Targeted Marketing Turns Websites into Profit Centers

With online banking on a steep incline over the past 3 years, credit unions are losing the human element that made personalized marketing feasible. In the first quarter of 2003, credit unions reported that 15.88% of their members use websites for transactions, over double the 7.23% reported in the last quarter of 2000.

 
 

With online banking on a steep incline over the past 3 years, credit unions are losing the human element that made personalized marketing feasible. In the first quarter of 2003, credit unions reported that 15.88% of their members use websites for transactions, over double the 7.23% reported in the last quarter of 2000.

The benefits of transactional websites are many: members benefit from convenience and credit unions may allocate their resources more efficiently. In fact, with the popularity of online banking on the rise, credit unions that lag behind in providing this service may lose business to web-savvy competitors. But without a way to channel their online traffic, credit unions may not be employing websites effectively.

Some financial institutions are using new technology to overcome this challenge and communicate personally with their members. For example, First Technology Credit Union includes a new breed of financial calculators on its website (http://www.1sttech.com), educating members about topics such as mortgages, retirement planning, and budgeting. These tools not only educate members, but also allow credit unions to promote specific products and services in which members are interested.

First Technology's use of financial calculators on its site makes it easier for members to decide when they may be ready for that new car loan or to refinance their mortgage as they conduct their online banking. The website is easy to navigate with links to calculators accessible directly from pages about Mortgages and Loans. Site statistics show Calculators as the third most popular used section of the site, after online banking and finding contact information. ''When a member spends the average 4 minutes using one of our online calculators, they are obviously interested in taking some kind of action. They're shopping for a new car or a lower rate on their mortgage. We hope that providing these educational tools on our website will cause more members to choose to finance their next purchase through our credit union,'' said Char Shinn, e-Business Manager at First Technology, who described how members use calculators.

As online banking grows, opportunities continue to open for financial institutions choosing to take advantage of new technology. The latest features available from FinanCenter allow credit unions to collect customized market research information and to send targeted messages to members meeting defined criteria. Efficiently used, powerful tools such as these may assist member education and marketing to reach levels of precision previously impossible.

Click here to experience FinanCenter's financial calculators, visit . You may also contact Jon Jeffreys or Jill Richardson t or call 800-237-5678 to find out more about the next breed of online tools available.

 

 

 

July 14, 2003


Comments

 
 
 
  • Very interesting article. I didn't realize that almost 16% of customers use online services.
    Anonymous
     
     
     
  • Jill Richardson provides a glimpse into the future of online banking with this informative and useful article.
    Anonymous