WASHINGTON-In 2010, credit unions will have to do much more than rely on consumers' flight to safety to grow membership and drive deeper relationships.
The new year is about providing members with an understanding of their financial services alternatives, how products can solve their money problems, and what financial risks lie ahead.
That's among the findings of the Corporate Executive Board here, which has released a 15-page study titled "Capturing the Post-Crisis Sales Opportunity." The study emphasizes the increasing burden placed on front-line staff to effectively sell to members. "New consumer realities" are transforming the nature of sales interactions, the report says, insisting that it's time to "raise the bar at the front line."
The problems with the economy have changed the consumer mindset, the study suggests, leading individuals to consider that their financial problems are more important today, are harder to solve, and are their own responsibility to remedy. That shift in thinking requires front-line staff to help consumers understand their own situations, delineate the choices members must make, and clarify the options-including pros and cons of each potential solution.
Mark Meyer, CEO of the Filene Research Institute in Madison, Wis., agrees that growth will require a more sophisticated approach moving forward, but stressed that it involves more than just the front line. "Americans are hurting. But what they need may vary by geography, their demographic, age, race, and income," said Meyer. "This requires segmentation research within your membership. You can also look at behaviors, and study what is happening in members' accounts. Moving forward in 2010 is about paying attention to what the member wants.
"As we've tightened our belts, more people are entertaining at home than eating out. You are much more networked with your friends and family," he continued. "The only area of retail that has grown during this recession is direct selling-at-home parties like Amway and Pampered Chef. USA Today recently shared data on this."
Meyer pointed to Filene's MoneyWorks project-a concept where members hold at-home parties about CU products and services. "Now is the time to have these sorts of conversations with your members. Turn your credit union's growth opportunity over to them. For the first time in many years, people are willing to talk about their most sensitive part of their anatomy-their wallet."
