Credit union gives fleet of cars to staff
United Community FCU just gave brand new 2009 Chevrolet HHRs to 17 employees. The cars, wrapped from bumper to bumper with credit union graphics, cost $380,000. To pay for the campaign, the credit union is slashing its marketing budget in half.
Each employee is required to drive their new car at least 10,000 miles a year for the next three years.
Key Question: How were employees picked? Which ones got cars? Which ones didn’t?
Employees are given incentives to win gas cards by providing contact information of prospective members who ask about the credit union.
After hearing about the free cars for employees. one potential member said she was planning to switch her account to the credit union from another institution because she wanted to “deal with someone who treats their employees so well.”
On the back of each car is a number that cell phone users can text to receive the credit union’s phone number and address. “We’ve had 13 messages since Thursday,” Pastirik said.
The credit union leased the cars for three years. Sixteen of the cars are white, and one is silver.
In an interview with CUNA News, Pastirik said United Community’s board was 100 percent behind the concept.
United Community’s CFO was the brainchild behind the credit union’s car giveaway, which goes to show you that marketing ideas don’t always come from just the marketing department.
United Community Federal, in Pittsburgh, PA, has 8,000 members and $36 million in assets.
Previous related stories from The Financial Brand:
- The problems start at home… Or do they?
- Casting call: Credit union TV ad contest draws 37 entries
- Prospera’s mailer is cool… literally, it’s icy
Tags: Employees, staff, United Community FCU
September 16th, 2008 at 9:27 am
I just don’t know what to think about this. As someone who’s done his share of PR/Advertising research, I know you can’t exclude any one venue from a marketing mix. But a fleet of cars that serve as eye-level, mobile billboards versus HALF of an advertising budget? I can’t imagine where else their money is going. What did they have to do without to make this work?
I don’t know if you know this or not, Jeffry, but do these cars have air conditioning/speakers/seat belts? There’s GOT to be a catch.
September 16th, 2008 at 9:47 am
The NCUA shows that they spent $116,292 on Education & Promotion expense in 2007, and have spent $68,120 so far on that line item for the first half of 2008, putting them on track to spend a total of $136,240 for the year. We have found that this line item is often the same as the marketing budget, or at least includes the marketing budget within it.
September 18th, 2008 at 12:46 pm
One thing is for certain: This is a fairly significant gamble. As with all big gambles, “big risk” = potential for “big win”… or “big loss.”
As a consequence, I’d bet this move improves employee retention, and not just during the next three years while employees drive the cars. I’d bet there will be an HR halo effect for years to come.
September 18th, 2008 at 1:59 pm
Wait a second here….a $36m credit union has a marketing budget of over $750k a year? Did I just read that right?
This could help my lobbying efforts for a $15,000,000 annual marketing budget.
September 18th, 2008 at 2:36 pm
I’m not sure, but the $380K may include all three years. That puts each year’s investment at $126K, with an annual marketing budget of $250K — that’s about 0.7% of assets (which is still pretty darn good for a $36 million credit union).
September 29th, 2008 at 12:36 am
Sorry all, my initial reaction was visceral. It seems like the dumbest stunt imaginable.
In a trend of CUs “Going Green” a credit union is “forcing” employees to drive 10k a year time 13 vehicles. That could generate negative PR. Also it seems like a very weak use of marketing dollars. Dedicated channels sometimes lose their impact once familiarity kicks in. This is why marketers switch up the messages - to keep things fresh and interesting. People build blindspots to familiar images. How many times have you been looking for your keys and found them right in front of you?
These graphics/message will not change for 3 years? Plus if this really was for marketing purposes, then why not get panel vans and squeeze more space for the marketing art and messages? Why not make them sports cars where they would get more attention and impact? Why not make them electric and have them drag little trailers behind them with billboards? Why not buy bus passes for ALL your members to use if they choose? What was the decision to go with these incredibly unattractive vehicles where the marketing info is below the windowline?
Better yet, who’s relative/spouse/friend who works at the local Chevy dealership that closed this sale? As a member, that’s what I would be asking.
As a member, I would rather that marketing dollar go to a local charity or school music program than to buy 13 employee vehicles as a pseudo-marketing stunt.
One last thought. Cell phone use in cars has almost been outlawed here in California. That trend may find its way across the country. Maybe in 2 years, people won’t be able to call in the special phone number from their cell phones. That is the danger of putting all your eggs in one marketing basket.
Nothing against the credit union or it’s staff. I don’t know them or their membership. This may end up being a slam dunk. But it does tend to fly in the face of what I know and definitely not something that I would have ever recommended (for better or worse).
But it is almost 1am on a Monday morning and it has been a long day. Maybe I will feel different tomorrow.
September 29th, 2008 at 8:26 am
You make some interesting points and ask some good questions. Nothing to apologize for Tony. You’re not casting judgments so much as raising some concerns, which is fair.