UICCU and TMG: A Partnership that Pays Off
In 2001, University of Iowa Community Credit Union (UICCU) went in search of a new partner to handle credit and debit card services. The credit union chose TMG (The Members Group), based largely on value. “There was a significant cost-savings with TMG,” says Jim Kelly, senior vice president of marketing for UICCU. But the credit union got much more than it bargained for: TMG spurred credit card growth, increased revenue and delivered innovative products backed by attentive service.
TMG provides a range of marketing and administrative services to UICCU, including developing and launching successful new products and promotions. Last year UICCU enhanced its existing Platinum Visa by adding a rewards program that let members earn up to 1% cash back on purchases. TMG developed program features, designed and tested the cards and now manages the process of crediting rewards to each account.
A recent member survey about the rewards program returned positive feedback. Bottom-line results are good too. The number of UICCU Platinum Visa cards grew 333% in the first year. The interchange and fee income per card is $60 per year — well above the credit union’s other cards. Kelly says that launching successful new promotions like the Platinum Visa rewards program is one of TMG’s greatest strengths. “We try to be cutting edge so we need a partner that can act fast,” he says. “The Members Group always does a very good job of listening and then responding to our needs.”
In another recent promotion, TMG helped implement a “life of balance transfer” for UICCU members who didn’t have a credit union credit card. TMG built the program and tested it to ensure it worked smoothly. Now TMG manages how payments are applied to member accounts. The promotion brought in more than $1 million in additional balances. Another success according to Kelly. “TMG has been a big part of our success and credit card growth over the last few years.”
