Generate Ongoing Loan Growth with Your Statements

Today’s Presentation

• Statement Marketing

• Credit Prospecting

• Putting them Together

LKCS

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

Transpromo Options

• Statement Ads/Onserts – LKCS print ads directly on your statements for pennies.

– Ads sent to all members OR we can target specific groups of members to receive one or more of these messages.

– You are no longer limited to short, text-only messages. Include graphics, logos, fonts, photos, etc. Even personalize the ads.

– Same technology enables loan payment coupons, rate grids, regulatory notices, etc. to be delivered on your statements.

– Design the ads yourself, select concepts from our online catalog, or have LKCS custom-design ads just for you.

Statement Onserts

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.

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.

E-Statements

• Clearly the future for majority of account statements

• Including statement marketing is just as important

All transpromo techniques can be incorporated into

LKCS’ e-statements

Credit-Based Marketing

• React with the RIGHT offer at the RIGHT time

• Based on actual credit bureau data

• Deliver a firm offer of credit to cross-sell additional products at the moment a need has been identified

DataFlex Credit Prospecting

• Available for any pre-screen marketing campaigns: – Auto Loans – Mortgages – HELOCs – Auto and Mortgage Refinancing – Credit Cards

• Pre-screen your existing accounts holders

DataFlex Credit Prospecting Lists

• Extend pre-approved offers of credit to account holders based on actual credit score information.

– Set criteria to identify recipients that will qualify for a loan offer based on your specific pre-screen requirements.

– Send statement-based loan offers to qualified prospects.

– And, of course, you can utilize the DataFlex reporting engine to measure the results of these campaigns!

Data Aggregation Overview

• LKCS multi-sources credit and non-credit data creating a very unique compilation of data

• Financial Services-centric and significant incremental advantages

Sample Campaigns

Leverage Credit Data to Generate Loans

with Your Statements GOAL: Generate Home Loans with Transpromo Statement Marketing

Sample Campaigns

• Transpromo Statement Cover Letter

• First Time Home Buyer’s Offer • Sent to Renters • Qualified by FICO Score

and other credit parameters

Sample Campaigns

• Transpromo Statement Cover Letter

• Revolving Debt Reduction Offer • Sent to Homeowner’s • Available equity over $xx,000 • Revolving debt over $xx,000 • Qualified by FICO Score

and other credit parameters

Sample Campaigns

• Transpromo Statement Cover Letter

• Home Equity Offer • Sent to Homeowner’s without

a Home Equity Loan/LOC • Available equity over $xx,000 • Qualified by FICO Score and

other credit parameters

Sample Campaigns

• Direct Mail Postcard

Sample Campaigns

• E-Mail Marketing

Matrix Statement Campaigns

• Series of statement onserts sent out over a period of months/quarters to cross-sell additional products and services to specific groups of account holders.

– Same concept as Matrix Mailings.

– Terrific solution for new account holders, mergers, new branch locations, new SEGs, expanded field of membership, etc.

– Ability to run multiple matrices at same time.

Matrix Campaign Case Study

• NorthStar Credit Union

• Matrix Layout

• Note: Each statement onsert is actually a coupon that includes a special offer

Matrix Ad Examples

Transpromo Statement Campaigns

• Some ideas:

– Loan Payoffs

– Auto Loan Recapture

– Birthday Messages

– Loan Payment Coupons

– Cross-Sell Opportunities

– New Account Holders

– CD Renewals

– Kids Club/Teen Club/Senior Club

– New Mergers/Branch Acquisitions

– New SEGs

Thank You!

Sid Haas Vice President of Business Development

LKCS Direct: 815-220-3904

E-Mail: sid.haas@lk-cs.com