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Be sure to align with the CU's overall goals
Growing the credit union in alignment with strategic goals entails careful planning and execution, say marketers who shared this assortment of useful approaches and considerations.
Follow the Numbers
Over the last three years, the marketing team at $847 million/71,000-member Texas Trust Credit Union, Mansfield, Texas, has stepped up its reliance on metrics to measure the effectiveness both of its traditional and online campaigns, says SVP/Marketing/Business Development Amber Danford, a CUES member.
The marketing department gathers data and develops quarterly, monthly, even daily reports, and Danford meets weekly with AVPs to review the results and look for possible improvements. “We identify what to stop, start and continue—what worked, what didn’t, and what we might want to continue with minor tweaks,” she says. “Acting on metrics can mean the difference between a mediocre and a great effort. That’s become the way we do business.”
Toward that end, Texas Trust CU sets concrete goals for marketing and member service staff and tracks progress toward their attainment. For example:
- Business development has an annual goal of opening 920 active checking accounts, defined as having a regular direct deposit of at least $500 or 10 debit card swipes totaling at least $100 in the first 60 days after the account is opened.
- Front-line staff are expected to produce 312 qualified referrals for additional products, including insurance, mortgages, investments, auto loans, and business services each year.
- The marketing staff has an annual goal of hosting 200 on-site events to open accounts at local businesses, new and existing SEGs, area schools, etc.
On the digital front, the credit union has made a strong push to collect email addresses of members and prospective members and continues to work on improving the marketing efficacy of that low-cost channel. Of the 81,483 email connections it maintains, 41,164 are considered active—that is, the recipient opened at least one message in the last six months. The average open rate is 14 to 20 percent, and the credit union is working to increase its click-throughs from the current 0.l percent to 2 or 3 percent, Danford says.
Put Your Best Digital Foot Forward
As members increasingly equate level of service with the quality of online access, marketing consultant Mark Arnold suggests credit unions should look for ways to “break the rules and innovate,” especially in developing a digital and mobile lending strategy. Leading the pack with mobile lending and unique loan products would give marketing an attention-getting message, he says.
“The website is your credit union’s front porch,” he suggests. “Why spend $2 million developing branches and $10,000 on your website when the vast majority of members visit your website before they ever enter a branch? And more to the point, they may visit your website three or four times a day. Your website needs to be a full-fledged interactive channel.”
Focus on What Produces Results
VA Desert Pacific Federal Credit Union, Long Beach, Calif., has tripled loan production by training its front-line staff on cross-selling and reorganizing its loan department behind an experienced loan salesperson/interviewer. Before making these changes, “we tried a lot of marketing campaigns we thought we needed but that didn’t drive business,” says CUES member Juan Gamez, lending supervisor for the $59 million credit union serving 4,600 members. “We’d promote a gas card give-away, and when members would come in and apply for a loan, we’d give them the gas card. They’d say, ‘What’s this for?’”
The credit union also sponsored go-green promotions to finance hybrid vehicles, vacation giveaways, and other “gimmicky stuff” that came as a pleasant surprise to members “but didn’t drive them through the doors,” Gamez says.
Develop Your Sales Force
One way to support an effective sales and business development culture is to create an “elite” sales force by identifying your top salespeople and offering them intensive sales training, Arnold recommends. “I’d rather have one elite business development officer than three average ones. When you zero in on your best and brightest, 20 percent of your people will produce 80 percent of the results.”
Arnold worked with a Louisiana credit union that delivered “gold-level” training for its top sellers, picking them up in limos for off-site training and treating them to lunch and goody bags. The message was twofold: Sales matter, and if you want to receive this VIP treatment, you need to work on meeting and exceeding sales goals.
Connect With Business Members
$2.7 billion/100,000-member FirstOntario Credit Union has made a big splash in the Hamilton, Ontario, business community with its 1Awards competition. Offering $125,000 in cash and in-kind support, the program showcases local entrepreneurs who’ve been in business for at least 18 months and are looking for a financial boost to move to the next level.
Current participants in the campaign, which was inspired by the reality TV show “Shark Tank,” include a law firm, accountant, Web/app developer, advertising firm, and local newspaper. Past winners were a coffee shop, a company developing packaging for clinical trial studies, and a music therapy studio.
The 1Awards generate a positive buzz in the business community, as does the credit union’s strong relationship with the local chamber of commerce and “Hamilton Hive,” a group of local business professionals, says FirstOntario CU EVP/Marketing Mary De Sousa.
“We recently worked with the chamber to develop a series of seminars for small business owners, which are offered at no cost to our business members,” she says. “And we’re looking to expand our business services into other communities where we have branches as well.”
Learn to Speak Millennial
“I’m 42, so I know how to go to the credit union and deposit a check, but a lot of Millennials have never had that experience,” Danford says. “They like the convenience of paying with a debit card, and they want to be able to do everything on their mobile phones.”
Beyond differing experiences and expectations for managing their personal finances, members in their 20s and 30s think differently about relationships, and credit union marketers need to understand that to communicate effectively, Danford adds. “Millennials have a wider definition of family—a broader-based meaning of that relationship. They talk about their ‘college families’ and their ‘team families.’ Those connections matter to them.”
Aim for Steady Gains
Marketing is a perpetual work in progress, bringing together all components of service delivery, member interactions, and community outreach, suggests CUES member Paul McAfee, CCE, VP/service at $360 million/12,000-member North Peace Savings & Credit Union. “I’m a firm believer that every program deserves a debriefing, review and adjustments, if need be. We look at timing and training, and we’re on the lookout for possible breakdowns. Continual refining—that’s what marketing is all about.”
A long-time contributor to Credit Union Management, Karen Bankston writes about credit unions, membership growth, marketing, operations and technology. She is the proprietor of Precision Prose, Stoughton, Wis.
