2011 Strategic Plan
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Growth Strategy • Increase penetration and sales of existing products and services within Alabama and Florida. • Develop new markets for existing products and services outside our states with an emphasis on the Southeast. • Partner with other system partners to bring best in class products and services to the Southeast. • Selectively manufacture new products where there is a clear need and business opportunity in the marketplace. • Acquire our invest in existing businesses with a proven track record of success.
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CORE FUNCTIONS (BUSINESS UNITS) Manufactured Products
Value-Added & Distributed Products
Transactional Services
Value-Added Products
Debit Cards Credit Cards Chargeback Services Gift Cards CUSC
Remarketing Sprint Office Depot
CU-ACE Ventelligence HRx Recruiting PEO/ASO Services Salary Administration
Distributed Products CUNA Mutual Group NADA/Blackbook John M. Floyd Telecom Recovery NewGround Invest in America CUNA Strategic Services
Product Development Develop new ideas and solutions. Enhance or improve existing products. Market research. Develop product Model. Determine pricing, revenue and ROI Models. Prepare business Case. Identify vendors. Perform due diligence. Launch.
Sales
Marketing
Develop sales plans and strategies. Generate leads. Identify areas of need. Stimulate interest. Diagnose needs and create proposals. Close sales. Sales implementation and follow-up.
Manage brand for LEVERAGE. Develop positioning statements and marketing plans. Promote LEVERAGE products. Manage website Content.
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Manufactured Products | Transactional Services Credit Cards
Objectives • Provide a competitive credit card product to credit unions that will effectively serve the member and grow income for the credit unions. • Maintain 100% renewal of current credit card business.
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Manufactured Products | Transactional Services Credit Cards Strategies • Determine long term strategy for processing partner. • Expand product features to include live after hours support regardless of processing partner. • Develop strategy for combining programs for improved billing and performance tracking. • Develop consistent proposal template for Business Development and Account Management staff. • Determine penetration opportunities for new sales.
Key Activities • Develop consistent pricing and proposal format available for both Business Development and Card Services Account Manager. • Continue to look for a processing alternative. • Continue dialogue with CO-OP Financial Services regarding the feasibility of live after hours support. • Educate Business Development and Account Manager on features and of current product offering. • Develop a list of contract renewal dates between credit union and FIS. • Evaluate consultative services for organic growth.
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Manufactured Products | Transactional Services Debit Cards
Objectives • Maintain 100% renewal on existing debit card agreements. • Assist credit unions in achieving a 5% growth annually in debit card transaction volume. • Increase market penetration from 31% to 60% over the next 5 years.
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Manufactured Products | Transactional Services Debit Cards Strategies • Determine contract renewal dates for Florida debit clients. • Conduct regional promotional training meetings for existing clients. • Target all credit unions for surcharge free network access potentially creating opportunity for future processing business. • Build awareness for CO-OP Surcharge free ATM network, processing services, and other related products as appropriate.
Key Activities • Closely monitor all migration activities for accuracy and keep CO-OP accountable when there are issues. • Standardize CO-OP billing in a way that is easily understood by existing clients. • Standardize proposal documents for consistency going forward. • Utilize and promote the use of “canned” webinars for ongoing training. • Continue to closely monitor FIS activities with current debit clients to keep from jeopardizing any existing business. • Continue to pursue Call Center opportunities.
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Manufactured Products | Transactional Services Chargeback Services
Objectives • Provide credit unions with a competitively priced and effective alternative to core processor chargeback programs.
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Manufactured Products | Transactional Services Chargeback Services Strategies • Achieve cross training between Cardholder Recovery and Card Services to better support both areas in times of need. • Complete more extensive Gift Card training to help support growing Florida client base. • Add to number of staff available for password reset services and dispute analysis.
Key Activities •
•
•
Add additional scanning capability either through an additional scanner or utilize existing copying equipment if security can be maintained. Get staff to proficient enough to free Director to process bond claims in a timelier manner. Cross train with Card Services staff in order to share resources when there are absences, vacations, etc.
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Manufactured Products | Transactional Services Gift Cards
Objectives • Provide a profitable and efficient gift card program to credit unions.
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Manufactured Products | Transactional Services Gift Cards Strategies • Develop creative promotional offerings to incent change from existing programs. • Develop programs allowing for donation of portion of proceeds to charitable organizations.
Key Activities • • •
Provide additional training and access to continue timely support. Improve consistency of all contact staff in promoting the product. Provide “seasonal” promotion to take advantage of peak sales periods throughout the year.
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Key Performance Measures
’10 Goal
‘10 Actual
’11 Goal
85
85
85
’11 Actual (1Q)
’11 Actual (2Q)
’11 Actual (3Q)
’11 Actual (4Q)
Transactional Services Credit Cards # of Credit Unions on Program # of Cards Outstanding Gross Credit Card Revenue
89,587
120,000
$320,000
$428,375
Debit Cards # of Credit Unions on Program
55
55
57
# of Transactions
56,025,640
55,000,000
Gross Credit Card Revenue
$1,708,782
$1,368,336
12,500
11,000
80
94
# of Cards Sold
13,478
17,000
Gift Card Revenue
$26,956
$39,870
Chargeback Services # of Transactions Gift Cards # of Credit Unions on Program
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Manufactured Products | CUSC Objectives • To provide Alabama credit unions with an efficient and cost effective delivery network for transactional member services. • To create a brand for CUSC of Alabama. • To grow the number of outlet locations for member access to transactional services. • To grow the number of transactions performed by participating credit unions in the network. • Investigate new sources of revenue for the corporation. 13
Management Agreement for CUSC Operations Priorities
Key Activities
Product Mix
Research and develop new transactional products and services.
Pricing
Review existing pricing model. Examine pricing strategy to incent credit unions to join the network. Develop pricing strategy for core system expenses.
Certification Reimbursement
Examine opportunities to reimburse users for certification fees to join the network.
Progress Update
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Management Agreement for CUSC Operations Priorities
Key Activities
Training & Support
Review current training and looks for ways to improve delivery to network credit unions. Expand delivery of onsite training to network credit unions. Increase operational support to outlet locations. Decrease time of audits for outlets.
User Survey
Create and disseminate a user survey to gauge user satisfaction with the network.
Outlets
Target new outlet locations in areas where service gaps exist. Utilize demographic analysis to assist with outlet placement.
Progress Update
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Management Agreement for CUSC Marketing Priorities
Key Activities
CUSC Brand
Review current logo and perceived brand.
Website
Redesign website to make it more functional and user friendly.
Marketing
Develop a comprehensive marketing strategy that includes a turn-key marketing program for network credit unions. Explore opportunities to participate in LSCU statewide brand campaign.
Member Communications
Create an electronic quarterly member publication.
Sponsorships
Look for opportunities to exhibit at League and other system partner events.
Progress Update
16
Management Agreement for CUSC Sales Priorities
Key Activities
Network Growth
Develop an aggressive outreach plan to attract Non-participating credit unions onto the network. Utilize demographic data as a sales tool for increased credit union participation.
Conservation
Complete a network business review (status of the network) with each user on a yearly basis.
Non-User Contacts
Visit Âź of non-users on a quarterly basis.
Progress Update
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Management Agreement for CUSC Structure & Governance Priorities
Key Activities
Management Agreement
Review current Management Agreement and make recommendations to the Board for changes.
Bylaws
Review Bylaws and make recommendations to the Board for changes.
Resources
Develop a chart of LEVERAGE resource assignments for performance of CUSC activities.
Consolidation
Research the advantages and disadvantages of consolidating CUSC with the Florida Credit Union Shared Services (FCUSS).
Progress Update
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Management Agreement for CUSC Key Performance Measurements Goals
Target
Outlet Growth
7 New Outlets
New Issuers
4 New Issuers
Transactions
886,000 Total Transactions
Pricing Strategy Review
Complete by beginning of 3rd Quarter
Bylaw Changes
Complete by end of 2nd Quarter
Brand/Marketing Review
Complete by end of 1st Quarter
Actual
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Management Agreement for CUSC Key Performance Measurements Goals
Target
Outlet Income
Increase outlet income by 10%
Management Contract
Update Management Contract by end of 1st Quarter
Satisfaction Survey
Complete user satisfaction survey by end of 3rd Quarter
Demographic Mapping
Purchase mapping software and user data by end 2nd Quarter
Actual
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Management Agreement for CUSC Key Performance Measurements Goals
Target
User Data Mapping
Complete and disseminate demographic map data to network users by end 4th Quarter
User Communication
Create quarterly user communication by 1st Quarter
Conservation
Complete network review visit with each user by end 4th Quarter
Sales Plan
Complete sales plan by end of 1st Quarter
Turn-Key Marketing Plans
Complete by end 2nd Quarter
Actual
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Manufactured Products | CU-ACE Objectives • Provide credit unions with a high quality, cost effective audit and compliance service. • Achieve a 10% annual revenue growth rate.
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Manufactured Products | CU-ACE Strategies • Improve efficiencies to allow for more billable time for auditors. • Develop professional marketing and proposal materials. • Build awareness for CU-ACE’s services in Florida and with nonaffiliates in Alabama. • Focus on organic growth of services with existing clients. • As capacity allows, target credit unions in the Florida Panhandle.
Key Activities • • • • • •
Add a shared compliance staffing model to product mix. Streamline Information storage practices. Improve efficiency of billing processes. Develop more efficient and automated time keeping methods. Enhance the proposal format. Develop more extensive marketing and presentation materials.
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Key Performance Measures
’10 Goal
’10 Actual
’11 Goal
’11 Actual (1Q)
’11 Actual (2Q)
’11 Actual (3Q)
’11 Actual (4Q)
CU-ACE # of Invoices Gross Revenue
385
346
$625,310
$488,800
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Manufactured Products | Ventelligence Objectives • Provide leading-edge purchasing services for credit unions. • Establish Ventelligence as the ePurchasing resource for credit unions. • Become a resource for business intelligence about suppliers for credit unions.
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Manufactured Products | Ventelligence Strategies • Target credit unions for participation in a buying group. • Increase full usage of the product by existing customers. • Educate potential users about ePurchasing. • Enlarge out-of-core market distribution. • Enlarge the buying group.
Key Activities • • •
•
Target credit unions outside of Alabama and Florida. Develop enhancements to the existing product. Provide more opportunities for education and information on the values of ePurchasing. Provide additional support to current users for full implementation.
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Key Performance Measures
’10 Goal
’10 Actual
’11 Goal
# of Users
75
63
73
# of Auctions
25
10
21
’11 Actu al (1Q)
’11 Actual (2Q)
’11 Actual (3Q)
’11 Actual (4Q)
Ventelligence
Gross Revenue
$130,000
$295,000
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Manufactured Products | HRx Objectives • Provide high quality CEO searches for small to midsize credit unions. • Provide high quality Executive Searches for mid-size to large credit unions. • Stay in the marketplace and explore opportunities for future growth.
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Manufactured Products | HRx Strategies • Maintain strong relationships with PEO/ASO vendors. • Build greater awareness for HRx executive search services with the small to mid-size credit unions in the Southeast.
Key Activities • • •
Protect our current revenue stream from existing partnerships. Deliver searches to the small to midsize credit unions in the Southeast. Re-evaluate the current HRx model; look for opportunities to partner with national firms.
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Key Performance Measures
’10 Goal
’10 Actual
’11 Goal
4
4
5
’11 Actual (1Q)
’11 Actual (2Q)
’11 Actual (3Q)
’11 Actual (4Q)
HRx # of Executive Searches Gross Revenue – All HRx
$120,300
$171,350
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Value-Added Products/Vendor Management Remarketing
Objectives • Add 50 new credit unions per year to the remarketing service over the next 5 years.
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Value-Added Products/Vendor Management Remarketing Strategies • Continue to concentrate growth efforts for program in Alabama and Florida. • Work through league service corporation partners to develop program in other states. • Create awareness through quarterly publications, email campaigns and industry publication press. • Increase number of credit union vehicles sold via TitleAuctions channel.
Key Activities • Involve sales staff in “Day at Auction” meetings. • Create process for regular communication schedule with all credit union partners. • Conduct business reviews on an semiannual basis with large credit union clients. • Regularly promote service through quarterly publication and E-Signal. • Work with Cooperative Initiatives Department staff to create program and implementation process for SAS CUs. • Enhance the title auctions product.
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Value-Added Products/Vendor Management Sprint
Objectives • Achieve 100% renewals. • Capture 60% of the potential market over the next 5 years.
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Value-Added Products/Vendor Management Sprint Strategies • Continue to concentrate growth efforts for program in Alabama and Florida. • Develop turnkey sign-up package and marketing materials that will minimize the amount of time it takes to sign-up or renew CUs. • Adhere to regularly scheduled meetings and calls with IIA team and state based resellers.
Key Activities •
•
•
•
Work with Management Team and sales team to effectively reach larger opportunities. Utilize website, email campaigns, Signal and eSignal to promote program on a regular basis. Identify opportunities with credit unions that have strong business account relationships. Work closely with state based resellers to create credit union promotions.
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Value-Added Products/Vendor Management Office Depot
Objectives • Achieve $10,000,000 in annual purchases by credit unions by 2016.
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Value-Added Products/Vendor Management Office Depot Strategies • Continue to promote brand awareness. • Focus on organic growth and increase average spend per credit union. • Rejuvenate strategic state league service corporation participation.
Key Activities •
• • •
Spark interest in existing state league service corp. partners and maintain regular, consistent contact. Offer semi-annual business review to individual league service corps. Create on-boarding process for new sign-ups. Utilize all points of LSCU and LEVERAGE contact to educate credit unions on program benefits and differentiation of BSD vs. Retail Program.
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Value-Added Products/Vendor Management Distributed Products Objectives • Market and sell a variety of top quality products and services on behalf of selected vendors. • Earn a minimum of $50,000 in annual revenue for each distributed product or service.
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Value-Added Products/Vendor Management Distributed Products Strategies • Continue to promote John M. Floyd Association Services to credit unions in Florida and Alabama. • Promote NADA with a focus on moving credit unions from paper guides to the on-line service. Develop standard guidelines for positioning, marketing and delivering our non-top line products.
Key Activities • • •
Review contractual agreements. Re-assign internal liaisons. Limit website exposure of partners.
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Key Performance Measures
’10 Goal
’10 Actual
’11 Goal
Gross Revenue
$322,500
$213,000
$258,750
# of Cars Sold
6450
4262
8,000
Title Auction Cars Posted
600
521
700
Title Auction Gross Revenue
$95,000
$69,000
$75,250
45
55
80
$325,000
$442,000
$701,500
1250
1146
1,200
$4,300,000
$3,950,000
$5,000,000
’11 Actua l (1Q)
’11 Actu al (2Q)
’11 Actual (3Q)
’11 Actual (4Q)
Value Added Products Remarketing
Sprint # of Credit Unions Gross Revenue Office Depot # of Credit Unions Total Purchases Distributed Products
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Exhibit & Sponsorship Sales Objectives • Provide mutually beneficial opportunities for system partners to support the League and Leverage through sponsorship at LSCU & Affiliates events. • Provide a revenue stream that supplements the cost of attending these events for member credit unions.
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Exhibit & Sponsorship Sales Strategies • Target past exhibitors and sponsors for 2011 AC&E. • Promote AC&E to potential new exhibitors. • Develop link between sponsorship levels, opportunities and additional opportunities to advertise. • Create an “Annual Opportunity” package for strategic partnerships. • Research other association sponsorship and exhibit activities. • Promote Development Conference to potential new exhibitors. • Work with all departments to assist with additional sponsorship opportunities.
Key Activities •
• • •
Define marketing department’s process as it relates to fulfillment of sold sponsorship opportunities. Establishing earlier timeframes to begin sales process. Create annual sponsorship packages for key strategic partners. Increase awareness and value of exhibit/sponsorship opportunities through quarterly Signal magazine advertising.
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Key Performance Measures
’10 Goal
’10 Actual
’11 Goal
$235,000
$291,268
$$321,547
$154,000
$124,666
$162,000
0
$12,000
$18,000
’11 Actu al (1Q)
’11 Actu al (2Q)
’11 Actual (3Q)
’11 Actual (4Q)
Exhibit & Sponsorship Sales Exhibit Revenue Sponsorship Revenue Signal Advertising Revenue
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Product Development Objectives • Develop innovative new products for our credit unions that improve efficiency, reduce expenses, increase revenue for credit unions and provide revenue to LEVERAGE. • Develop partnerships with other system leaders to bring proven products and services to our market.
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Product Development Strategies • Where needed, utilize outside consultants in development process. • Involve sales earlier in the development process. • Refine the launch process. • Develop methods of defining value for making product development decisions. • Increase speed of movement of products through the development pipeline.
Key Activities • •
•
• • •
Train and develop new Director of Product Development. Prioritize projects; utilize product development pipeline report to keep projects on track. Develop “Product Teams” from across the organization to work on new project development. Get more input from credit unions. Utilize outside consultants when needed. Evaluate life-cycle and performance of current products.
44
Marketing Objectives • Grow awareness and credibility for the LEVERAGE brand. • Maintain a high quality and creative marketing function for LSCU & Affiliates.
45
Marketing Strategies • Focus on making the LEVERAGE brand a well-known name among credit unions and partners. • Develop a marketing plan specifically for LEVERAGE. • Define how partners and manufactured products will be positioned by LEVERAGE. • Assist sales team in developing content and messaging for individual products/services. • Continue providing marketing support to Association Services.
Key Activities • • • •
•
Develop better process for intake of projects. Establish timeline for each project once content is submitted. Identify project priority at the beginning of each project. Pre-plan content for publications, i.e., eSignal, Signal, monthly LEVERAGE emails, etc. Look for greater synergy and collaboration between Marketing and Communications staff.
46
Sales Objectives • Grow penetration and revenue for LEVERAGE product lines. • Develop a distribution system that establishes LEVERAGE as the preferred partner for attracting the best products and services provided by vendors. • Develop market penetration opportunities outside Alabama and Florida.
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Sales Strategies • Increase product and service sales as well as market share in core and non-core markets. • Develop expert level product knowledge. • Develop superior relationship with credit union. • Create best-in-class professional consultation and education of products and services. • Improve workflow efficiencies.
Key Activities • • • •
•
Build brand awareness in core and non-core markets. Offer products in non-core markets. Expand on building long-term credit union relationships. Train sales staff and integrate technology more fully into the sales support function. Train CU-ACE and Cooperative Initiatives staff to cross-sell products and services.
48
Key Performance Measures
’10 Goal
’10 Actual
’11 Goal
’11 Actual (1Q)
’11 Actual (2Q)
’11 Actual (3Q)
’11 Actual (4Q)
Sales CUNA Mutual Gross Revenue
$1,800,000
$1,826,767
Points Earned
18
18
18
# of Users
75
63
73
# of Auctions
25
10
21
Gross Revenue
$130,000
Ventelligence
$295,000
HRx # of Executive Searches
4
Gross Revenue – All HRx
$120,300
4
5 $171,350
49
Key Performance Measures
’10 Goal
’10 Actual
’11 Goal
85
85
85
’11 Actual (1Q)
’11 Actual (2Q)
’11 Actual (3Q)
’11 Actual (4Q)
Transactional Services Credit Cards # of Credit Unions on Program # of Cards Outstanding Gross Credit Card Revenue
89,587
120,000
$320,000
$428,375
Debit Cards # of Credit Unions on Program
55
55
57
# of Transactions
56,025,640
55,000,000
Gross Debit Card Revenue
$1,708,782
$1,368,336
12,500
11,000
80
97
# of Cards Sold
13,478
17,000
Gift Card Revenue
$26,956
$39,870
Chargeback Services # of Transactions Gift Cards # of Credit Unions on Program
50
Key Performance Measures
’10 Goal
’10 Actual
’11 Goal
Gross Revenue
$322,500
$213,000
$258,750
# of Cars Sold
6450
4262
8,000
Title Auction Cars Posted
600
521
700
Title Auction Gross Revenue
$95,000
$69,000
$75,250
45
55
80
$325,000
$442,000
$701,500
1250
1,146
1,200
$4,300,000
$3,950,000
$5,000,000
’11 Actua l (1Q)
’11 Actual (2Q)
’11 Actual (3Q)
’11 Actual (4Q)
Value Added Products Remarketing
Sprint # of Credit Unions Gross Revenue Office Depot # of Credit Unions Total Purchases Distributed products 51