RANCHO CUCAMONGA, Calif.-Despite all the potential new members in play courtesy of Bank Transfer Day, the growth focus in 2012 should be on getting more from existing members.
While acknowledging that attracting new members is certainly on every credit union's growth radar, Eric Porter, EVP of business development and marketing for CO-OP Financial Services, pointed out the cost of courting new members has risen alongside the increased cost of advertising and direct mail.
"Attracting new business is up to 10 times more expensive than getting increased revenue from existing members," Porter said. "So seeking deeper relationships is key, because money is in motion and consumers are questioning the principles and practices of banks."
Many of the credit union's existing members should be looking now to bring over additional relationships, said Porter, which is why CUs should seek organic growth through sticky products like checking, bill pay, online banking, rewards programs, and debit. "Durbin has given credit unions an advantage. It is not the doom and gloom that many predicted."
Porter recommended that credit unions offer a package of services that not only drive deeper relationships but offer members the convenience of choosing how they want to interact with the credit union, such as the call center, online, mobile, or in-branch.
"It's about improving the member experience," Porter explained. "Focus on what members want to build. Create loyalty. Don't make them settle, give them access, connection, and convenience and they will love it. Turn members into advocates."
What will also help attract new members and keep existing ones, asserted Porter, is CO-OP's recent merger with Financial Service Centers Cooperative. "We now provide 4,400 physical shared branch locations and another 2,200 kiosk locations at 7-Eleven stores," said Porter. "It all comes down to convenience."
