The 11,000 members of the True North Federal Credit Union, headquartered in Juneau, Alaska, have responded strongly to a targeted offer centered on the credit union's Platinum Visa card.
Working with its card processor, PSCU Financial Services, the CU's card offer garnered a response rate of 9.23% and boosted outstanding balances by 5%. As of Dec. 31, the CU had $7.1 million in outstanding balances in its card portfolio and almost 2,350 active accounts.
The promotion offered a 4.99% annual percentage rate on cash transactions, including balance consolidation, convenience checks, ATM and other cash advances during a six week period. This yielded an average balance transfer of $5,000, along with $240,000 in new outstanding balances. In addition, marketing in branches and online helped the CU bring in $125,000 in brand new balances.
“This campaign exceeded our expectations by creating a dramatic lift in outstandings while stimulating continued higher use of our credit card,” said Bill Peters, True North’s vice president of corporate development. “PSCU Financial Services’ team played a vital role in designing this campaign,” he added.