Outbound-Call Strategy Strengthens Ties with Indirect Borrowers

CUNA Mutual Group
April 1, 2009 | COMMENTS

Devoting the necessary resources and implementing exclusively an outbound-calling strategy are keys to successfully building multi-product relationships with indirect borrowers. CUNA Mutual Group conducted a four-month research pilot project in 2008 that was published as white paper entitled “Developing Members from Indirect Borrowers: Lessons Learned.”

The research project involving 13 credit unions found that by implementing the right strategy, it is possible to have an impact on one of the industry's biggest challenges—deepening relationships with indirect borrowers.
 
According to Heather Thiltgen, vice president, consumer programs, CUNA Mutual Group, trained outbound calling representatives offered additional credit products—lines of credit, additional auto loan and credit care—based on member need. The overall cross-sales rate for the pilot was 21 percent. The most successful cross-sale product was a line of credit, which had a 28 percent sales rate. Auto refinances had a 15 percent sales rate and credit cards a 17 percent success rate.
 
“It is very important that your sales reps having outbound calling experience,” Thiltgen said. “There is a temptation for some credit unions to use down times for inbound reps to attempt outbound call programs, but it should be avoided. Outbound and inbound skill sets are very different.”
 
The dedicated outbound-calling staff should have a financial services background and be entrepreneurial, Thiltgen added. “We recommend that reps be well trained and should be salaried with incentives for meeting productivity goals. And, there needs to be performance expectations up front, for example calls per hour and a percent cross-sale rate.”
 
Choosing the right outbound call rep is a key to any program's success. As part of the research project, rep interviews attempted to determine if they were sufficiently outgoing and bold enough to ask for the sale. “But we also preferred an educational service call as opposed to an aggressive sales call. The sales philosophy requires assertiveness balanced with a strong service orientation and credit union values,” Thiltgen said.
 
Among other things, Thiltgen said the CUNA Mutual research project revealed members are receptive to outbound calls. “Even if you don't close new business during the call, it has a relationship-building benefit. Most members thanked the rep for the call, even if they failed to purchase an additional product.”
 
The research also revealed members are best reached on their home phone, Monday through Thursday between the hours of 3-7 p.m. and on Saturdays. Thiltgen said it took an average of 3.2 attempts to make contact with members and that 10 percent of the phone numbers call reps received were incorrect. “This could be viewed as a wake-up call for credit unions to check the accuracy of member phone numbers.”
 
“A proactive approach to securing more business from indirect borrowers is the wave of the future,” Thiltgen said. “Our research showed that a dedicated outbound calling strategy can engage otherwise one-and-done members in a way that will meet their needs and save them money.”

> Click here to download the white paper

CUNA Mutual Group provides financial services to credit unions and their members. For more information contact Rick Uhlmann at 608-231-8940 or rick.uhlmann@cunamutual.com.