Red Canoe Expands Branch Network with Great Success

Amy Davis
August 12, 2009 | COMMENTS

Just two years after its name change, Red Canoe Credit Union opened its sixth branch location in Kelso, Washington, a sister city to Longview, Washington, where the $520-million credit union is headquartered. Recognizing their two Longview branches were over-capacity, management decided to locate over the river in Kelso, where the credit union serves over 4,000 households.

To commemorate the event, Red Canoe launched a massive marketing campaign, aimed at all branch networks and their legacy national membership of over 13,500 members living outside the Pacific Northwest.

The Kelso grand opening had two primary purposes: 1) celebrate a branch in a new community where the credit union has a large membership base, and 2) fuel deposit growth for its rising mortgage loan growth.

Red Canoe took a similar approach to grand reopening events held in 2007 after the name change, which were developed with the assistance of Weber Marketing Group. For the Kelso event, an above-market certificate rate of 4.25% APY for 15 months and 2% off external auto loan refinancing, with a floor of 4.99%, were offered. The credit union projected a $35-$40-million growth in deposits and $1.9 million in auto lending.

In total, Red Canoe took in $66 million ($47 million in new money) in certificates and $2.7 million in external auto refinancing in one week. It also opened 691 new accounts and over 2,300 people visited the new branch location. Over $45,000 was spent on the entire campaign, including mass media and postage. Overall, the credit union projects a 15-month net profit of $351,000. In addition, it anticipates holding at least 70% of the deposits, which will account for higher future net income for the credit union. Subsequent lending promotions have been launched since the event and Red Canoe has had over 11% net loan growth year to date.

The keys to success of a promotion like this? Consistent message in marketing and a staff ready and willing to perform the brand. The marketing campaign was one of the biggest campaigns launched outside of the name change, encompassing mass media in several channels, direct mail, e-commerce, and branch merchandising. In addition, the investment in a sales culture proved successful for Red Canoe. For every member coming in for the special, staff took the opportunity to look for additional business, which often translated into moving IRA funds or buying out additional loans.

Amy Davis is vice president of marketing for Red Canoe Credit Union in Longview, Washington. Contact her at adavis@redcanoecu.com.