What Gets Measured, Gets Done: The following article is one of six that, as part of Credit Union Journal's ongoing series on growth, takes a look at measurement metrics. The other articles can be found in the related links box on the right.
FAIRFAX, Va. — A "key" to effective marketing is having measurable goals the credit union tracks throughout a campaign, shares one national branding and marketing consultant who warns against waiting too long to gauge results.
"If you think you're going to have an effective campaign by meeting with your staff, introducing the campaign, telling everyone what they need to do, and then look at results three months later, you're kidding yourself," said consultant Paul Lucas.
Lucas said sound metrics start with a benchmark. For example, if the campaign drives auto loans, look at what the CU has done over the last two to three years, during the same quarter in terms of auto loans, and then determine a baseline.
"So you have what you normally do as a benchmark, then you have your campaign costs, and what you'd like to have in return from the marketing effort," said Lucas, who explained those numbers drive the monthly, weekly, and even daily vehicle loan targets.
Those daily metrics can be the most important, he said, because they indicate how well the credit union is progressing toward the overall campaign goals, and allows for adjustments if the CU falls behind. "At all times, the metrics tell you if you are effective and it's something that should be watched very closely," said Lucas.
The formula makes it simple to track performance and manage goals, especially for smaller credit unions. Lucas acknowledged larger credit unions will often use more sophisticated methods, such as leveraging MCIF databases.
Evaluating branding campaigns is "tougher," admitted Lucas, who pointed to the number of new members attracted and product and service penetration as two metrics to track branding impact. Membership and external surveys can assist, if the credit union has the money to afford those, suggested Lucas.
"I would look at product and service penetration first to gauge brand awareness," Lucas said. "Again, you need a baseline, and you would want to be equal with your peers, not only at your asset level, but more importantly, within your region. You really need to track product and service penetration during your branding campaigns and see how the number is moving. If it's not going up every quarter, and certainly yearly, then your marketing is not effective."
Finally, Lucas insisted that credit unions should not "give anything away," like a $50 gas card when members take a loan. Regardless of what metrics say about a program that includes giveaways, the credit union has wasted its money, insisted Lucas. "You are already one of the best deals in town in terms of rate and benefits. You just have to market that better."
