Budget BoostersGetting More For Less

LKCS

Your Weak Economy Opportunity

• Maintaining your marketing will enable you to capture new business.

• There is a strong correlation between sustained spending and increased market share. (American Association of Advertising Agencies)

• Consumers don’t go away during a weak economy, they grow more conservative.

• This is an opportunity for you to encourage brand switching to safer and cost-saving alternatives.

Your Weak Economy Opportunity (continued)

• Marketers that continue to spend during a weak economic environment do far better AFTERWARD than those that significantly cut or eliminate spending. (Profit Impact of Market Strategy, developed by the Strategic Planning Institute)

• Cuts in marketing investments during an economic slowdown have a cumulative negative impact on the long-term value of a brand.

Budget Boosters

• Web Development and E-Marketing Trends

• Target Marketing with DataFlex

• Transpromotional Statement Marketing

Web Sites and E-Marketing

• Your web site is the FIRST place many people will go for information about your institution.

• Keep your site current.

– It’s inexpensive.

– It’s EASY – especially if you do it regularly.

– Account holders are visiting regularly – especially if your home banking login is on the home page.

Web Site Content

• Content is KING

• You may update your rates (if not, you should).

• Do you update product information and marketing promotions?

These are MORE important – especially when attracting the rate shoppers.

Best Practices

• Maintain content– Update marketing offers, banner ads and page content

as regularly as possible– Content Management Systems (CMS), custom control

panels, third-party services• Market your site

– URL should be on everything, encourage web visits through other marketing channels, offer special web discounts and promotions, online advertising

• Don’t over use the home page– Keep home page focal points to a minimum

Where Does Your Site Stand?

• Tools to monitor your site– Google Analytics, Google Webmaster Tools, analytics

software offered by your provider/web host– Most active pages – place banner ads here– Search terms – consider keyword advertising– Referrers – consider 3rd party banner ads

• Get feedback from your audience– Online surveys, interact with your users

• Professional review– Have a professional review done on your site

Banner Advertising

• Use them on your web site• Several options:

– Static ads– Random ads– Rotating ads– Animated ads– Interactive ads

• Manage ads yourself. Change frequently. Schedule ads to coordinate with other media.

Banner Ad Examples

Apply Now

E-Mail Marketing is a MUST Have

• Cost effective

• Complete tracking capabilities to measure results

• Just about EVERYONE has an e-mail address

• Allows direct interaction with your web site

• “Immediate” delivery and real-time reporting

E-Mail Marketing is a MUST Have (continued)

• Collects important data for future correspondence

• Send a message at any time with minimal turn-around

• Can be used to coordinate with other marketing efforts

E-Mail Tracking

•Real-Time Access to Results:–Messages sent–Messages read–Multiple reads–Click throughs–Subscribes/unsubscribes–Complete user information with detailed reporting

•Allows for easy, automated follow-up

E-Mail Tracking (continued)

Delivering the Message

• Creating the articles– Use articles from your newsletter– Create your own copy– Let us help you

• Keep it short– We recommend 2-3 articles per message – Each article should be as concise as possible

• Link back to your site– Include links to your web site – especially to

applications, calculators and interactive elements

It’s Time to Go Mobile

• According to the Morgan Stanley Internet Trends Report (June 2010):– More smartphones will be purchased annually than

desktop and notebook PCs by 2012• In North America, this is already happening

– There are 1.6B internet users worldwide and 4.1B mobile subscribers.

– There are 5 major trends converging that are causing massive mobile internet growth: 3G/4G, social networking, video, VoIP, impressive mobile devices

– By 2015 “more users will connect to the Internet over mobile devices than desktop PCs.”

Introduction to Mobile

• Mobile Web Sites vs. Mobile Apps• Mobile banking – Mobile formatted access to online

banking.

• Mobile web site – Mobile formatted web site to offer key information to your mobile audience such as mobile banking log-in, current rates, contact information, etc.

• Mobile app - Software application/program that a user installs and uses on a specific mobile operating system, typically providing mobile banking services.

LKCS’ Recommendation:Implement a mobile web site and save THOUSANDS of dollars while

providing access to your mobile services from ALL DEVICES.

Mobile Web Sites

• Samples

Mobile Web Sites

• Samples

Mobile Users Interact with QR Codes

• A 2d barcode with embedded data such as web site URLs, phone numbers, e-mail addresses, calendar events, etc.

• QR code is short for Quick Response code.

• Numerous barcode and QR code scanners are available for free in smartphone app stores.

• Once the QR code is scanned the smartphone will automatically launch the requested web page, call the embedded number, draft an e-mail, etc.

• NO TYPING REQUIRED

How do they work?

• Install a free QR Code/Barcode app. Then….

Do people use QR codes?

• During the last six months of 2010 QR code scanning increased 1,200 percent across North America. (Source: Mobio Identity Systems, Inc.)

• The same report showed:– The majority of QR scanning is coming from individuals in the

35-44 years of age bracket (25%).

– Steady adoption is being seen amongst all age brackets between 18 and 54 years of age (84%).

– Women show more interest than men in collecting information on products and services, entering contests, and making purchases using their smartphone.

Track QR Code Usage

• LKCS Usage Statistics:– Monthly/Yearly

visitors– Weekly Visitors– Daily Visitors– Device Information

QR Code Best Practices

• Include simple instructions to educate people about QR codes.

• Generate unique QR codes fordifferent pieces that link to thesame URL– For example, measure different newspaper ads,

distinguish between direct mail and statement stuffers, etc.

• Format landing pages for mobile devices– Content Management Systems make this easy

• Link to compelling content – relevant text (keep it short), special offers, exclusive links, videos, contests

Scan this QR Code with your mobile reader.

Don’t have the app?Search for “QR code reader” in your app store.

Stop Sending Paper Surveys

What this means:Online surveys are less expensive, more effective, and easier to implement than traditional surveys.

Traditional Surveys• Long delay between when surveys

are mailed and when data is collected.

• Responses need to be transposed by hand or scanned.

• Completed surveys need to be sent/delivered back to you, resulting in low response rates.

Online Surveys• Data is collected immediately as

surveys are completed. Results available in real time.

• Survey responses are recorded electronically. No data entry.

• Much higher response rates. Surveys are completed as soon as they are received.

The Way Direct Marketing Used to Be

• “Broadcast” Marketing– Same message delivered to all recipients– Promotion/offer not relevant for all– High quantities and low response rates

• The Result:– Low cost per piece– High cost per response

The Way Direct Marketing is Now

• “One to One” Marketing– Specific message delivered to specific

demographics– Promotion/offer relevant to each recipient– Lower quantities and higher response rates

• The Results:– High cost per piece– Low cost per response

Printing is Changing

• Digital printing technology is changing the game.– “Press-Runs” are a thing of the past.

– No quantity is too low.

– Every individual piece can now be heavily customized based on what you know about the recipient.

– If it’s in the data, it can be used to make your mailings more relevant which will lead to improved results.

• Targeted postcards, laser letters, newsletters, and even personalized brochures are all affordable.

Hitting the Target

• What Information is Available?– Account holder data in your core processing system

and other internal systems.

– Information is available from numerous external sources as well.

• Collect this information and identify your target.

• Put the data to use and launch your campaign.

• Measure the results and improve on the concept for your next promotion.

External Data Sources

• High quality data is available– Ability to target specific demographics including

location (zip codes, carrier routes or distance radius), age, sex, income, life stages, home ownership and MANY other criteria

– Lists are constantly updated for improved accuracy

• Purchase prospect lists or append data to your existing account holder lists

• LIST COUNTS ARE FREE – Find a good data source and have them work for you!

Credit Prospecting Data

• Use actual credit bureau data for pre-screen marketing campaigns.

• Identify prospects that will qualify for your offer.• Mortgages

– New purchases, refinances, FHA streamlines, etc.

• Home Equity– Available equity, revolving debt, loan to value, etc.

• Auto Loans– New purchases, refinances, lease expirations, etc.

• Daily and Weekly Triggers

One Example – Home Equity Campaign

• GOAL – Gain additional home equity lending business from both existing account holders and prospective account holders

– What data do you have?

– What data is available?

– What can you do with it?

– How do you measure the results?

Home Equity Data You Already Have

• Which account holders have/do not have a home equity loan with your institution?

• Which accounts have available credit in an existing HELOC?

• Which account holders have an older mortgage (maybe over 7 or 10 years) that may have a significant amount of available equity?

Readily Available Home Loan Data

– Homeowner/Renter

– Available Equity

– Current Mortgage Amount

– Home Purchase Price

– Length of Residence

– Loan to Value

– Credit Worthiness

– Basic Demographics (age, income, presence of children,etc.)

• There is a wealth of homeowner data available from a variety of data suppliers (including LKCS).

• Available data elements include:

Potential Campaigns

• Identify people with available equity in an open line of credit and mail them a HELOC advance request coupon.

• Promote home equity products to individuals with available equity over a specified amount (i.e. $30,000).

• Market home equity to fund education expenses for residents between specified ages (i.e. 35-55) with presence of children.

• Encourage those with available equity (i.e. over $20,000) and no auto loans or only 1 auto loan to use home equity to fund vehicle purchases.

Potential Campaigns (continued)

• Promote home equity products to homeowners with income over a specified amount (i.e. $50,000) who have a 1st Mortgage below a specified amount (i.e. $70,000).

• Offer home equity debt consolidation loans to people who have revolving credit card debt over $10,000.

• Further limit by geography (radius around branches), credit worthiness, age, etc….

REMEMBER….

• Public information is public. Use it.

• Don’t know what data is available?

– Ask us for recommendations

– We have relationships with multiple data sources

Don’t Get Intimidated by Data

• A PhD is not required!

• RECOMMENDATION: DataFlex– Identify target groups of existing account

holders

– Build profile of existing account holders to identify qualified prospects

– Extract targeted mailing lists of existing account holders

– Measure the results of campaigns

DataFlex

• Database marketing for the marketing person.

– No programming or database experience needed!

• Not just your typical data tables and graphs

• Interactive reports and dashboards give you instant access to information

Report Sample Loans Coming Due Dashboard

Report Sample Loan Balance Trends Dashboard

Transpromo Statement Marketing

• What is Transpromo?– Transpromo is a compound expression formed from the

words "transaction" and "promotional".

– By adding relevant messages, you can piggyback targeted promotions and advertising onto existing transaction-related documents, such as statements.

– Transpromotional documents combine and data mining and business intelligence technology with variable data printing.

• TAKE ADVANTAGE OF “FREE” POSTAGE!

– Include targeted advertising with your statements

Does Transpromo Work?

• How many people actually look at their statements?

• Would you believe these numbers?– According to a 2009 survey performed by the United

States Postal Service, 95% of people will read their monthly statement at least once, spending an average of 3 minutes reviewing the statement.

– A September 2009 Survey by InfoPrint (a joint venture between Ricoh and IBM) found 83% of respondents always open bank statements received in the mail.

– A 2010 Survey by PitneyBowes reports 73% said they would open and read financial/bank statements right away.

Does Transpromo work?

• Will people look at ads on their statements?– 64% of respondents to a recent survey by Zoomerang

and InfoPrint said they would use personalized coupons if printed onto monthly bills and statements (with nearly half responding that these would encourage brand loyalty).

– Compare this to the DMA 2010 Response Rate Trend Report that says nearly 60 percent of direct mail campaigns in financial services aimed to produce a direct sale. The average response rate was a comparatively low 2.66% to a house list and 1.01% to a prospect list.

Onserts (ads) printed on your statements will get read.

Statement Onserts

More Transpromo

• Statement Letters– Include personalized direct

mail letters as the first page of your account statements. NO EXTRA POSTAGE!

– According to the DMA, personalized letters remain as the most effective direct mail method.

– Use for pre-approvals, referral campaigns, skip-a-pay, investment relationships, welcome new members, etc.

E-Statements

All transpromo techniques can be incorporated into

LKCS’ e-statements

Thank You!

Sid HaasVice President of Business

Development

Direct: 815-220-3904E-Mail: sid.haas@lk-cs.com