DALLAS - Like the prolific Japanese kudzu vine, the "Es," e-commerce, e-mail and e-tail (Internet retail business), are winding their way around America. According to International Data Company, 180 million Americans will be on-line by 2004, a 118% increase from 1999. Even so, some credit unions are still reluctant to venture into cyberspace, which could limit their success in business, according to "E-Commerce: An Overview," a newly-released white paper from the Texas Credit Union Marketing Council. The Internet is undoubtedly changing business methodology, and "your credit union (must) accept it and prepare to move forward," says the report, authored by Mark Arnold, vice president of marketing, and Taylor Wells, marketing coordinator, both of DPCU. "Now is the time to ask tough questions and plan for fast action," the report reads. "Where are you in the evolution of e-commerce? Is your credit union still on the outside looking in?" If so, don't panic, the authors say. Credit unions will do themselves no favors by rushing in without a strategy. "E-commerce should not drive your credit union's strategic plan; rather, your strategic plan should guide your credit union's e-commerce efforts," say Arnold and Wells. Their suggestions include: * Developing an e-commerce team composed of persons from various departments, not just marketing. Include representatives from front-line areas because they have daily contact with members and understand their needs. The team should have specific goals and meet on a regular basis. * Incorporating relationship-building into your e-commerce strategy. "Although your credit union may become high-tech, it must still find a way to remain high-touch...maintaining that sense of community in cyberspace." * Becoming a "library" for your members. Your Web site should offer money management tips, not just a listing of products. * Budgeting dollars toward e-commerce, no matter how small your credit union is. If your budget is small, consider using freelance designers to launch a new Web site. An e-mail newsletter is low-cost technology. Other technology, however, is costly, such as bill payment and home banking. The Web site will be a credit union's first step toward becoming a full-fledged participant in e-commerce. The report categorizes Web sites in three tiers: 1. The basic Web site includes data such as the credit union's location and phone numbers, general product information, e-mail address and internal information such as names of board members and history. It functions as an electronic brochure. 2. The functional Web site allows a member to send information to the credit union. It may include loan and membership applications, interactive calculators, check re-orders, rates and fees. Loan applications are not real-time, but are e-mailed to the loan department to process like a mail application. 3. The Interactive Web site is the "Cadillac" of Web sites. It allows the member to perform such transactions as home banking, instant on-line approval and bill payment. "Your members' computers become their own branch...Interactivity is the key to establishing a relationship with your member via the Internet...No matter what type of Web site, the key is to have one...It's also important to plan for the next move," the authors advise. In developing an Internet presence, "E-Commerce: An Overview" suggests that credit unions will encounter problems, including: * Costs - Upgrading Web sites can be expensive. * Outdated Web site - Information must be current. * An uninformed staff - Employees should know what is on your site. Encourage them to visit the site often. * Too many graphics - Don't design your site with so many graphics that it takes an extended time to load. * Too large a site - Don't design a site that is so big that your members get lost. One of the simplest marketing techniques to employ is the e-mail newsletter, according to the report. "E-Commerce: An Overview" details how to develop a list of e-mail addresses, a critical part of your "e-newsletter" strategy. The report stresses the importance of quality content and using the newsletter as a means of developing dialogue with members. "This definitely isn't your father's credit union newsletter...Content, and how it differs vastly from the traditional newsletter, is what sets your e-mail newsletter apart...Consumers, particularly in the e-medium, are looking for content over commercials. If your newsletter doesn't offer something of real value, instead of just straight sales pitches, it's off to that great recycling bin in the sky.." Humor, simplicity (plenty of white space and short paragraphs), and timely response to member e-mails are all keys to having an "e-newsletter" that members actually read. Other suggestions: * To avoid having members view your e-mail marketing as "spam," or unwanted e-mail, go heavy on information and light on sales. * Be sure not to reveal the e-mail addresses of your subscribers in the "to" field. Use the Bcc (Blind Carbon Copy) feature. * Set up a name in the "from" box that recipients will recognize easily. * Take time to come up with a catchy "subject" line. * Give recipients a way out. Provide a return address where members can write to request removal from the mailing list. * Talk to your Internet Service Provider about rules concerning mass e-mails. The Internet is changing everyday, and so are the ways in which it is being used by credit unions. Staying informed about what's out there is critical, concludes the report. "E-Commerce: An Overview "is available through the Texas Credit Union Marketing Council. For more information, call Eve Karlebach at (800) 442-5762. -
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