By Ray Birch
DENVER—Supporting local school systems has been such a large part of one CU’s community relations efforts that it is willing to pay members $58.20 for each new account they open—for life.
Westerra Credit Union’s “5820 School Fundraising Program” provides that cash if members are tied to the local school system, take a new product, and then request the money be donated to the school.
“We ask them where do they want that money to go—to one of the schools’ sports teams, or to a need a school has, a fundraising effort…” said Marketing Manager Dana Russell. “And we will do that for them as long as they are a member of the credit union. So, if they come in a few years later to open a new account, our system will flag they are part of this program, and we will ask them if they want another $58.20 to go to a local school, and where do they want the funds to go.”
The CU chose the amount for the donation based on Denver being 5,280 feet above sea level.
Russell explained the credit union has been offering the program for more than eight years and that is has done a great deal to raise awareness of the $1.8-billion Westerra, not only among the school districts but also throughout the communities it serves.
Simple Community Relations
The fundraising effort does not have financial metricis attached to it, such as gauging the profitability of the new members coming into the credit union from the offer, or the actual bottom-line benefit from the money spent, Russell said.
“This is simply community relations and it has been very beneficial to the credit union in getting our name out in the community,” Russell said, noting there some basic analytics tied to the effort. “It’s about relationships—future relationships.”
Russell said the program is not a major piece of its marketing investment each year.
“In 2019 we spent $9,000 on 5820, and in 2020 the amount was $5,000,” she said.
The drop-off in activity last year, due to the pandemic, is the reason Westerra has relaunched 5820.
“In the past few years we’ve added some data analytics to this, looking a little more closely at the return on this money we spend,” Russell said.
Digging into the Data
What the credit union has been digging into the data to find out is if the members who sign up with Westerra as a result of 5820 stay with the credit union.
“What we are seeing is these relationships are continuing to grow. So, a kids’ savings account turns into a savings and checking, and then they need a money market or a CD, and then a loan…,” said Russell, who said both older and younger adults have been taking advantage of the program. “These accounts and relationships are growing for us.”
The credit union primarily markets 5820 with flyers that are distributed to an interested school, and the flyers are also given to students who sign up with the credit union for a new account. From there, the kids hand out the flyers among their peers and team members.
“The teams give the flyers to their parents, and to their teachers, as well, to hand out,” said Russell. “This way distribution is easy for us and goes to the people who may be interested in supporting the school.”
Part of the DNA
Russell emphasized that supporting local schools has always been a part of the credit union’s “DNA.” Westerra provides financial literacy programs to schools and $500 annual grants, as well.
Russell summed up 5820 as a program that builds relationships and boosts Westerra’s awareness for a price that initially may seem like it’s a lot.
“But it’s not. This is a very worthwhile and effective way for the credit union to strengthen our position within the communities we serve,” she said.