KANSAS CITY, Mo.-There are four words that kill growth at any credit union: Always, Never, Everybody and Nobody.
That is the message from Jason Boles, CEO of marketing consultancy Fans Created, based here. "Drop those four words and clear the mindset for marketing," he said. "Other growth killers are having a negative mindset, being too conservative, having dysfunction on the team and ineffective leadership."
Boles said one negative within credit unions is understanding the word "fear" almost too well. He stressed the importance of board members and management realizing a credit union is a business and must be aggressive on behalf of its member-owners.
"Successful businesses grow; they actively seek out opportunities," he asserted. "Growth brings value to members, along with a sustainable future."
The dangers of not growing are clear, Boles said. These include employees and members becoming fearful. A self-fulfilling negative spiral is created in which doors are closed and jobs are lost.
Many Ways To Grow
There are a number of ways for CUs to grow, Boles pointed out. The "steroid" method, or fast growth, typically involves mergers or programs designed to bring in large numbers of new members. An "organic" method of slow growth focuses on those already in the fold.
"Sell more to your existing members," Boles advised. "Organic growth is more stable and controlled. Credit unions don't want to shock their members too much with rapid changes. Keep things sustainable."
For example, Boles suggested many credit union members do not realize their CU offers a credit card because the credit union fails to market cards. He said this is symptomatic of trying to hard to be "nice."
"Even credit unions need people to buy their products and use their services," he said. "Make sure your members are using your credit card and are getting their loans from you."
Recent bank missteps, including Bank of America's now-legendary $5-per-month debit fee, have given CUs an opportunity, but Boles said it is important for credit unions to exceed consumer expectations.
"There has to be a reason for members to want to do business with a credit union, and to continue to do business with a credit union," he declared. "There is no starting and stopping-if a credit union raises expectations and wows people, it must continue to do so forever."
Attention, Fans
Because many consumers have fewer dollars to spend these days, Boles said they do so at companies they feel "aligned" with. Therefore, he continued, CUs must create "fans" and "marketing agents."
"Everyone is a fan of certain businesses," he said. "People might even pay more for something if they get an experience. Fans are more forgiving when something goes wrong, and when fans become marketing agents, they want to spread the word."
CUs need to identify their main competition and know the primary point of differentiation: price leader? Product leader? Or service?
"No business can be good at all three. Pick one and do it better than the competition."
