CLEARWATER, Fla.-Credit card use picked up during 2011, meaning it's imperative CUs begin ramping up credit card marketing now.
Bill Lehman, VP of portfolio consulting for CSCU, cautioned that if CUs do not begin increasing their credit card marketing and evaluating their card program to make sure the structure is right to move its card to top of wallet, a big growth opportunity in 2012 is going to be missed.
"We want credit unions to recognize that credit cards are starting to take off," said Lehman. "Consumers are beginning to use their credit cards a little more, moving away from the mentality of a year ago when people were almost 100% focused on saving. Things are slowly changing and we are starting to see an increase in credit card usage and balances. Credit unions need to react now so they can get on that wave rather than have the opportunity go through its peak before they are ready to go after it."
Besides committing to marketing the CU's credit card and developing messages that resonate with consumers, the CU should also do a broad analysis of its credit card program. Lehman said it's not hard to do.
"This is the most important step and I think credit unions can learn a lot by speaking with their employees and volunteers," he told Credit Union Journal. "Ask your team if they are carrying and using your credit card. If your board members, for example, scratch their head and say, 'Wait a second, I am not using the credit union's card,' ask them why. It might be because another lender is giving cash back and you are not. You can begin to tweak your program just by talking to people inside the credit union."
