Rising rates may add vitality to bank clubs.With interest rates widely anticipated to rise in the coming months, bank club managers said they expect to make an even greater contribution to their banks' success. Bank clubs build loyalty among valued customers, typically helping a bank to retain and attract deposits. Club directors from around the country met March 9-12 in Charleston, W.V., for the annual conference of Heritage Clubs International.."The economy is improving, and community banks are generally doing better this year than they did a few years ago," said Jan Ruhde, chair of the Heritage Clubs International Advisory Board. "Still, the environment is challenging. Low interest rates mean that it is easy for customers to park their money at the bank. With the economy perking up, however, there is talk that interest rates will rise, which will make deposit-gathering once again competitive. This will make our jobs all the more important.".Ruhde is director of the Millennium Club at the Iowa Falls State Bank in Iowa Falls.."In addition to attracting deposits, our job is to create networking or relationship-building opportunities for our colleagues at the bank with some of the best customers in town, that is, our club members. Wealth management services, trust services, and a host of other products are keys to bank profitability and our clubs provide the platform for the bank to reach more people with those products and services.".Heritage Clubs International was started in 1980 by First Citizens National Bank in Mason City, Iowa, and today has more than 200 member banks in 33 states. The organization hosts an annual meeting to promote networking and industry education..Several club directors presented during the educational sessions which filled the three-day agenda. Valerie Kelsey, director of the Premier Club at D.L. Evans Bank in Burley, Idaho, led a session on "managing change through acquisition." A club director, she said, needs to maintain good lines of communication with senior management so the value of the club is appreciated at the bank's highest levels. Furthermore, Kelsey urged club directors to consider taking on volunteer or charitable work in their communities. She said the more valuable a bank club becomes to a community, the harder it becomes to consider discontinuing a club. .Cindy Blaine, director of the Heritage Club at Farmers Savings Bank & Trust in Traer, Iowa, offered insight into the best ways to deal with competition. She said communication with the other providers of travel in a community is essential for avoiding duplication..Another session featured three club directors who shared their experience taking over a club after a long-time, well-known director retired. Julie Terwilleger, director of AmeriClub at American Trust & Savings Bank in Dubuque, Iowa; Amber Thomas, director of the Central Classic Club at Central Bank Illinois in Geneseo, and Sheila Smith, director of the Ambassador Club at Heartland Bank in Geneva, Neb., all addressed the group in a panel presentation..Randy Dean, a Michigan-based management consultant, and Ivan Muslin, a professor at Marshall University in Huntington, W.V., offered information on managing email and difficult customers, respectively. Dean said across the country, businesses lose some $650 billion in productivity every year due to work interruptions. Proper email management can go a long way toward reducing that loss, he said. Muslin said remaining calm is perhaps the most important tactic for dealing with a customer who is upset..In addition to the educational sessions, club directors took two mornings for scheduled meetings with several companies offering travel opportunities. A key component for most of the clubs is travel, with many of them planning several trips per year. "Preferred Tour Operators" — a select group of travel providers who have exclusive relationships with Heritage Clubs International — presented during the conference 30-minute-long "showcases" highlighting selected destinations for the coming year..Next year's meeting is set for mid-March at Honey Creek Resort near Moravia in southern Iowa.