So why would they want to do business with the local credit union?”
Getting Creative
That’s why credit unions must get creative with their card promotions and also address how consumer behavior is changing from the pandemic, Norman stated.
EatStreet has seen a 305% increase in orders since March, with average delivery fees ranging from $0.99 to $4.99, according to UWCU. To participate, members download the EatStreet app or visit eatstreet.com, after which they can enter the address to see the restaurants available for delivery in a particular location. Once the order is placed, paying with a UW Credit Union debit or credit card activates the $0 delivery—it will not work if Apple Pay or Apple Wallet is selected, Norman noted.
“I think credit unions have always needed to look for new ways to make their credit and debit cards relevant, but we're in a super competitive age now,” she said. “You might think that having no-fee ATMs is differentiating, but it's not.”
Beyond Table Stakes
Norman contends the growing use of digital combined with how the pandemic is changing consumer behavior make many traditional card offers simply table stakes.
“I think it's important for a credit union to promote their credit and debit cards in new ways,” she said. “I believe you need to add perks of membership that someone can only get at the credit union. You have to add something else that’s driving choice.”
The partnership between the two Madison-based organizations is the first of its kind for EatStreet, Norman said, adding that consumers are always looking for that next best card perk.
“We just can't expect consumers to give up their credit and debit usage for the same thing over and over again,” she said. “If I'm always earning a higher rate because I'm swiping my card so many times, after a year that consumer is going to ask ‘what have you done for me lately.’ So you need to be always adding new features and perks to keep the offerings fresh and card top of wallet.”
Getting ‘Really Stale’
Norman believes brands can get “really stale” if the credit union is not thinking of new ways to connect with members and respond to their unmet needs.
Anne Norman
“The pandemic has presented so many ways for us to meet members where they are, and I think free food delivery is one that sort of hits that sweet spot now for many, especially college students,” Norman said. “You’re stuck at home and your ability to dine out is essentially limited to takeout. We are saying, let us help with this new behavior.”
UW Credit Union was talking to EatStreet before the pandemic hit and had hoped to break the offer sooner.
“But we hit the pause button so both organizations could focus on the crisis at hand and deal with issues each of our organizations were facing,” Norman explained. “But once we got to a more stable place with the pandemic, we started talking again and we really rushed to get this out for the fall and students going back to school.”
Evaluation Ahead
Norman said it is too early to gauge the response to the offer, especially as students just began arriving on campus in September. She said UWCU will closely evaluate the offer that’s slated to run through December, given the pandemic is expected to linger on well into 2021 if a vaccine is not developed.
UWCU pays a small fee to EatStreet, but the partnership, Norman said, is “really an in-kind marketing relationship—EatStreet markets this in their channels, and we do in ours.”