CO-OP Promotion Sharply Lifts Debit Spending
Debit card holders at credit unions which participated in a recent CO-OP Financial Services promotion spent significantly more with their credit union debit cards during their promotion than they had previously, the payment CUSO said.
The “Season of Giving” program was held through November.
With the help of analysis from Saylent Technologies, the promotion targeted debit card holders who have historically not used the cards very often. These members were told that increasing the use of their debit cards would result in trees being planted as part of 40 reforestation projects around the world, about half of which were in the U.S.
The promotion resulted in an average increase in debit card spending on participating cards of 201%, moving from $62.60 per card to $188.87 in November.
Further, the CUSO reported that, on average, the numbers of debit transactions which were validated by a card member’s signature moved up 74% per card, from 3.87 to 6.73. At the same time, average spend per signature transaction also moved up 73%, from $16.18 to $28.01.
This moved the average interchange that those cards earned up 131%.
“CO-OP’s ‘Season of Giving’ marketing campaign helped our credit unions recognize real growth in an inactive member segment,” said Stan Hollen, president/CEO of CO-OP.