ORLANDO, Fla. – You have to control what you can control, and for credit unions that’s one, critical thing.
In remarks aimed at challenging some of CUs’ most Sacred Cows during Credit Union Journal’s Grow Show here, Peter Duffy of Sandler O’Neil told his audience credit unions for the most part have yet to figure out how to get themselves into the minds of undecided consumers. The only solution: “We have to make more money and we need to take that money and pile it into marketing. We need ideas on how to boost earnings and competitiveness. Earnings’ key purpose is to provide the funds necessary to increase awareness of your culture, increase awareness of your value, distinguish and differentiate your CU from the crowd, maintain competitive value and service, maintain competitive compensation, so that you can increase household penetration and acquire new households.”
Separately, Duffy urged credit unions at Grow Show to quit measuring their individual growth according to peer group analysis, because what really matters is how the credit union is doing against competitors in its own market. “If year over year over year we have a five share, someone is ripping you off on marketing and advertising,” said Duffy. “Adding customers and increasing household penetration is where you should spend every nanosecond and dollar, because if you’re not, you’re hurting your member. We’ve been focused on loan-to-share, not market share.”
