HOLLYWOOD, Fla. - Why should a consumer want to do business with your credit union?
If you can’t answer that, according to one analyst, then all the strategic planning and product services menus in the world won’t matter to new markets.
Anthony Hall, general manager of CUNA Caribbean Insurance Society, a unit of CUNA Mutual, told the company’s Discovery Conference that to reach new markets a credit union must have a value proposition. Joining Hall was Luis Lopez, president of Cooperative Abraham Rosa in Puerto Rico.
“A value proposition is the unique value a business offers to its customers,” Hall said. “It’s why your customers will want to do business with you.”
Hall said that CUs need to be able to answer the question “Why should a member do business with you?”
“Offer values and services that will improve members’ lives,” he said.
Hall shared the challenges CUs in the Caribbean face; it’s a list familiar to U.S. credit unions: attracting new members, increasing relevance to existing members, development of a sales culture, fee for service vs. free service, product development, and changing legislation and regulations.
“One of the ways to satisfy members in the long run is to develop a sales culture,” Hall advised. “This takes commitment from management and rest of the employees. It’s about all of the departments in the credit union working together–everyone working on the same page.”
Hall added that compensation must be attached to it in order to increase motivation from the staff. “People need to be recognized for their efforts,” he said.
Lopez said that credit unions–or cooperatives–in Puerto Rico are also facing challenges, including an 11.6% unemployment rate.
“Cooperatives have the ability to grow. Banks do not rely on the philosophy of ‘people helping people.’ It’s important to have that member one-on-one relations,” he said.
Lopez stressed the importance of reaching out to Generation Y, in order to grow. More ways to do this, he said, include: creating promotions tailored to their needs and interests, and remembering that Gen Y members like entertainment and music.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
