The Future of CU*BASE Tiered Services

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The Future of CUBASE Tiered Services

• Tiered Services Development Focus Group
• October 9, 2008

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Agenda

• Tiered Services Then and Now
• Tiered Services the new GOLD Standard (sneak
  peek)
• A Look at Your Peers
• Aggregating Tiered Services Statistics
• Brainstorming
• Projects Already in the Pipeline
• Your Wish List
• Member Rewards Collaborative
• Marketing Your Tiered Services Program
• What else is on your mind?

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Tiered Services Then and Now
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Tiered Services Then and Now
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The New GOLD Standard for Tiered Services
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A Look at Your Peers

• Aggregating Tiered Services Stats for all CUs

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Aggregating Tiered Services Statistics

• The cliché is, dont recreate the wheel, but its
  more than that...how do we use a decade of
  learning about relationships and relationship
  management techniques so that everyone sees the
  value?

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Aggregating Tiered Services Statistics

• We plan to add a new feature that creates an
  aggregate data file once a month
• To begin, will include only online CUs, but we
  can eventually export a file to self processors
  for their use as appropriate to be determined
• Compare your Tiered Service numbers to a group of
  peers or even a single peer
• Choose a peer group based on asset size, number
  of members, and household scoring choice
• Group stats by asset size groups (0-10M,
  10M-25M, etc.) and member size groups

This isnt just a Tiered Service
proof-of-concept this is an example of the type
of network view we could have across the board
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Brainstorming

• Whats on your wish list?

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Projects Already in the Pipeline

• Extending Tiered Services to the member in Its
  Me 247 online banking...deepening the visible
  relationships with members
• Part 1 What points did I get and how did I get
  them?(in beta now for Fall 2008 release)
• Part 2 What rewards do I get for those points?
• Part 3 Redeem my points!

View original prototype
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Other Projects in the Pipeline

• From the PLM

not displayed in Monitor online
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Lets BrainstormEnhancements to Consider

• More things to score?
• Presence of email address (as long as its not a
  wrong one!)
• Transaction points (credit card usage, debit card
  usage, etc.)
• Shared branch usage
• What else would you like to be able to track?
• Other config changes?
• Move OTB or online credit card to Goal 3
  (Lending) instead of Goal 4 (Self Service)?
  (This will have a BIG impact!)

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Lets BrainstormEnhancements to Consider

• Rewards to add?
• Waive minimum balance service charges (account
  service charges, transaction service charges) via
  Tiered Services
• Do you understand how you can already do this via
  a Tiered Service Marketing Club?
• Rate benefits, too!
• Automated enrollment/unenrollment
• Summarize the cost benefit to the member each
  month
• As a Gold Level member, in August you saved
  30.00 in waived check cashing fees, 13.00 in
  waived corporate check fees...
• Report to member in online banking
• Include on statements? Or might this take up too
  much real estate?
• What other rewards would you like to offer?

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Lets BrainstormEnhancements to Consider

• New technique allowing for unlimited product
  codes to be selected

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Lets BrainstormEnhancements to Consider

• PFI points
• Can include unlimited DIVAPLs but are there other
  things to consider here besides share account
  types, like a mortgage?
• Measuring active vs. just having an account?

Is PFI as a separate goal/measurement still
relevant? The blended concept of savings, loans,
service selections, and automation might better
describe PFI
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Lets BrainstormEnhancements to Consider

• A separate Tiered Services configuration for your
  business accounts
• Configurable option to exclude master type MO
  from regular Tiered Service scoring, giving you
  three choices
• Score them same as individuals (like now)
• Avoid scoring them altogether
• Score them according to a separate point system
• Points only? Or would you also want separate
  rewards? Different point groups / tier levels?
• What about the Household scoring option? If a
  household contains an organization, should it be
  ignored? In all cases, or just according to this
  new config flag?

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Lets BrainstormEnhancements to Consider

• Lifetime Points
• Grant starter lifetime points to new members
  prior to first months scoring
• Fix on adding/subtracting lifetime points for
  individual members
• Cap on total lifetime points?
• Rolling year (or two or three) instead of
  lifetime accumulation?
• Redeeming lifetime points while opening accounts,
  working in online banking...?

Is the Lifetime Points concept a focus group all
by itself?
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Member Rewards Collaborative

• An Xtend Member Reach and Partners in Practice
  Initiative

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Member Rewards Collaborative

• A member reward program run by the CU, based on
  whatever the CU wanted and that CUBASE could
  count
• So if you wanted to combine Tiered Services
  points (lifetime) with points for credit or debit
  card usage and then grant redemption rewards, you
  could
• If you wanted to just count credit and debit card
  purchases and then grant redemption rewards, you
  could
• If you wanted to just count Tiered Services
  points and then grant redemption rewards, you
  could
• If you wanted to count anything we could code
  (e.g., total deposits from anywhere, total bills
  paid, etc.) and then grant redemption rewards,
  you could

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Member Rewards Collaborative

• The advantage to the credit union is that the
  programs would be native or internal to their
  operations
• Instead of a third-partys distribution channel
  (web, call center, etc.) and notification
  channels (special statements, special statement
  merges, web, email, etc.), CUAnswers and the
  credit union could modify their existing channels
  and avoid additional handling costs for these
  services that make the reward programs so
  expensive

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Member Rewards Collaborative

• To make this valuable, we need to develop some
  sort of redemption catalog that combines credit
  union service discount options with the ability
  for members to get third-party value items as
  well
• A natural for stored-value cards
• I believe that we will have an audience for a
  "do-it-yourself" rewards software options, but I
  believe we will have an even bigger audience for
  CUSO coordinated reward services
• FIS is not offering these programs without wide
  margins...we can offer them without any perceived
  margins at all

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Gividends

• Gividends Rewards Management (GRM) a new
  collective effort and processing initiative
  brought to you by Xtend and its partners at
  cuasterisk.com
• GRM is a new effort by the Xtend team to work
  closely with the credit unions who utilize the
  CUBASE core processing platform for their member
  rewards programs
• Combines the Tiered Service feature set with a
  member rewards fulfillment capability that allows
  credit unions to
• Merge transaction reward points with core member
  relationship points
• Market the advantage of credit union rewards
• Manage the redemption of member points for credit
  union and general marketplace value on demand

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Marketing Your Tiered Services Program

• A Complete Tiered Services Marketing and
  Implementation Package
• Brought to you by TAG and Partners in Practice

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Tools You Already Have

• Breaking down the Tiered Services Implementation
  Guide...more than just the how to
• Is Your Membership Moving Toward the Bulls Eye?
  case study and overview to make the case with
  your staff and board
• Step-by-step checklist for implementing a Tiered
  Service program
• PowerPoint presentation A Changing Culture
  for presentation to your staff

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Tiered Services A New Look

• For credit unions looking to launch or re-launch
  a meaningful rewards program rollout
• 2 parts to the program
• A Start up or Re-Launch Kit
• A Strategic and Creative Marketing Package

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Tiered Service Marketing Package

• Start-Up or Re-Launch Kit
• For first-time CUs as well as those wishing to
  understand, improve or enhance their current
  reward programs
• A Tiered Services for Dummies workbook (name
  pending) that will help interpret and simplify
  the technical reference manual
• A rollout/implementation calendar, including the
  regular and periodic work that is recommended to
  successfully support a program
• Training materials for all stages of the program
• The internal marketing necessary for
  a successful program

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A Tiered Services for Dummies Workbook

• The friendly workbook will compliment (and
  decipher) the technical reference manual
• It will interpret and simplify the set up for
  easier decision making
• It will provide worksheets and examples
• It will help credit union leaders/coaches
  understand the internal changes that are needed
  to ensure a successful program
• It will provide examples of how to integrate the
  program with all of the credit unions product
  marketing
• It will include examples and recommendations
• Pre-launch and post-launch details, etc.  

FOR DUMMIES
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Implementation Calendar

• A calendar template for project managers to
  modify and use from planning to implementation
• Recommendations of approximate timing for all
  major milestones, such as
• Fee changes
• Board approval
• Training
• Launch
• Regular and periodic work that can be done to
  push the program

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Training Materials

• PowerPoint presentation to the managers and staff
  explaining
• Strategic objectives
• Set up of the Rewards program
• Roll out
• Staff cross selling training
• How to talk with the members explaining the
  program and how they can get the most out of it

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The Marketing Kit

• Package will include
• New Name and Logo artwork
• Newsletter articles and statement messages.
• Posters, direct mail letters and postcards,
  inserts and web banners
• Specialty items, ad artwork, banners etc
  available for group purchasing
• A Comprehensive Marketing Package will be
  available through CUBlitz
• CUs will benefit from group printing and mail
  services
• A series of marketing pieces for the launch (or
  re-launch) period

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The Strategic Creative and Branding Package 

• Proposed Name
• Name will compliment current CUA products
• Creative Branding
• The asterisk will be used to illustrate the
  points they can accumulate for rewards!

(Customization for creative will also be
available)
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Next on the Rewards Horizon

• Marketing Clubs
• These clubs are an essential part of the Tiered
  Services program success
• To be created and available through CUBlitz
• Youth
• Teens
• Young Adults
• TAG will develop the creative and start-up kit
  for the marketing clubs working with the CUA
  team
• Sample of what is to come Youth Group Marketing
  Name and Logo

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What else is on your mind?