CSCU Annual Meeting “Journey to Success” May 3-6, 2001 R. Frank Weidner United Airlines ECU.
-
Upload
shannon-ray -
Category
Documents
-
view
217 -
download
3
Transcript of CSCU Annual Meeting “Journey to Success” May 3-6, 2001 R. Frank Weidner United Airlines ECU.
Card Penetration By Credit Score
Discovery
0%
5%
10%
15%
20%
25%
30%
500
530
560
590
620
650
680
710
740
770
800
% o
f M
em
be
rsh
ip
Classic Platinum
Avg. Card Balance by Score
1,0191,511 1,514 1,396
756
2,298
3,771 4,0303,295
1,336
0
1,000
2,000
3,000
4,000
5,000
0-549 550-599 600-639 640-699 700+ Credit Score Range
Classic Card Platinum
Discovery
Breakeven Interest Rate
11.4%
9.4% 8.9% 9.2%8.3% 7.8%
6.6%
14.8%
10.3%
13.2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0-549 550-599 600-639 640-699 700+
Inte
rest
Rat
e
Classic Platinum
Discovery
• Increase Penetration across all scores
3,000 New Accounts ( 6.25% )
• Increase Balances / profitability
$10 Million New Balances ( 18% )
Goal
Performance Pricing + Intro Rate
Strategy
Credit Grade
Intro Rate
Fixed Rate
A 0.0% 10.9%
B 0.0% 12.9%
C 6.9% 15.9%
D/E n/a 19.9%
• Non Card Holders:– Target Mailing A, B, C members offering new rates + Intro.
– Application + Balance Transfer Form
– 0.4% discount for automatic payment
• Existing Card Holders:– Letter checks if available > $1000
– Offer 0% or 6.9% intro rate for 6 months
– No drop in their rate unless they apply for line increase
– 0.4% discount for automatic payment
– Reprice existing D/E cardholders to 19.9% to cover cost.
Strategy
• 6,000+ New Accounts ( 12%+ growth)
• Strong Response Rates– A credit = 9.9%
– B credit = 9.5%
– C credit = 8.3%
• $20 Million New Balances ( 30%+ growth)
• Retention of 65% of New Balances ($14m)
Results