OBJECTIVE: Improve participation; be the primary financial institution.

Situation Profile:

Database research of over 14 million member households nationwide conducted by Raddon Financial Group (RFG) in the fall of 2004 shows that 25 percent of the total cross-sales over the life of the member relationship occur within their first three months of membership with the credit union, and 50 percent occur within the first year.

To increase the participation of new members, develop deep product relationships and ideally be established as a member's primary financial institution, credit unions must act quickly. HawaiiUSA Federal Credit Union recognized this industry issue and implemented a turn-key matrix marketing program through Matrix Manager^TM.

Utilizing the Matrix Manager^TM program HawaiiUSA was able to segment its new households based on life stage thereby offering the products and offers specific to the needs of each segment. In addition, the credit union had the flexibility of modifying the copy and/or offers every month to stay current with rates, disclosures and other fluctuating variables. With such specific targeting, the credit union was reaching out to new members with messages that were relevant and attention grabbing rather than general and uninteresting. This resulted in deeper relationships and better buying position per household.

Results:

After two years of consistent marketing and hard work, HawaiiUSA’s average household profitability reached $185 and their RFG Performance Index¹ rose to 78 as of March 2006.  With an RFG Performance Index of 78, HawaiiUSA is now in the top 3% of credit unions for this metric.

HawaiiUSA’s new household matrix campaign is ongoing and a fundamental piece of their overall marketing strategy. With regular campaign tracking, HawaiiUSA sees a jump in several key statistics for their new households after six months:

HawaiiUSA also utilizes the regular campaign tracking to monitor each cycle of the campaign.  Since inception, HawaiiUSA’s new household matrix campaign has performed remarkably:

New Household Campaign
July of 2004 to July of 2006

¹ The RFG Performance Index is a measure developed through Raddon Financial Group’s CEO Strategies Group program.  On a scale of 1 to 100, the RFG Performance Index measures a credit union’s relative performance to its peers based on earnings, growth, efficiency, margins, non-interest income and balances.

At RFG we take pride in providing research-based solutions that are effective and easily implemented. We are dedicated to exceeding our client’s expectations and ensuring that they receive value from their relationship with RFG.

For more than 20 years, Raddon Financial Group (RFG) has provided primary research and marketing solutions to the financial services industry. Headquartered in Lombard, IL, RFG provides research solutions to over 1,000 financial institutions nationwide.