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Hottest Credit Card in Town David Stark, President Rosemarie Siems, Electronic Services Manager Bull’s Eye Credit Union

Hottest Credit Card in Town David Stark, President Rosemarie Siems, Electronic Services Manager Bull’s Eye Credit Union. Bull’s Eye Credit Union Wisconsin Rapids, WI 54495-1087 93,611,001 Assets 20,726 Members 9,627,699.44 Credit Card Portfolio 7,781 Credit Card Accounts.

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Hottest Credit Card in Town David Stark, President Rosemarie Siems, Electronic Services Manager Bull’s Eye Credit Union

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  1. Hottest Credit Card in Town David Stark, President Rosemarie Siems, Electronic Services Manager Bull’s Eye Credit Union

  2. Bull’s Eye Credit Union Wisconsin Rapids, WI 54495-1087 93,611,001 Assets 20,726 Members 9,627,699.44 Credit Card Portfolio 7,781 Credit Card Accounts

  3. WhyDid We Become ‘The Hottest Credit Card in Town’? • Threat of Selling Portfolio • Decrease in Outstanding Balances • Decrease in Finance Charge Income • Decrease in Interchange Income • Decrease in Credit Card Accounts • Competition

  4. Declining Credit Card Income

  5. Declining Outstanding Balances

  6. Declining Credit Card Accounts

  7. HowDid We Become ‘The Hottest Credit Card in Town’? • Contact with Certegy Representative • Credit Card Holder Survey • Brainstorming Sessions • Developed Plan and Timeline with Certegy • Implementation • Marketing • Training

  8. Plan Strategies • Review current policies to increase line of credit limits and receive Board Approval • Submit application to Certegy for Scorecard and Direct Mail • Review ‘Gold and Classic’ portfolio and transfer who qualify to ‘Gold and Platinum’ • Update/Revise current applications and disclosures • Create a Marketing Plan • Train staff on new credit card options/program

  9. Plan StrategiesContinued • Implement ‘Skip A Payment’ program • Utilize Beacon scoring for monthly reissue • Set up new Bill Codes • Set up Direct Mail Campaign to existing members without a credit card • Set up Direct Mail Campaign to non-members in chartered area • Transfer cardholders to upgraded cards prior to rate conversion

  10. Researched Local Competition

  11. Top 5 Cardholder Survey Results • Local Service • Low Interest Rate Card • No Annual Fee • Reward Points or Cash Back • Balance Transfer Rate

  12. Old Program Offered MasterCard and Visa Cards in each program Platinum 9.9% APR Gold 11.75% APR Classic 12% APR New Program Platinum 7.9% APR With 3.9% Balance Transfer Rate for 6 Months Visa Gold 9.9% APR With Scorecard Bonus Point Rewards MasterCard Gold 9.9% APR With Scorecard CashBack Rewards Classic 14% APR Credit Card Program

  13. Click here for details! Click here for details! Click here for details! Click here for details! 7.9% A.P.R. Visa/MasterCardFIXED 9.9% A.P.R. FIXED with Scorecard Bonus 9.9% A.P.R. FIXED with Scorecard Cashback 14% A.P.R.Visa/MasterCard FIXED 25 Day Grace Period Includes Travel Bonusesand Gifts Rewards Earn $$$ based on Purchases 25 Day Grace Period 25 Day Grace Period 25 Day Grace Period Web Site Hottest Card In Town

  14. Balance Transfer Program • Special Rate on Platinum Cards only • 3.9% APR for 6 Months • Minimum transfer amount of $50.00 • Brochure with form to fill out • Our Credit Card Department • Sent out checks • Sent cardholder letter with additional checks • Posted cleared items to credit card accounts

  15. New Account Goals not Achieved

  16. Balance Transfer Results

  17. Campaign Ending Balances

  18. Staff Rewards • Dinner for those who assisted with the upgrade process • Lunches as Account Balance growth targets were achieved • Steak Fry for all Staff when Balance Goal was achieved

  19. Marketing - $80,000 Advertising-Media Direct Mail Website Drive up stuffers Lobby displays Cross-Selling Campaign Processing - $78,900 Account /Cards reissued Plastic and Disclosures Scorecard Balance Transfer Direct Mail set up Cost Justification 185 New Accounts Increase in Balances 4.5 Million Increase in Interchange Income Increase in Finance Charges Increase in Fee Income Maintain balances Campaign Costs

  20. Current Balances

  21. Current Program Strategies • Card Reissue Review – use Beacon Score for increases and upgrades • Skip A Payment • Platinum 4 Times a Year • Gold 3 Times a Year • Classic 2 Times a Year • 4.9% APR Balance Transfer Rate for 6 months • Increase Member Penetration – Cross-Selling • Fast Track Card Activation Program

  22. Future Program Goals • 50% Member Penetration • Maintain 11.5 Million Dollar Portfolio • 5% Annual Increase in Outstanding Balances

  23. Questions? Rosemarie Siems rsiems@becu.net David Stark dstark@becu.net

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