1. Credit Union Central of Ontario AGM & DEVELOPMENT CONFERENCE
W E S I C U O
6 PACK
LIQUIDITY
STRATEGY
P.A. (Pat) Palmer
Principal & CEO
Where Eagles Soar Inc.
April 4, 2008

2. 2008 LANDSCAPE
Canadian Consumers:
Highest shopping promiscuity
Drivers of commoditization
Technological & financial literacy
High personal debt/low savings level
Lifestyle segment differences
Significant economic slowdown hits

3. 2008 LANDSCAPE
Competition:
Proliferation of channels by traditionals
Niche players erode market shares (ING/PC Financial)
Insurance companies cross-over (Manulife)
Retail brand extensions (CTC, GM, HD, etc.)
Intermediary explosion (brokers, planners, agents)
Monolines change to multilines
Internet virtual choices, comparisons and information

4. CORE CHALLENGES FOR DEPOSITS
Offset commoditization influences
Improve product attractiveness and stickiness
Understand depositors’ behaviours
Build value generators
Inspire sales culture
Capitalize on winning ideas

5. WESI LIQUIDITY STRATEGY D E P O S I T
REAL
CANADIAN
SOLUTIONS
Capture More of Members’ Cashflow

6. #1 – MEMBER & PROSPECT PREFERENCES
Analyze segment cashflow characteristics
Identify high/low balance holders
Uncover “best of balance” preferences
Build prototype segment scenarios
- women
- entrepreneurs
- not for profit organizations
- family circles
- employer partnerships
- employee direct creditors
Realize cashflow linkages, values, contingency cushions
Isolate the Best Group Prospects

7. #2 – PRODUCT POSSIBILITIES
Understand competitive S/W of products
Assess sales & service costs
Determine segment preferences
Entrench on boarding culture
Push pre-approved transaction switches
Emphasize non-price values
Coordinate universal channel product messaging
Innovate S/C elimination
Create Product Portfolio Values

8. #3 – DELIVERY CHANNEL CHOICES
Identify member access choices
Link access preferences with all FI’s
Select channel investment targets
Assess channel vulnerabilities
Optimize segment-channel attract values
Examples:
- urban seniors – branch facilities
- suburban families – evening/weekend access
- entrepreneurs – business ATM functionality
Investigate channel partnerships
Integrate robust website/call centre agents
Understand breakthrough trends – social networking
Your Choices – Members Primary Choices

9. #4 – PROMOTION & COMMUNICATIONS
Identify target audiences and messages
Avoid shotgun expenditures
Build segment information and education values
Isolate preferred communications channels
Customize delivery channel messages/maintain
universal themes
Script “calls to action” in everything
Improve personalization of collateral materials
Increase etiquette throughout
Role Play Face-to-Face Messages

10. #5 – ACTION RESEARCH
Uncover action catalysts in member and prospect segments
Determine current and future relationship preferences
Develop continuous, economical research methodologies
“Mine” the member relationship database constantly
Avoid “nice to know” syndicated studies
Test customized value propositions with panels
Evaluate an “incubator site” – brick & click
Be Proactive With Research Findings

11. #6 – RELATIONSHIP VALUE EXPERIENCES
Neutralize commoditization vulnerabilities
Convert “quality of service” into “depositor care”
Activate proactive relationship commitments
Construct segment specific value propositions
Motivate staff as to the value catalysts in total
propositions
Magnify attractiveness and stickiness of your value chains
Concentrate on specific sales and service portfolios to build
integrated member benefits
Capture Increased Member Cashflow

12. SIX PACK STRATEGY SOLUTION
An integrated deposit/cashflow series of segment
specific values to quench your liquidity thirst
WESI
“Burp”
Stop the Commoditization Cancer

13. AGM & DEVELOPMENT CONFERENCE
CUCU
AGM & DEVELOPMENT CONFERENCE
Deposit Generation & Retention Workshop
Thank You
Pat Palmer