The Future of CU*BASE Tiered Services

1. The Future of CU*BASE Tiered Services Tiered Services Development Focus Group October 9, 2008

2. Agenda • Tiered Services: Then and Now • Tiered Services & the new GOLD Standard (sneak peek) • A Look at Your Peers • Aggregating Tiered Services Statistics • Brainstorming • Projects Already in the Pipeline • Your Wish List • Member Rewards Collaborative • Marketing Your Tiered Services Program • What else is on your mind?

3. Tiered Services: Then and Now

4. Tiered Services: Then and Now

5. The New GOLD Standard for Tiered Services

6. A Look at Your Peers Aggregating Tiered Services Stats for all CUs

7. Aggregating Tiered Services Statistics • The cliché is, don’t recreate the wheel, but it’s more than that...how do we use a decade of learning about relationships and relationship management techniques so that everyone sees the value?

8. Aggregating Tiered Services Statistics • We plan to add a new feature that creates an aggregate data file once a month • To begin, will include only online CUs, but we can eventually export a file to self processors for their use as appropriate – to be determined • Compare your Tiered Service numbers to a group of peers or even a single peer • Choose a peer group based on asset size, number of members, and household scoring choice • Group stats by asset size groups ($0-$10M, $10M-25M, etc.) and member size groups This isn’t just a Tiered Service proof-of-concept; this is an example of the type of network view we could have across the board

9. Brainstorming What’s on your wish list?

10. Projects Already in the Pipeline • Extending Tiered Services to the member in It’s Me 247 online banking...deepening the visible relationships with members • Part 1: What points did I get and how did I get them?(in beta now for Fall 2008 release) • Part 2: What rewards do I get for those points? • Part 3: Redeem my points! View original prototype

11. Other Projects in the Pipeline • From the PLM: = not displayed in Monitor online

12. Let’s BrainstormEnhancements to Consider • More things to score? • Presence of email address (as long as it’s not a wrong one!) • Transaction points (credit card usage, debit card usage, etc.) • Shared branch usage • What else would you like to be able to track? • Other config changes? • Move OTB or online credit card to Goal 3 (Lending) instead of Goal 4 (Self Service)? (This will have a BIG impact!)

13. Let’s BrainstormEnhancements to Consider • Rewards to add? • Waive minimum balance service charges (account service charges, transaction service charges) via Tiered Services • Do you understand how you can already do this via a Tiered Service Marketing Club? • Rate benefits, too! • Automated enrollment/unenrollment • Summarize the cost benefit to the member each month • “As a Gold Level member, in August you saved $30.00 in waived check cashing fees, $13.00 in waived corporate check fees...” • Report to member in online banking • Include on statements? Or might this take up too much real estate? • What other rewards would you like to offer?

14. Let’s BrainstormEnhancements to Consider • New technique allowing for unlimited product codes to be selected

15. Let’s BrainstormEnhancements to Consider • PFI points • Can include unlimited DIVAPLs but are there other things to consider here besides share account types, like a mortgage? • Measuring “active” vs. just having an account? Is PFI as a separate goal/measurement still relevant? The blended concept of savings, loans, service selections, and automation might better describe PFI

16. Let’s BrainstormEnhancements to Consider • A separate Tiered Services configuration for your business accounts • Configurable option to exclude master type MO from regular Tiered Service scoring, giving you three choices: • Score them same as individuals (like now) • Avoid scoring them altogether • Score them according to a separate point system • Points only? Or would you also want separate rewards? Different point groups / tier levels? • What about the Household scoring option? If a household contains an organization, should it be ignored? In all cases, or just according to this new config flag?

17. Let’s BrainstormEnhancements to Consider • Lifetime Points • Grant starter lifetime points to new members prior to first month’s scoring • Fix on adding/subtracting lifetime points for individual members • Cap on total lifetime points? • Rolling year (or two or three) instead of lifetime accumulation? • Redeeming lifetime points while opening accounts, working in online banking...? Is the Lifetime Points concept a focus group all by itself?

18. Member Rewards Collaborative An Xtend Member Reach and Partners in Practice Initiative

19. Member Rewards Collaborative • A member reward program run by the CU, based on whatever the CU wanted and that CU*BASE could count • So if you wanted to combine Tiered Services points (lifetime) with points for credit or debit card usage and then grant redemption rewards, you could • If you wanted to just count credit and debit card purchases and then grant redemption rewards, you could • If you wanted to just count Tiered Services points and then grant redemption rewards, you could • If you wanted to count anything we could code (e.g., total deposits from anywhere, total bills paid, etc.) and then grant redemption rewards, you could

20. Member Rewards Collaborative • The advantage to the credit union is that the programs would be native or internal to their operations • Instead of a third-party’s distribution channel (web, call center, etc.) and notification channels (special statements, special statement merges, web, email, etc.), CU*Answers and the credit union could modify their existing channels and avoid additional handling costs for these services that make the reward programs so expensive

21. Member Rewards Collaborative • To make this valuable, we need to develop some sort of redemption catalog that combines credit union service discount options with the ability for members to get third-party value items as well • A natural for stored-value cards • I believe that we will have an audience for a "do-it-yourself" rewards software options, but I believe we will have an even bigger audience for CUSO coordinated reward services • FIS is not offering these programs without wide margins...we can offer them without any perceived margins at all

22. “Gividends” • Gividends Rewards Management (GRM) – a new collective effort and processing initiative brought to you by Xtend and its partners at cuasterisk.com • GRM is a new effort by the Xtend team to work closely with the credit unions who utilize the CU*BASE core processing platform for their member rewards programs • Combines the Tiered Service feature set with a member rewards fulfillment capability that allows credit unions to • Merge transaction reward points with core member relationship points • Market the advantage of credit union rewards • Manage the redemption of member points for credit union and general marketplace value on demand

23. Marketing Your Tiered Services Program A Complete Tiered Services Marketing and Implementation Package Brought to you by TAG and Partners in Practice 23

24. Tools You Already Have • Breaking down the Tiered Services Implementation Guide...more than just the “how to” • Is Your Membership Moving Toward the Bull’s Eye? – case study and overview to make the case with your staff and board • Step-by-step checklist for implementing a Tiered Service program • PowerPoint presentation: “A Changing Culture” for presentation to your staff

25. Tiered Services: A New Look • For credit unions looking to launch or re-launch a meaningful rewards program rollout • 2 parts to the program: • A Start up or Re-Launch Kit • A Strategic and Creative Marketing Package 25

26. Tiered Service Marketing Package Start-Up or Re-Launch Kit • For first-time CUs as well as those wishing to understand, improve or enhance their current reward programs • A “Tiered Services for Dummies” workbook (name pending) that will help interpret and simplify the technical reference manual • A rollout/implementation calendar, including the regular and periodic work that is recommended to successfully support a program • Training materials for all stages of the program • The “internal marketing” necessary for a successful program 26

27. A “Tiered Services for Dummies” Workbook • The “friendly” workbook will compliment (and decipher) the technical reference manual: • It will interpret and simplify the set up for easier decision making • It will provide worksheets and examples • It will help credit union leaders/coaches understand the internal changes that are needed to ensure a successful program • It will provide examples of how to integrate the program with all of the credit union’s product marketing • It will include examples and recommendations • Pre-launch and post-launch details, etc.   FOR DUMMIES 27

28. Implementation Calendar • A calendar “template” for project managers to modify and use from planning to implementation • Recommendations of approximate timing for all major milestones, such as: • Fee changes • Board approval • Training • Launch • Regular and periodic work that can be done to push the program 28

29. Training Materials • PowerPoint presentation to the managers and staff explaining: • Strategic objectives • Set up of the Rewards program • Roll out • Staff cross selling training • How to talk with the members: explaining the program and how they can get the most out of it 29

30. The Marketing Kit • Package will include: • New Name and Logo artwork • Newsletter articles and statement messages. • Posters, direct mail letters and postcards, inserts and web banners • Specialty items, ad artwork, banners etc available for group purchasing • A Comprehensive Marketing Package will be available through CU*Blitz • CUs will benefit from group printing and mail services • A series of marketing pieces for the launch (or re-launch) period 30

31. The Strategic Creative and Branding Package  Proposed Name: Name will compliment current CU*A products Creative Branding: The asterisk will be used to illustrate the points they can accumulate for rewards! (Customization for creative will also be available) 31

32. Next on the Rewards Horizon • Marketing Clubs • These clubs are an essential part of the Tiered Services program success • To be created and available through CU*Blitz: • Youth • Teens • Young Adults • TAG will develop the creative and start-up kit for the marketing clubs working with the CU*A team • Sample of what is to come: Youth Group Marketing Name and Logo 32

33. What else is on your mind?