MADISON, Wis.-Mark Meyer believes there is a big question facing credit unions when it comes to growth this year.
"How do you translate the fact that people love their credit union into more business?" asked the executive director of the Filene Research Institute. "People love their credit unions and they won't say that about their other financials. How do you start to monetize that relationship with members? That's the big question."
An Open Window
That scenario has presented a window of opportunity that Meyer hopes will remain open. "I think it will, but timing is of the essence. Credit unions have to become more aggressive with marketing. As we know, in any economic downturn, marketing budgets are one of the first line items cut. Thrift is the new black at credit unions."
That conservative thinking, according to Meyer, made 2009 a year of "lost opportunity" as many credit unions were inwardly focused on issues facing the credit union rather than outwardly on the needs of members fighting the economy. "Credit unions were reacting to system issues due to the strains from the corporate system and NCUA assessment, and the regulatory changes."
But the effects could be more far reaching than just 2009, he suggested. Being overly conservative this year could also hurt credit unions long after 2010, said Meyer.
"You need to spend money researching your members and potential members about what their needs might be. I push that beyond market research to research and development. Historically, at the end of economic downturns, the next round of market winners are borne out of those who invested heavily in R&D."
A Lesson from the 1930s
Meyer said that companies that invested in research and development during the Great Depression, like Procter & Gamble, often had 40% of their sales coming from products less than four years old by the end of the 1930s.
