DALLAS, TX ? For Abilene Teachers Federal Credit Union, driving usage is the goal of its credit card program, and aggressive promotion is its strategy. The north Texas institution works closely with its card processor of more than 20 years, TNB Card Services, on frequent, highly targeted promotions.
Credit union President James Boyd said that unlike some credit unions, he isn?t trying to build up the number of cardholders among the almost entirely education-focused membership of 21,000.
?New cards are such a cutthroat business,? Boyd said. ?I have come to accept that we are not a huge financial institution. That means we need to work our niche as best we can. We need to make sure that the people who do have our cards use them. That is where I have focused.?
In working with TNB?s marketing programs since 1999, Abilene Teachers FCU has seen impressive growth in its card portfolio. For instance, from 1999 through 2004, outstanding balances increased by 35 percent while the number of accounts was flat. Also, the average credit line climbed 47 percent, due largely to successful use of the automatic credit line increase program from TNB.
?This program works really well,? Boyd said. ?You take accounts that have had no problems and no delinquency, and give them credit line increases even if they don?t ask. We do this a couple of times a year, increasing the credit lines and then sending a congratulatory letter to the members.?
Abilene Teachers FCU regularly runs holiday and summer special interest rate promotions, consistently issues convenience checks, and does twice yearly balance transfer offers. That is in addition to the automatic credit line increases and a heavy mix of local advertising and promotion to gain visibility.
Boyd said the key for Abilene Teachers FCU in leveraging TNB?s turnkey marketing programs most successfully is making sure the staff uses the programs and services internally before they are announced or made available to members.
?Then when we launch it for members, we have an advantage. It?s much easier to answer questions when we have used something ourselves,? he said.
Rollie Penn, executive vice president of TNB Card Services, said Abilene Teachers FCU is a great example of an effective marketing organization.
?They have done a tremendous job of choosing among our turnkey marketing initiatives and products for the ones that best fit their membership,? Penn said. ?Besides the automatic credit line increases, they have used special rate promotions on summer travel, for instance, which has a great appeal to the Abilene Teachers FCU membership. They really know how to reach their members.?
