Situation
Qualstar Credit Union’s motto proclaims, “We’re not here to make money, but to help our members make better use of theirs.” In today’s tough economic climate, this phrase may have more meaning to more people than ever before.
Qualstar, a northwest institution, opened its doors in 1952 to serve the employees of the Seattle division of Safeway. Today, the credit union serves 58,000 members statewide with $344.4 million in assets.
In 2008, Qualstar Credit Union began to look for a strategy to grow their base of Visa cardholders, while staying true to their promise to help their members make better use of their money. Cognizant of the tough conditions in the market, Qualstar knew the key to success would be long-term sustainability, but they were also concerned about their ability to offer a long-term rewards program due to cost.
Approach
As Qualstar considered Passport on Credit, there were two attributes, which made the program most attractive: ease of implementation and cost. Management was intrigued that Passport on Credit required no infrastructure changes and no I.T. involvement. Financially, the program was the only they could find which offered ongoing and meaningful benefits, delivered right at the point-of-sale, at an affordable monthly investment.
Asked about the evaluation process, Qualstar’s Kelli Purry explained, “…Passport was less expensive than all the other “reward” programs we looked at, and the appeal/benefits outweighed…concerns about cost.”
Outcome
A year into the program, Kelli reports that “The [Passport on Credit has given] our front line staff…another feature to “sell” the [Visa] card to members. [Passport] is proving to be a great selling point.” From an existing member perspective, Kelli tells us that members love “the fact that there really is nothing for them to do in order to get the reward… “In addition, the introduction of Passport on Credit has also been a timely response to widespread increased interest in saving money and frugality. As Kelli summarizes, “Because of the economy, people want to save money and that’s what Passport is all about!”