CHARLOTTE, N.C. — Who knew that a call for “Hoopty” love wouldyield such huge results?

Last fall, Carolina Postal Credit Union launched a Hooptycampaign that was part of a unique stealth marketing strategy thatresulted in a 325% return on investment.

Defined as a vehicle in poor condition, large often boat-like,and aided by duct tape or bungee cords, the Hoopty is somethingthat at some point everyone has needed whether for a second job, arural route, or a teenager's first car said CPCU Marketing VicePresident Deb McClean.

McClean said the campaign was not about providing “bad” loans oreven titled car loans but about finding ways to meet memberneeds.

“The idea for the campaign came out of a training meeting withour staff, they mentioned that members were always jokingly askingfor a loan for a 'Hoopty;” said Carolina Postal CU CEO Joy Watts.“We serve United States Postal Service employees and many of therural letter carriers drive their own personal cars for theirroute. They often prefer to drive a “beat-up” second car for theirroute –their hoopty.”

“We've had a lot of fun and got a lot of attention with thiscampaign,” said McClean. “This was really another way to open up adialogue with our members about what their needs are and howCarolina Postal can meet those needs.”

As part of the unique campaign CPCU launched an I Love My HooptyContest in search of everything from “Ugliest Color Hoopty”, to the“Best Utilization of Duct Tape on a Hoopty.”

Throughout the month of November members entered the contestfrom the CPCU Web site (www.CPCUonline.com) via a banner link tothe I Love My Hoopty blog (http://ilovemyhoopty.blogspot.com/). Theblog featured a Hoopty rap, YouTube video entitled the “Ragged RideBlues”, and contest participants' blogs about their personal Hooptyexperience and Hoopty photos.

Winners received a CPCU Emergency Car Kit containing jumpercables, fix-a-flat, flares, and a roll of duct tape. All entriesalso received “I Love My Hoopty” bumper stickers. Winners wereannounced in December and many members actually asked for “Hoopty”bumper stickers as stocking stuffers.

According to McLean, direct mail Hoopty postcards resulted in125 installment loans, the bulk of which were in the unsecuredportfolio. In addition, the credit union's annual loan growth isnow at 8.59%.

“Installment loans typically during that time frame averaged 84total for three months–subtracting out promotions, so 100 was mygoal, we exceeded with 125,” said McLean. “The campaign itself wasnot that expensive–just one postcard, email, banners,bumper-sticker and a statement insert–just under $10,000.”

As for the Hoopty Blog, McLean said that it was free onblogspot.com and was more an investment of time and creativity.

“The blog generated a lot of great word-of-mouth, laughter, andpromotion within the SEG base from new employee hires and theLetter Carrier Conferences we attended and the indirect results–theother new accounts cross-sold and opened during that sametime-frame to the same member set was 716% ROI,” said McLean. “Ournet income on the indirect was actually slightly higher than thedirect/installment loans.”

CPCU had over 54 “real” new auto-loans driven by the Hooptyresponses. McLean said members emailed or called to ask about theHoopty Contest then followed through with a new or used carloan.

“And we didn't have a separate auto campaign running during ourHoopty promotion,” said McLean. “Auto loans in this area have beensoft this year, so I was pleased to maintain what we had with 54new ones and not lose more auto loan portfolio.”

McClean said the campaign is proof that just providing whatmembers really need and want can open doors that help deepenrelationships.

“Let's say they are buying the Hoopty for the teen's first car,we ask if their teen also needs a checking account and debit card.Do we need to set the parent up with a financial advisor aboutcollege costs or a home equity loan to pay college tuition? Theconversations just grow from there.”

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