EL SEGUNDO, Calif. — Even though anti-bank sentiment has begun to fade, credit unions still have a plethora of marketing opportunities to capture new business and deepen existing relationships with members in 2014.
That's the word from a host of credit union marketing and business development experts who told Credit Union Journal that if you liked the marketing landscape in 2013 — look for more of the same in the next year.
"I still think consumer confidence in credit unions is really, really strong, and I still think there's a certain positive hangover form things like Bank Transfer Day," said Kathryn Davis, SVP at Xceed Financial Credit Union and vice chair of the CUNA Marketing and Business Development Council.
Davis added that the "positive hangover" not only creates opportunities for credit unions to obtain new members — in particular those who are savvy when it comes to fees and rates — but also to deepen relationships with existing members.
"Not only deepening the relationship with an existing member, but going deeper within that member's network — their family. One thing CUs should be really concerned about is that we all have an aging membership. If we don't start to grab relationships with these members' kids, the wealth will just transfer; we won't even have an opportunity to grab some of the business."
Whatever market credit unions go after in 2014, the messaging they use will be crucial. Paul J. Lucas, a marketing consultant who has worked with credit unions nationwide, noted that messaging needs to be three things: simple, clear, and convenient.
"What credit unions have got to get away from is the cute and clever stuff," he said. "Just kill it. You've got to be simple, clear and convenient."
Lucas pointed out that there are a plethora of businesses that credit unions can look to for how to do that.
"Be Nordstrom, be JC Penney," he said. "Macy's does a great job with constant, constant direct mail — coupons, showing value. I think in your messaging you really have to show the value and benefits of why people need to [borrow from you] without going into specifics."
Must-Have Skills
Sean McDonald, director of business development at Mid-State FCU in Carteret, N.J., and a member of the executive committee for the CUNA Marketing and Business Development Council, pointed out that while CUs are very good at collecting data, they're not always so good at analyzing it.
"Credit unions marketers and business developers have to take some initiatives — on their own or with credit union support — to take education courses on data analytics and statistics," he said. "I'm not saying people have to go back to college and get a master's degree in stats. It's not easy, but you have to at least have a cursory understanding of how to do it. And the ones that have the resources will be using MCIF more and looking to vendors more."
McDonald offered a fairly simple step for CUs to ensure their marketers and business development professionals have those skills.
"You need to put something in a job description that you want folks to at least have a basic understanding of data analytics and statistics," he said, adding that many CUs are going to end up spending money on vendors to provide those services because they don't have the expertise on their own staff. "They might be great marketers, but for whatever reason they don't have the analytics piece of it as a skill-set."
Sticking with business development, Paul J. Lucas noted the importance of having an engaged membership, rather than just adding new members for the sake of growth.
"You can bring in 100 members, and that might sound good for a small credit union in a month, but if you don't get them to get checking and e-statements and home banking and mobile direct deposit and loans, it doesn't mean anything," Lucas said. "You have to really concentrate on profitable or engaged members; people who will do business with you."
Forecasting The Coming Year
Many said that credit unions shouldn't expect to see major changes in the new year, but rather a continuation of many of the same trends the movement saw in 2013.
"There won't be a dramatic change," said Amy Herbig, CEO at the BA Group, a Northfield, Minn.-based marketing firm that works with credit unions.
"I would've said from 2012 to 2013 there seemed to be a different energy and different growth, but I think 2013 has been the settling year for this next stage of the credit union industry" following the shocks of 2008 to 2012," Herbig said.
Similarly, Xceed's Davis noted that one of the surprises of 2013 was a brighter outlook and increased consumer confidence. "I think for 2014 we'll definitely see a lot more of that, and I think we're on a slow rebuild headed in the right direction."
