SAGINAW, Mich. – The $253 million Team One Credit Union, headquartered in Saginaw, Michigan saw a 38% increase in cardholder activation across its credit card programs after starting a card activation promotion. "With the average cost to acquire a new cardholder about six times more than maintaining existing ones, it's not enough to have the member on the books if they're not using their card," commented Konnie Werner, Team One's President. According to data submitted to NCUA for March 2004, the credit union's card portfolio carried $17 million in outstanding balances and represented a 21% penetration rate for the institution's cards. With the help of its card processor Certegy, and support of Card Services for Credit Unions, Team One implemented an activation promotion. During the three-month promotional period of April – June 2004, they targeted 739 cardholders that had either not activated their card within 60 days or had no purchase activity for more than 90 days, but were current and in good standing. Approximately half of these cardholders received an offer of a complimentary companion airfare coupon for using their credit union card five times and spending a total of $500 or more within the promotion period. The balance of the cardholders received an offer for a tiered rewards program, earning points redeemable for merchandise. The more the cardholder spent using their Team One card, the greater the value of the merchandise award earned. At the conclusion of the combined promotion, 278 or 38% activated, increasing Team One's total net purchase volume by almost $109,000. "Now that we have these cardholders using our card, we're going to make sure they keep using it!" stated Werner. "We're very pleased with the results of the promotion and the impact on our overall portfolio and plan to run it again in the coming months."