HADLEY, Mass.-It's not that UMassFive College FCU doesn't care to do much about member retention; it's just that it believes it has many things already working in its favor.
Indeed, UMassFive retains 95% of its members on an annual basis, crediting both a closed closed field of membership and great word-of-mouth advertising. But the biggest retention boost, according to Jon Reske, VP-marketing, is delivered by the competition.
"The banks are treating consumers so badly that they are our best advertising."
That latter factor should slow attrition for at least another year or two, Reske predicted. What will also keep the credit union posting strong net member growth, such as the 6.2% it posted in 2009, is members talking to prospective members. "We have learned that 85% of all of new members say they joined after hearing about us from their friends or family. That's important, because these types of referrals give us immediate credibility with new members."
The closed field of membership, Reske contended, assists as well. As its name implies, UMFCFCU serves five area colleges. "When you work around a lot of people who are credit union members, they naturally bring up your name more, maybe talk about their new car loan or a great CD rate. That keeps us out in front of our members."
Reske shared that the $295-million UMFCFCU also relies on its 90-day on-boarding program.
