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Old 07-17-2006, 11:26 PM   #1 (permalink)
 
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EFT Membership Program

I had the following question asked.

Quote:
I saw a old post about EFT's and you said you had information on what worked well with you and your EFT efforts. Would you mind sending me some advice and information about what you do. I'm getting ready to offer EFT's hopefully next week to my customers. Do you charge for membership/contract? If so how is your agreement written up to cover all corners?
Answer soon.
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Old 07-19-2006, 01:23 AM   #2 (permalink)
 
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Re: EFT Membership Program

OK. Here we go. I started the EFT based membership program 13 years ago. Over the years I have made a lot of mistakes with this program. The last two years have proved to be the best of all 13 thanks to smart people out there that I have listened to. I will mention them later.

Two things I have done that have made the biggest difference are:

Automating the whole process and marketing a sunclub dollar bonus to the members this time of year to retain them for the rest of the year.

The automation process allows me to process their EFTs as often as I want per month. This allows me to not have to prorate any of their fees. Makes it easier to sell and easier for them to understand. If you come in on the 10th of the month we charge you for the first month ($18.88) and we tell you that you will be charged $18.88 next month on the 10th. Simple and easy.

Another part of the automation is the notification of declines. A decline will automatically generate a PSM (explain later) to the customer detailing the decline on their card or ACH. It automatically puts a balance and due date on their account. Accounts with balances older than 30 days causes a PSM to be generated and sent to the client. If they do not pay the balance within 90 days their account gets submitted (automatically) to a credit bureau. When they join the sunclub (our membership) they get a welcome PSM.

This time of year we send them a PSM with a coupon good for $250 Sunclub dollars they can use as long as they keep their Sunclub membership active. The Sunclub dollars expire at the end of this year. This has helped us keep our retention rate below 10%. This is an idea I got from Rick at Suntan City. Thanks Rick.
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Old 07-19-2006, 01:42 AM   #3 (permalink)
 
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Re: EFT Membership Program

What is a PSM. PSM stands for Pressure Seal Mail. I integrated the PSM into ourbackoffice.com along with the automation of our EFT processing.

Ourbackoffice.com generates the PSM files that are printed on a sheet of 11 x 17 PSM paper. The PSM is then inserted into the Pressure Seal Machine which folds it and seals it with pressure. Thus the brilliant name -- Pressure Seal Mail.

We do about 150 pieces of Pressure Seal mail per day. This last week we did close to 6000 pieces.

Below are some pictures of the machine and the Pressure Seal Mail.
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Old 07-19-2006, 01:53 AM   #4 (permalink)
 
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Re: EFT Membership Program

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Old 07-19-2006, 02:06 AM   #5 (permalink)
 
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Re: EFT Membership Program

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Old 07-19-2006, 02:55 AM   #6 (permalink)
 
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Re: EFT Membership Program

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Old 07-19-2006, 10:43 PM   #7 (permalink)
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Re: EFT Membership Program

great idea about the EFT payment dates... do you offer on all levels of equipment? sing up fees and/or cancellation fees? How do you get them to commit?
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Old 07-20-2006, 12:22 AM   #8 (permalink)
 
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Re: EFT Membership Program

We have a four month committment.
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Old 07-20-2006, 10:17 AM   #9 (permalink)
 
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Re: EFT Membership Program

Another thought is to have a short term EFT at one price and a 12 month EFT at an even greater savings that becomes an open end membership at the end of 12 months. As CHUNN has pointed out the real key is retention through contact and additional value. Another method of retention value, instead of giving dollars that can be used until the end of the year. You can offer a given period of time up-grade use. Designate a period of time like 1 month, 2 months , 3 months and so on that an EFT member will be allowed use of level 2 equipment at no additional cost. This is also something that can be used to get a tanner signed up. First month on your level 1 EFT you will get unlimited use of level 2.
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Old 07-20-2006, 01:07 PM   #10 (permalink)
 
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Re: EFT Membership Program

do you charge a sign up fee?
what can they use the $250 towards?
what software and how do you integrate the automated letters?
i used to have 4 dates and would pick the closest one and a 6 mo minimum. now we have raised our prices, one eft day (30th) and 3 month minimum. (this is the worst year in a long time.)
helios makes it difficult to have more than one draft day. (need seperated codes for each day)
do you have more than one EFT level?
we attempt to run all declined CC in house and charge $5 for all declines or rejects. do you lose many customers over the $25 fee?
thanks for all the info.
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