DALLAS — Credit unions which process their card accounts with TNB Card Services, the card processing arm of credit union-owned Town North Bank, and that worked with TNB on their all new card promotions, have been well rewarded for doing so, the card processor has reported.
The $175 million Abilene Teachers Federal Credit Union in Abilene, Texas, offered pre-qualified members a Classic or Gold Card with an introductory rate of 6.9% for six months and up to 9.9% thereafter. The credit union achieved a 1.54% response rate, pushing its total number of cardholders beyond 3,700.
"We offer one acquisition promotion each year, so we have high expectations for the number of new accounts we acquire," said Jon Caudle, vice president of lending for Abilene Teachers Federal Credit Union. "In 2006, we received a 33% increase in the number of new accounts over the 2005 promotion. By pre-qualifying our members, we were able to hand-select the members that were best suited for our card, offering them an attractive rate they probably couldn't get elsewhere."
The acquisition promotion was the first of its kind with TNB for Bashas' Associates Federal Credit Union of Tempe, Ariz. The 7,000-member credit union's introductory interest rate of 3.99% generated a 2.39% response rate from the promotion.
"We know that our members are price conscious, so we offered a low rate to demonstrate our desire to support them," said Brenda Roberts, operations manager for Bashas' Associates FCU. "While the rate was attractive and enticed some members, many of our members accepted the offer because they wanted a card from someone they know. They can walk into any of our branches and talk to someone about their card. You can't do that with a national issuer."
After several years between acquisitions promotions, in 2006 AMOCO Federal Credit Union of Texas City, Texas decided it was time to actively solicit new cardholders again. After a successful promotion in the spring of 2006, AMOCO participated in the fall promotion as well, generating a 1.44% open rate.
According to Vicki Walker, credit card manager of AMOCO FCU, "The acquisition promotion has been the most cost-effective way for us to add new cardholders. TNB made it easy to implement, and the customization is what really made the promotion work. We were able to determine the rate and terms, allowing us to tailor the promotion to our specifications."
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