SAN DIEGO — Looking for some ideas to steal?
Two presenters at Credit Union Journal's Grow Show were offering them up. In remarks themed, "Left Coast, Right Coast, Eight Ideas You Can Steal The Most," Roy MacKinnon, VP with First Entertainment Credit Union in Hollywood, and Paul Lucas, president of the marketing and branding consultancy in Virginia that bears his name, shared successful growth tips both from their own work and that of others.
Among those ideas:
A rebranding at New Mexico-based Guadalupe Credit Union, which abandoned a logo that "looked like a restaurant," noted Lucas, in favor of a new logo and a tagline that reflects what he said is the heart of GCU" "More than banking, we're family."It's working. Lucas noted that in the first year since the rebranding, the CU has seen 18.94% marketshare growth, 12.16% loan growth. One secret, said Lucas, is the " narrow brand niche with a focus on the Hispanic working families of Santa Fe." That included a new all Hispanic branch, bilingual staff, and a focus on family service.
"Your brand is everything," continued Lucas. "Most credit union brands are in the past. Good credit union brands have a foot in the future and in the past."
- Focus on a single product for a length of time. Lucas pointed to a Platinum Visa campaign from FDIC FCU in Washington, D.C., which for 90 days did nothing but push platinum cards. In 60 days FDIC brought in 147 members for total balances of $1.8 million. Other tips: "Make it fun," and with complicated products, "make it easy or craft it so it looks easy."
- Be willing to take risks. First Entertainment did just that with its "Pimp Your Auto Loan" campaign. First Entertainment, which includes in its FOM the MTV network, which was airing "Pimp Your Ride," rolled out its version, which included direct mail, POS, inserts, web online, print, on-hold messages, and more. The results: volume grew 55% to $17.1 million. The ROI: 2,959%. As an aside, MacKinnon added, there were some members upset over the word "pimp," but he said for anyone under 30 the word has different connotations than those it does for those older than 30. "Find your own outrageousness and don't be afraid," said MacKinnon.
Direct mail still works-often very well. MacKinnon noted that First Entertainment's humorous "Worst Movies Ever Made" campaign used postcards that targeted 20,000 members with FICOS of 625/890 and $500 or less on deposit. Goal was 15% above budgeted share growth. Results: 64% over bugeted growth, 41% over goal."I'm a big, big proponent that humor sells," said MacKinnon.
Added Lucas, "People don't like direct mail because it's expensive. It's expensive because it works. You have to be consistent and you can't stop.
Lucas noted research shows direct mail, e-mail with outbound calls attached result in six times ROI, said Lucas.
- Get retail oriented, and know to whom you're marketing. "If you're using pictures of people, get rid of them," said Lucas. "Don't put a silver haired couple on your IRA brochure. It's too late for them. Put someone young on there. And never use rate unless you're the marketing leader. If you teach your members to look to rate, you will lose in the long run."
- Emphasizing that credit unions should not just assume growth is limited to big asset-size operations serving glitzy FOMs, such as First Entertainment's Hollywood members, MacKinnon cited the example of PCM Employees CU in Green Bay, Wis., which has a $64,000 marketing budget and primarily serves a single FOM. "They position themselves as a private club that not everyone can join, and have a strong anti-fee policy, including $3 courtesy pay," noted MacKinnon. "They have grown 138% in 2000s."
