Unlock Revenue Potential: Revive stale offers
By Catherine York Powers, CEO, Constant
August 12, 2024
Credit union executives face a range of challenges: high interest rates, stagnant deposits, regulatory pressure on fees, and tight liquidity. There is no silver bullet, but credit unions that diversify their revenue streams while enhancing operational efficiency can thrive in this market.
While many credit unions already offer a range of products and services, like post-origination loan protection products, these offers often sit stale on websites. To breathe new life into these offerings, credit unions should deploy tools that automatically trigger relevant offers based on member or loan status – within digital banking.
Breathing New Life Into Existing Offers
Credit unions typically offer a diverse array of products, including fee-based services, investment options, insurance products, and various lending solutions. However, without a proactive strategy to promote these offerings, they can become overlooked or underutilized. Often, these products remain static on websites, waiting for members to discover them or relying on loan officers to manually present them.
Enhanced Automated Offers
Automation tools like Income Builder from Constant transform how these products are presented. Rather than relying solely on random, context-free promotions or static website ads, Constant's Income Builder triggers offers based on key member actions and statuses. For instance, if a member skips a payment or reverses force-placed insurance, the platform can automatically present relevant offers – such as loan protection or auto insurance coverage – at the optimal time. This approach ensures that offers are relevant and timely, driving higher engagement and adoption.
The Power of Contextual Promotion
Research shows that targeted offers are far more effective than generic, random promotions. According to a study by HubSpot, targeted offers result in a 15% higher conversion rate compared to generic ones. This is because offers that align with a member's current situation or needs are more compelling and relevant. For example, if a member is paying off a loan due to refinancing, an automated campaign can present the option to extend the loan and lower the member’s payment to retain them. The key is working with providers that have real-time access to member data and can engage where members are. With 80% of members using digital banking, credit unions should maximize value by boosting engagement through this channel.
Integration With Self-Service Platforms
Moving loan management workflows into digital banking significantly enhances both member engagement and operational efficiency. These self-service workflows can streamline the process for members to discover and act on offers. A prime example is digital loan management with Constant. Traditionally, members needing assistance with a due date change, payment skip, payoff quote on letterhead, or hardship assistance, for example, had to call or visit a branch. By automating these workflows within digital banking, credit unions can empower members to self-serve and present them with relevant products based on actions members take or the status of their loan. Some of these products like payment protection or an extended warranty provide a valuable safety net during financial difficulties and should be offered beyond point of sale and during the loan life.
Maximizing Revenue Potential
Credit unions can revitalize their existing product offerings by augmenting static web and rep-based sales with automatically triggered offers. Automated offers that appear when a member or their loan status meets the targeting rules ensure that offers are presented at key moments, increasing the likelihood of uptake. For instance, a member who receives a targeted offer for identity theft protection just after they receive a security alert or notice of unusual activity may be more inclined to purchase than if the offer was presented randomly. This strategic approach to promotions can lead to higher revenue per member and improved overall financial performance.
Credit unions face significant challenges in the current financial environment, but by revitalizing their approach to product offers, they can turn these challenges into opportunities. While many credit unions already provide valuable products and services, leveraging triggered and automated marketing tools can transform how these offers are presented and adopted. By automating and contextualizing offers, credit unions can drive higher engagement, boost revenue, and enhance member satisfaction.
Connect with Constant to learn more.
About Constant
Constant's executives, experienced in managing billions in retail debt, grew frustrated with legacy core system constraints and manual operations. They boldly transitioned loan servicing from manual to digital self-service, reshaping the operations landscape. Constant’s mission is to empower members to self-serve online and help credit unions grow through meaningful interactions with their members.