13 Ways to Watch Your Budget on Summer Vacation

As community-sized financial institutions, we're all about saving our customers/members money, right? Beyond providing great rates, we need to show that we care about every aspect of their finances.

Show that you understand how important it is to stretch every dollar during these long, hot summer months. Here are a few tips to share that will save on your customers/members Summer Vacation:

1) Save for summer all year long with a dedicated Savings Account. By putting aside $100 per month, you can have $1,200 for vacation in one year.

2) Create a budget for vacation. Break it into categories for each anticipated expense like hotel, food, entertainment and gas.

3) Review each budget category and find ways to trim it.

4) Try to make your own meals whenever possible. Eating out gets expensive and family picnics may be the most memorable part of your summer.

5) Stay with friends and family when possible. You’ll save on the hotel cost and sharing with friends and family adds to the fun.

6) Instead of an expensive vacation this year, why not try a “staycation.” A trip to the local zoo or amusement park is infinitely less expensive than a Florida sunburn.

7) Even if you travel, find free entertainment like museums, beaches and hiking.

8) Find free or low-cost activities for your kids. Start with the schools, rec. center, local parks or the YMCA. There are tons of fun and educational activities for the kids right here in town.

9) Split vacation costs with another family. Rent a condo or vacation home and spilt gas money.

10) Do your research. There are many online coupons and discounts.

11) Switch to a credit card with a lower interest rate. There’s no sense collecting air miles or other such perks with a high interest card if you can’t pay off your balance each month. Transfer it to a lower interest credit card at your institution.

12) If you and your friends have young kids, consider setting up a babysitting co-operative with another family. You look after their kids for an evening in exchange for a night out at a later date.

13) Cancel your gym membership. As the weather gets warmer, go for a walk or run around your neighborhood instead. You don’t need to spend $50-$150 a month to stay active.

I'd love to see some interactivity with this blog, folks ... and I know y'all are creative! If you have any ideas to add to this list, jot them down in the "comments" section.

Take care, Eric

Challenges Make Us Sharper

It seems as if everywhere we turn these days, a crisis emerges. The real estate market, the banking troubles, the stock market yo-yo, unemployment, the European Market crisis, earthquakes, tsunamis, fires, and now the BP Gulf Oil crisis. It's starting to wear us all down. But if you look closer, we know that the human spirit can actually grow during times of great concern and even crisis. We are forced out of our comfort zones and challenged to think differently, ask new questions, formulate new strategies and plans, create new ideas and idioms that we've never known before. This is growth!
This higher level of awareness and heightened senses develops keener thinking. As bankers, we are looking at new regulations and challenging ourselves with creative ways to work within the guidelines, looking for new ways to show our commitment to customer clarity and understanding.
Reaching out to our customers with a new sensitivity to their financial concerns, their wariness of banks in general now, and their lack of empathy for our "problems", is a new requirement, a new way of communicating.
But I beleive this is a good thing. Troublesome and time-consuming, yes. But anytime we take a step closer to aligning what is best for our customers with what is best for us as bankers, it is a good thing.
I predict good things will come back to the banks and credit unions that take the time to develop more customer centric products, systems, and communications now. That's what we at MarketMatch have been promoting for a long time.
I would love to hear from you with some examples of the new ways of communicating or new products and services that you have developed as a result of the crisis and chaos thath we have been coping with since 2008. Email me at slovejoy@marketmatch.com.
Have a great week!
Sharon

Product Management

How long has it been since your institution did a review of your products?

Many times because of mergers, acquisitions, etc. the number of products offered just seem to multiply! Either the organization doesn't have the in house talent to properly map products during the systems conversion or they simply feel the best approach is to "grandfather" the acquired/merged institutions products meaning the products aren't eliminated but are no longer being sold after the acquisition/merger is finalized.

Other times, institutions continue to add new products to keep up with the competition without determining the impact on their existing product line up.

The net result is that the institution doesn't have the proper "linkage" in their product line up.

Overlapping features and benefits make it difficult if not impossible for the sales person to identify the "right" product to meet their customer/prospects needs. The result is a less confident sales force. It also makes it difficult for the customer/prospect when they start their shopping process to determine if your institution has the "right" product to meet their needs.

If the products have distinct non-overlapping features and benefits, the sales process becomes much easier. Sales training becomes much easier. Brochures and merchandising become more effective. Customer/prospect needs are met and the net result is stronger household relationships and increased household profitability.

If you need help determining the "right" number of products and the proper "linkage" between products for you institution, MarketMatch can help!

Have a great weekend!

Mike

Post August 15th

OK, Bankers. On July 1, Reg E goes into effect with all new accounts.

It effects your existing accounts on August 15. And your customers/members need to respond to your opt-in request by August 11 to not be effected at the deadline.

So what then?

You have been frantically trying to educate and motivate your customers/members to get a response to your opt-in requests, but are you planning your post-August 15 strategy? Here are some tips:

Be Proactive:

Despite your best efforts to educate your audience, you'll be amazed by how many complaints you'll receive when transactions are declined.

Communicate with ALL "opt-out" customers who are declined immediately. Email is ideal because of it's speed, a phone call is also fast (but more time consuming), use snail mail is necessary - heck even smoke signal if that's all you have!

• Explain that you acted according to their wishes
• Explain that you've attempted several contacts to notify of change
• Provide an opportunity to opt-in to avoid future declines

Prepare the front line staff and call center

• Reiterate the Reg E basics to your staff (they must be comfortable communicating about the regulation)
• Arm your staff with a list of (better yet, samples of) all Reg E materials sent to customers
• Provide staff the tools to help customers opt-in for future transactions
• Provide the questions your staff must ask to be able to recommend opt-in vs. opt-out

Add Opt-in to your On-boarding program

• New account customers who decline opt-in at first should receive communication within their first 90 days with your bank/credit union
• Simply provide "real world" examples of what can happen with and without overdraft protection

Don't ignore your opt-out customers

• Cross-sell alternatives to overdraft like lines of credit or savings sweeps

This is a Commercial/SEG opportunity

• Educate local merchants about Reg E and it's likely effects (this can be an invitation-only on-site seminar and/or your Commercial/BD staff can go on the road with meaningful information)

- Stick to the basics - you're not talking to regulators or compliance people here!

- Make sure it's clear that this effects ALL institutions, not just yours

• Provide merchants with material to give to customers who are declined so they can contact you to opt-in

Roughly 27.4% of non-interest income comes from NSF/Courtesy Pay - nearly half of that from POS and ATM transactions. I've talked to several institutions with millions of dollars at stake and we're weeks away from the deadline.

Take care,

Eric

And so it begins...

Summer is here...

And so it begins!

The summer rush to enjoy the great outdoors, trips, family, baseball...its all about enjoying life and living each moment!  For you, your staff, AND your customers.

The need?  For you, your staff and your Bank/CU to put yourself in position to help your customers.  Debit cards, online banking, credit cards...even travelers checks.  I know, sounds very basic. However, it is also the moment of truth for you!  How?  Why?

Because you prove yourself OVER and OVER again to a customer...not just in the first 90 days, but each time they interact with you.  Do the LITTLE things well and the BIG things will come to you more often, faster and with less competition attached!

So, prepare your staff to be prepared to help your customers with the SMALL stuff...

Enjoy the start of summer...and enjoy watching your staff plant the service delivery seeds for a GREAT fall!

Cheers!

Bruce Clapp