Transcript Credit Union Support - LoveMyCreditUnion.org

League/LSC
Conference Call
Wednesday, March 25, 2009
Agenda
• IIA Vision and Results
• Partner Updates
–
–
–
–
Ford
GM
Chrysler
Sprint
• Advertising Pool Overview
• Q&A
IIA Mission
• To develop and promote exclusive credit union member
discounts on products and services offered by American
owned corporations to provide a stimulus for stronger
financial results for the U.S. economy, increase credit
union membership and member satisfaction.
– Develop an extensive program with domestic automakers that
generates incremental vehicle purchases and credit union loans
– Identify and expand member rewards by partnering with larger
Fortune 1000 companies
IIA Vision
Invest in America is our brand for credit union
membership enhancements in order to drive
growth and retention
IIA Results
Objective
Metric
Program to Date
40
League Participation
1000
# CU Opt-Ins
80%
% CU membership Opt-Ins
400
# of Top 500 CU Opt-Ins
155
75,000
New CU Members
TBD
300,000
# CU Loans
48,540
360,000
# Vehicle Sales
56,926
As of 3/23/09
40
1114
31.8%
League Support
40 Leagues signed marketing agreement
Alabama
Idaho
Massachusetts
New Hampshire Pennsylvania
Arizona
Illinois*
Michigan
New Jersey
Rhode Island
California
Indiana
Minnesota
New York
South Carolina
Delaware
Iowa*
Mississippi
North Carolina*
South Dakota
Wash. D.C. Kansas
Missouri
North Dakota
Utah
Florida
Louisiana
Montana
Ohio
Virginia
Georgia
Maine
Nebraska
Oklahoma
Washington
Hawaii
Maryland
Nevada
Oregon
West Virginia
* Verbal commitment
Credit Union Support
• Credit Union Support
– 1114 Credit unions 30.8 million members (31.8%)
Asset Size
# Supporting
%
Top 10
5
50%
Top 50
15
30%
Top 100
40
40%
Top 250
94
37.6%
Top 500
155
31.0%
Sales Activity
• Almost 57,000 vehicles sold through February
– 18,629 from GM
– 38,297 from Chrysler
– Vehicle sales from all 50 states
• Members from over 4,000 credit unions
Ford
• Pilot program starting in FL, NY, NJ and MI
• Anticipated start date of July 1
GM
• Supplier pricing will continue through year end
• GM Incremental $500 discount
– April 1 – May 31
– Credit unions provide
• Marketing support
• .5% rate reduction from current rates
• 60 month or longer loan
– Credit Union participation
• 169 credit unions
• 2.9 million members
• Leasing Pilot in NY for the Cadillac CTS
Chrysler
• $1,000 discount through June 30
• Contract extension anticipated through year end
• Credit union level sales data will be available beginning
April 1
Sprint
• Sprint membership enhancement program is now under the Invest in
America umbrella
• Leverage national exposure to help leagues and credit unions
continue to grow and expand the program’s awareness
• Results
– 18 Leagues
– 380 Credit Unions in 26 states
– Over 285,000 Accounts
– Members have saved over $18 million
Sprint League Support
18 Leagues Supporting Sprint
Alabama
Michigan
New York
Arizona
Minnesota
Ohio
Arkansas
Missouri
Pennsylvania
California
Nevada
Texas
Florida
New Jersey
Utah
Hawaii
New Mexico
Washington
Advertising Pool
• As part of the Invest in America program, GM and
Chrysler fund a per unit sold incentive to create an ad
pool which is divided as follows
–
–
–
–
70% consumer advertising
10% participating leagues
10% program partners (CUDL, GrooveCar, etc.)
10% CUcorp
Ad Pool Objectives
• To develop a national media plan for the 70% consumer advertising
portion to maximize effectiveness by leveraging funds through one
media buy
• To encourage LSCs and Partners to utilize their 10% portion (in
conjunction with cooperative advertising budgets) on media
• To encourage use of media by individual credit unions
Ad Pool Strategy
• To best leverage the funds to support Invest in America,
develop a tiered media plan at the national, state and
local levels
– Tier 1 (70%) - National Consumer Advertising
– Tier 2 (10%/10%/10%) – State LSC’s/Partners
– Tier 3 - Local Individual Credit Unions
Media Objectives
• To build awareness of Invest in America at a national level
• To help drive auto sales and credit union financing
Tier 1
Seventy Percent Ad Pool
• The 70% portion of the ad pool is the only portion of the incentive
that is required to be spent on consumer advertising
• The contracts require that this advertising must specifically promote
GM or Chrysler credit union member discounts at a media weight
commensurate with the incentive dollars they place in the pool
• The forecasted $5 million in incentives will be the basis of the media
budget for plan development and is anticipated to grow
• As these funds are an incentive from the manufacturers, CUcorp
needs to ensure that the plan is objective and well-balanced to
benefit all states
Tier 1
Seventy Percent Ad Pool
•
To develop the most effective and cost efficient plan, CUcorp will develop a
national-level media plan
– Media dollars will stretch further and increases negotiating power for
value-adds
– Plan will benefit all participating leagues and credit unions
•
Based on a $5 million budget, the media plan will most likely by a
combination of radio and online advertising
•
Media plan must be approved by GM and Chrysler
•
The media plan will be presented to all participating LSCs prior to
purchasing media
Tier 2
LSC’s and Partners
• Participating LSC’s/Partners both receive 10% of the ad pool
• LSC’s have no spending requirements on the 10% incentive
• To further leverage the Invest in America message, CUcorp
recommends that LSC’s consider utilizing their incentive, and other
advertising funds advertising Invest in America
– As an example, the Michigan Credit Union League has committed its
$1.4 million cooperative advertising budget on Invest in America
advertising in the state of Michigan
Tier 2
LSC’s
• LSC’s IIA Advertising Program
– Use of (2) TV and (4) radio spots that have been produced and
available at no cost
– Media planning/buying at discounted commission rate of 12%
– Customized tags available at additional cost
– Funds only used to purchase media in the LSC’s state
Tier 3
Individual Credit Unions
• Credit unions should also take advantage of the national campaign
by advertising Invest in America in their local markets
• Credit Unions IIA Advertising Program
– Use of TV and radio spots at no cost
– Customized tags available at additional cost
– Media planning/buying at discounted commission rate of 12%
– Funds only used to purchase media in credit union’s local market
– Marketing materials available at no cost in lovemycreditunion.org Partner Center
Q&A