How to Launch Business Services

Kathleen Litman
September 18, 2007 | COMMENTS

When Technology Credit Union's senior management team decided in 2005 to develop a suite of business accounts to complement existing business loan products, it understood that in addition to effectively positioning these services to a niche market (businesses with 10 or fewer employees to start), having the right leadership and a well-trained front-line staff would be essential for a successful launch.

Tech Credit Union ( San Jose, California ) took a measured approach to the launch to provide better service to members. It rolled out the products in two phases: a “soft” launch in April 2006, followed by an official launch in mid-July.

The soft launch introduced the core new products, business checking and savings accounts, plus two referral services, merchant processing and payroll services, and a reintroduction of various business loans (auto, personal lines of credit, apartment, and credit cards) the credit union had offered during the previous two years. The official launch followed with money market and certificate accounts, cash management, and business debit cards.

Instead of trying to train every employee in every branch in time for the Phase 1 launch, the credit union extensively trained a handpicked group of the most seasoned employees. A manager who had developed the business loan program training for the branches led the training.

Then, these "specialists" were charged with coordinating training for the rest of their department. Each branch then had one or two "subject matter experts" available, plus all staff were trained to some degree.

Selecting the right individual (assistant vice president level) to lead this new division also was key. The credit union spent considerable time (mid- to late-2005) seeking a candidate with significant experience in business services and business lending to build the division from the ground up.

Unable to find the right person outside Tech Credit Union, the credit union looked internally. Given the heavy focus on service and relationship-building, it selected the assistant vice president from a division that exemplified the highest service level—the private banking group.

This person already knew Tech's products and services, had a strong operational background, and was familiar with the business lending side. And because many private banking members also were small-business owners, word of mouth created new business relationships within the first month.

From a marketing standpoint, the soft launch was low-key to allow employees to become familiar with the new products over several months. The credit union created flyers for the branches, updated the website's business services section, and posted a notice under “News.”

For the July launch, however, Tech Credit Union prominently featured the business services on its home page, published an article in its quarterly magazine, ran numerous ads in business publications throughout July and August, created a brochure and application kit, and sent an e-mail campaign to selected members, including those who already had "dba" accounts.

Tech Credit Union sent out a formal press release and contacted key media for possible stories. It updated signage at financial centers to include in-branch posters and Inlighten screens. Balloons customized with the business services logo were at all branches for the first week.

The next step in the marketing plan was to implement a targeted direct-mail campaign using members identified as business owners through a third-party vendor, Experian.

In September, the credit union began marketing to the community through a prospect direct-mail campaign, using outside mailing lists within targeted zip codes. Future plans for the website include developing educational articles helping small businesses understand the key elements needed for starting a new business.

And because Tech recently added television advertising as part of its media plan, the next commercial will focus on business services.

Kathleen Litman is vice president of marketing for Technology Credit Union, San Jose, California . This story first appeared at www.creditunionmagazine.com and is reprinted with permission.