CARTERET, N.J.-Expect to see credit union marketing budgets increase in the second half of 2012.
"By and large, what we're seeing is credit unions loosen up a bit," said Sean McDonald, director of business development at Mid-State FCU here and chairman of the CUNA Marketing & Business Development Council. "Obviously they still have to be careful and prudent with what they're doing, but I think credit unions are realizing that if they want to continue to grow, they have to market their services. The surest way to not achieve any growth is to cut your marketing."
Many CU marketers have lamented that the marketing budget is always the first to get cut when times get tough, and McDonald noted that those budgets often aren't always the first to be restored, either, but they are being reinstated on some level. "I wish I could say everything would go back to 100%, but I just don't think that's realistic."
McDonald agreed that last year's Bank Transfer Day event brought thousands of new members to CUs nationwide without the help of CU marketers, but said that marketing will be crucial in the months ahead as CUs look to capitalize on that influx of new members.
Marketing around loans-particularly auto, personal and lines of credit-will remain the focus for the rest of the year, in part because credit unions "are really good" at making those types of loans and those are products consumers want right now. Beyond that, McDonald stressed the importance of keeping messaging simple.
The Simple Message
"At my credit union, we're being blunt with people and saying, 'We have money to lend and we will lend it to you,'" said McDonald. "I think what more CUs need to do is just simplify the message."
While a national branding campaign doesn't appear to be anywhere on the horizon, McDonald said that successful campaigns in places like Michigan, Connecticut and Texas could be a sign of things to come. "I think, frankly, people are tired of waiting (for a national campaign) and have decided to stop waiting and see what they can do on a local or regional level, and some of those leagues have seen some great successes."
McDonald also advised against putting too many resources into finding new members, and said CUs are better served right now by increasing existing walletshare. "That's a smart way to do it; it's less expensive to cultivate relationships with people you've already got in the door. Credit unions can't stop acquiring new members...but if they want to save some money on the marketing costs, then start with what you have."
