Winner of 2 national Achievement in Marketing Excellence (AIME) awards:
(1) Coordinated Campaign Category
(2) Direct Marketing Category
Challenge
In the midst of a rising rate environment, selling a 5-year term deposit was going to be difficult. In the months leading up to this campaign, we had a promotion for a standard 5-year term deposit. Because most investors were looking for 1 to 2-year products, there was little demand for the 5-year commitment.
Strategy
To overcome this challenge, a unique 5-year product was developed (Elevator730). Since the market was looking for short-term investments, the Elevator730 had the same rates as our promotional 1-year and 2-year products, plus it was fully redeemable in the first two years (first 730 days). Pairing promotional 1 and 2-year terms, with the 5-year Elevator730, provided our staff a solid opportunity to up sell the 5-year product. Since it was fully redeemable in the first two years, the remaining 3 years were marketed as free rate insurance. The advertising campaign focused on the popular 1 and 2-year products (what people were looking for). Once investors contacted us, we would try to up sell them to the 5-year product (what we needed to sell).
Results
In 3 months, the term deposit portfolio had net growth of $21 million. During this period, the branches processed 1147 term deposits totaling $45.3 million (for just $36,000 in advertising).
Direct Mail
Member Segmentation
The direct mail piece targeted members who only had term deposits with the credit union. Since these members were not doing their daily banking with us, we concluded that there was a high probability that they had investment money outside our credit union. Since these members only had term deposits with us, there was also no risk that we would reprice existing Community Savings deposits (chequing and savings accounts). As a result, this segmented group of members represented pure deposit growth.
The direct mail piece targeted members who only had term deposits with the credit union. Since these members were not doing their daily banking with us, we concluded that there was a high probability that they had investment money outside our credit union. Since these members only had term deposits with us, there was also no risk that we would reprice existing Community Savings deposits (chequing and savings accounts). As a result, this segmented group of members represented pure deposit growth.
Results
The $2,400 direct mail budget attracted over $5.9 million in new deposits. The “I Miss You” direct mail had a success rate of 12% and accounted for 22% of the investors and 13% of the total term deposits purchased.
