Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
CUs banks wooing new members with merchandise
MADISON, Wis. (2/1/10)--A growing number of credit unions and banks are attempting to attract and retain new members by offering marketing merchandise--such as toasters, iPods and luggage--instead of offering cash and gift cards. “Cash, it seems, is no longer king,” said Alan Yarbrough, director of sales for River Rock Marketing Services, a company that specializes in developing incentive-based acquisition and retention programs that use merchandise as incentive gifts (Business Wire Jan. 28). “With $50 offers regularly being topped by $250 offers, our clients are telling us that they are giving up on a cash ‘arms race’ that has become prohibitively expensive and questionable in value,” Yarbrough added. Research conducted in December by AlixPartners LLP indicated that consumers want to switch from big banks to credit unions and local banks. The research also showed that 75% of banking customers were unhappy with banks in general, said River Rock. “Now more than ever, consumers want a transparent relationship built on old-fashioned values like honesty, integrity and respect,” Yarbrough said. “Small- and mid-sized banks and credit unions are turning to branded bank marketing gifts as an inducement to earn their business and help build that relationship.” Branded merchandise motivates consumers to take immediate action, he added. It has a long-term “trophy value.” Once cash or a gift card is spent, it’s gone, Yarborough said.
Other Resources

RSS print
News Now LiveWire
Catch the $ave Wave during #creditunions #CUYouthWeek! http://t.co/z3iom2ONGo
21 minutes ago
30+ states allow #creditunions to act as public depositories, another Northeastern state may soon follow suit #CUNA http://t.co/EV1dB3phTH
1 hours ago
New #databreach at Michaels & associated business Aaron Brothers may have impacted 2.6m cardholders http://t.co/jYeFs8okao
2 hours ago
#creditunion-community ties stressed during public funds depository testimony by @MassLeague See #NewsNow http://t.co/K7OrwuvhxM
2 hours ago
Large CU stress testing on the agenda for the April @theNCUA open meeting http://t.co/2TUcnmCmPi
12 hours ago