Community First Bank Free Checking Pilot Program

Community First wanted to quickly raise checking deposits in five pilot markets: Fargo, Grand Junction, Ft. Collins, Park Meadows and Salt Lake City.

Key Processes Used

The agency worked in conjunction with CFB’s Product Management and Strategic Development unit on:

• Financial Modeling
• Target Market Profiling & Segmentation
• Test Plan Development
• List Sourcing & Database Management
• Message & Creative Development
• Training
• Printing, Distribution
• Reporting and Analysis

Deliverables

Designed three direct mail postcards, each with a different creative theme and offer.

Results

Three different creative themes were tested along with three different offers: $50 cash to open a new account, your choice, or free electronics (CD, DVD or TV/VCR). The promotion raised $600,000 in new deposits from approximately 700 new clients. In addition to Free Checking, new customers opened 2.31 new accounts per household including, savings accounts, check cards, CD’s and new lines of credit. The majority of new checking account holders had activity in their accounts beyond initial deposit (there was concern that people might take the offer and close the account later). Current balances almost doubled compared to their opening balances. The cash creative and cash offer pulled the best, followed by “choice” followed by “electronics.”