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Promotions of the benefits of shopping with credit union debit and credit cards during those times can see particular success.
Sponsored by CO-OP Financial Services
Aside from the usual suspects like Black Friday and Cyber Monday, a particularly opportune spending holiday for credit card marketers is the “tax-free weekend.” Why? Because the average family with children in grades K-12 plans to spend about $675 on clothes, shoes, gadgets/devices and school supplies.
With the right campaign, credit union cards marketers stand an excellent chance of both earning those transactions and helping members save even more during what can be a financially stressful time.
Several U.S. states hosted tax-free weekends during the summer of 2017. With school about to start, the states seek to ease the tax burden on residents while stimulating purchases on things like apparel, school supplies and similar items. New Mexico, home to $1.9 billion Nusenda Credit Union, Albuquerque, is among the states that have coordinated tax-free weekends this year.
“Each year, we see a significant lift in portfolio balances during tax-free weekend,” said JJ Alcantar, Nusenda CU’s AVP/card services. “Our cards team definitely leverages the opportunity. We execute a variety of promotions, including an internal campaign, to remind members of the benefits that come from back-to-school shopping with their credit union debit and credit cards.”
In 2016, Alcantar’s team coordinated a credit card rewards campaign offering triple points and 5 percent cash back for purchases made during the tax-free weekend. The outcome was a significant boost in both number of transactions and purchase amounts.
To leverage the momentum built during last year’s holiday, the cards team again this year deployed rewards campaigns to inspire members to use their credit union debit and credit cards for back-to-school shopping Aug. 4-6. The campaigns paid off, as Nusenda CU’s card portfolios saw year-over-year increases above 10 percent.
The total number of signature and PIN debit transactions made by Nusenda CU cardholders rose 11.9 percent, with an associated increase in volume of 12.7 percent. On the credit side of the coin, the number of transactions rose 11.8 percent, and volume was up 17.5 percent.
Alcantar encourages his credit union colleagues in other states with tax-free holidays to take advantage of the win-win opportunity presented by the special days. “Adding rewards on top of tax savings is great for our members, just as the increased portfolio performance is great for the credit union,” said Alcantar.
Consider planning now for a campaign around a tax-free holiday in 2018. Rewarding stressed parents during back-to-school spending time is a perk that will never go out of style.
Bill Prichard is director/public relations for CUES Supplier member CO-OP Financial Services, a payments and financial technology provider to credit unions based in Rancho Cucamonga, Calif. Prichard can be reached at 800.782.9042, ext. 3450.
