NEW YORK – The vast majority of credit unions with a social media program, 94%, say they have a Facebook page, but a growing number are planning a Twitter campaign, according to a new study issued by Financial Brand, an online marketing publication for credit unions and banks.
Almost every credit union of 160 surveyed says they are using Facebook today, but one in 14 of those says they’ll give it up. Two thirds plan to use Twitter in the coming year. Everyone, however, continues to struggle with social media ROI.
The majority of credit unions responding to the survey have plans to develop or enhance their social media strategies for 2013. Here’s how credit union marketing professionals indicated they planned to use social media channels in the coming year:
The top barriers to using social media identified by credit unions in the survey were measuring return on investment (ROI) and a lack of time and resources to implement social media plans.
Currently, credit unions are using crude social media metrics, with 75% saying they track the number of Facebook fans they have. 59% measure the number of mentions or comments, and 55% track the number of posts on Facebook. No one, it seems, is tracking actual ROI — as in “how does social media impact the bottom line?”
“The challenge is that while these are quantifiable metrics, they do not measure member engagement, changes in awareness, or increases in sales,” said Patrick McElhenie, sales planner at CUNA Mutual Group, who presented the survey’s findings to attendees of the 2012 CUNA Lending Council Conference last week.
“Survey findings show credit unions using social media for more than three years are more adept at integrating it into their overall marketing strategy and are achieving better levels of member engagement,” added McElhenie.
The majority of credit unions surveyed are primarily using social media to educate, build awareness and promote events, the survey found.
“Social media can supplement traditional marketing and help credit unions educate and promote, but its real strength is in the ability to engage members,” noted McElhenie.
However, as credit unions gain more experience with social media, their objectives are expanding beyond using it simply as a one-way marketing and communications tool. Beginners focus on education, awareness and promotion while more advanced users also focus on attracting new members, providing customer service, supporting sales and providing consumer reviews, according to McElhenie.
Those credit unions who adopted social channels earlier than others use more than just Facebook. Credit unions who have been using social media for more than three years, are significantly more likely to use Twitter and YouTube than those who have been using social media for less than three years.
They survey was conducted interviewing 160 members of CUNA’s Lending- and Marketing Councils in August.
