MADISON, Wis. — What should credit unions be doing to leverage the recent uptick in membership growth?
"If I were managing a credit union, I would invest in deepening the relationship with my existing members, rather than chasing after new members," CUNA Mutual Group Economist Dave Colby suggested, adding that there are huge opportunities for credit unions in refinancing everything from plasma televisions and autos, where point of purchase credit is such a big temptation, to all those adjustable rate mortgages. "Members are strongly preferring fixed rates right now. And if rates plunge for some unknown reason, it doesn't that much to refinance anymore, so members aren't as reticent to make the move."
NAFCU Economist Tun Wai suggested marketing to opposite ends of the demographic spectrum, noting the giant shift of baby boomers toward retirement and the wealth of opportunity in tailoring products to them-but also pointing out the importance of promoting credit union membership to the younger high-tech, high-touch generations, as well.
Both warned against recruiting new members just for the sake of bringing in new members. "You need to pay attention to the quality of the members you are attracting," Wai offered. "You want a member who will be around for a very long time and who will use multiple services."
CUNA Economist Mike Schenk counseled credit unions to "toot their own horns" more. "We have a lot of credit unions running around doing all sorts of good things, and they're doing those things because it's part of the credit union fiber, they're doing them because that's part of the expectation," he said, suggesting that this isn't part of the banker fiber. "So, if you are going to do these good things, measure the actual value you bring to your members, and then tell the world about it."
Do that, and your members will tell the world about it, too, Colby said. "If I were managing a credit union, I'd focus my efforts on making them so darn happy that they wouldn't dream of leaving, and they tell all their friends and family to join."
