LINDEN, N.J.-Produced correctly, the credit union newsletter may be the most cost-effective advertising for at least one small CU.
E53 Credit Union believes that's true, and uses its newsletter as its primary advertising medium, heavily promoting products and services in the publication. The $80-million credit union spends $12,000 annually on the newsletter that's loaded with product information. Marketing Manager Cynthia Weaver says the investment is well worth it if it is designed and distributed correctly. Others also agree: at NAFCU's Strategic Growth Conference, E53 was honored for having the "Best Member Newsletter" for credit unions with assets under $150-million.
"Our opening rate for the newsletter is great," Weaver said, based on surveys and responses to promotions. "We believe about 80% of our members look at it."
Called "People Helping People," the four-color piece is mailed monthly, which Weaver says is necessary for members to expect it and look for it. Members tend to scan the newsletter for offers, much like they do coupon flyers they receive in their mailbox. "Members know our newsletter is loaded with promotions and specials," said Weaver, who noted that standard CU news is mixed in, as well.
Besides the ads, Weaver said the newsletter has to be timely-meaning the offers must match what is happening with members' financial lives, such as an auto loan promotion in the spring, and has to be tied to current events. "Each newsletter has a theme," said Weaver, who plans each issue herself. "For April it's baseball. It just makes the piece current."
Results have been very good, according to Weaver, who said a recent auto loan promotion attracted $2.5 million in 30 days, and a membership drive reeled in 45 new members in one month.
"People Helping People" is mailed to 10,000 members in their monthly statements, which carry a teaser for the newsletter on the outside of statement envelope. The newsletter is also distributed to SEGs and in branches. Once each quarter, the two-page publication expands to four pages.
Other elements that make the newsletter effective: "I believe in a lot of pictures to attract the eye and big headlines that get the point across," Weaver explained. "It helps those who scan. The copy I use is just enough so people understand the offer and are enticed, and then they go to the website for more details."
