WASHINGTON-It's no secret that over the past decade many credit unions have rapidly expanded their fields of membership, and continue to look to do so.
But new analysis shows the result has been rapidly declining penetration rates among those expanded FOM. Callahan & Associates reported that more than 1,000 credit unions report at least a 900% increase in their potential membership base since June of 1999.
"The core idea behind these expansions was to grow the membership base of the credit union - allowing more consumers to benefit from the products and services offered," said Callahan's in its analysis. "But in most cases, that idea has not been realized."
The chart shows that membership has remained relatively flat compared with sharp FOM growth and credit union'
Callahan's is recommending three strategies to reverse the trend without spending a fortune on marketing. Those strategies are:
• Use your existing resources more efficiently. "From frontline staff to board members, everyone at your credit union has connections to the local community," said Callahan's. "Creating a culture of community involvement and empowering staff and volunteers to go forth and spread your CU's message can be a powerful (and inexpensive) tool."
• Find your niche and focus on it. "It is easy to become distracted from your core target as the potential membership base grows dramatically," the company said. "Don't lose sight of who your ideal member is and if you are not sure, it's time to re-define your CU's unique selling propositions and ID consumer types most likely to relate to them."
• Partner, partner, partner. "Even as FOMs expand, leveraging the relationships you've built with existing SEGs or forming relationships with new employer or community groups can be an excellent, and cost-effective, way to drive new membership growth overall market penetration percentage is on a steep decline."
