How Can US Credit Unions Recruit Younger Members?

Most senior US credit union members would agree that one of the biggest and most pressing strategic tasks in the future will be to recruit new/younger members, as the existing credit union member base is older with a preference for an increasingly outdated business model: doing business in brick-and-mortar branch offices.

US credit unions face several challenges when recruiting younger members, including meeting their digital expectations, limited brand awareness, competitive pressures from banks and the fintech sector, marketing limitations, and generational disconnects.

Younger people might perceive credit unions as outdated or less technologically advanced in the financial services sector compared with big banks, which often market themselves as being at the forefront of digital innovation.

Overcoming these challenges requires strategic investments in technology, targeted marketing efforts, and a deeper understanding of the financial needs and values of younger consumers. By addressing these areas, credit unions can better position themselves to attract and retain the next generation of members.

Consider the following best-practice business and marketing strategies:

Develop Mobile and Digital Banking Solutions

Adopt a Mobile-First Approach: Invest in a user-friendly mobile app with features that appeal to tech-savvy younger members. This should include functionalities like mobile check deposits, peer-to-peer payments, budgeting tools, and real-time text notifications.

Digital Wallet Integration: Ensure that the credit union’s services are compatible with popular digital wallets like Apple Pay, Google Wallet, Pay Pal, Venmo, and Zelle. This is essential for younger members who prefer digital monetary transactions (and rarely, if ever, carry cash).

Virtual Branch Services: Offer virtual customer service options, such as video banking, live chat, and AI-powered chatbots, to make banking more accessible and convenient for members who may not visit physical branches frequently.

Utilize Digital Marketing and Social Media to Build Brand Awareness

Targeted Social Media Campaigns: Utilize platforms like Instagram, Facebook, TikTok, and LinkedIn to create targeted brand campaigns that appeal to younger demographics. Build brand awareness of your credit union by focusing on the unique benefits of membership – such as lower fees, community involvement, and a more personalized service versus banks.

Content Marketing: Develop and share educational content that addresses common financial challenges younger people face, such as student loans, first-time home buying, and building their credit scores. Use blogs, videos, infographics, and podcasts to make the content engaging and shareable.

Influencer Partnerships: Collaborate with micro-influencers or community leaders who resonate with younger audiences. These partnerships can help build trust and credibility for the credit union among potential members.

Use Data to Understand and Meet the Needs of Younger Consumers

Behavioral Segmentation: Analyze data on online behaviors, such as website visits, social media engagement, and app usage. Tailor marketing messages to specific behaviors, such as promoting student loans to recent college graduates or first-time homebuyer programs to young professionals.

Demographic Segmentation: Use data analytics to segment potential members by age, income, occupation, education level, and lifestyle. Focus on younger demographics, such as Millennials and Generation Z, by identifying their specific financial needs and preferences.

Personalized Email Marketing: Leverage data to send personalized emails based on the recipient’s stage of life or financial needs. For instance, send targeted emails about savings accounts with high interest rates to young professionals or offer student loan refinancing options to recent graduates.

Data-Driven Content Creation: Analyze search data, social media trends, and financial behavior insights to create content that addresses the specific concerns and interests of younger members. This could include blog posts, video tutorials and infographics on anything from student loan management to budgeting and improving credit scores.

Focus on Financial Education and Wellness Programs

Workshops and Webinars: Offer free financial education workshops and webinars on topics relevant to younger members, such as budgeting, saving, investing, and financial planning. Promote these events through email marketing and social media.

Financial Wellness Resources: Provide easy access to financial wellness tools and resources, such as mortgage calculators, budgeting apps, and personalized financial advice. Position the credit union as a trusted partner in members’ financial journeys.

Measuring the Effectiveness of Marketing

It’s important to measure the effectiveness of the marketing strategies employed to recruit new members, to help optimize the return on investment and make them more efficient and effective. Consider the following key performance indicators (KPIs) for marketing efforts:

Membership Growth Metrics

New Member Sign-Ups: Track the number of new members joining the credit union over a specific period as a direct result of marketing campaigns.

Demographic Analysis: Use data analytics to break down new member sign-ups by age, location, and other relevant demographics. This will help determine if the marketing efforts are attracting the intended younger audience.

Mobile App Usage

App Downloads and Registrations: Track the number of mobile app downloads and registrations by younger users following marketing campaigns. An increase in app adoption indicates that the digital strategy is resonating with the target audience.

In-App Engagement: Monitor how frequently younger members use the app’s features, such as mobile check deposits, transfers, P2P payments and account management. High engagement suggests that the app meets their needs and expectations.

Engagement Metrics

Traffic Analysis: Monitor website traffic to see if there’s an increase in visits from younger users following marketing campaigns. Use tools like Google Analytics to assess the demographic breakdown of website visitors.

Conversion Rate: Measure the percentage of younger visitors who complete desired actions, such as signing up for a new account, downloading an app, or requesting more information.

Social Media Engagement: Track the engagement levels on social media posts aimed at younger members. High engagement rates indicate that the content resonates with the target audience.

Digital Campaign Performance

Click-Through Rate (CTR): For digital ads and email campaigns, measure the CTR to determine how effective the campaigns are at generating interest among younger prospects.

Cost Per Acquisition (CPA): Calculate the cost of acquiring a new younger member through marketing efforts. A lower CPA indicates a more efficient use of marketing funds.

Lead Generation: Track the number of leads generated through online forms, landing pages, and other digital touchpoints. Assess how many of these leads convert into actual members.

Brand Awareness and Perception

Brand Surveys: Conduct surveys before and after marketing campaigns to measure changes in brand awareness and perception among younger audiences. Ask questions about brand recognition, perceived value, and likelihood to join.

Net Promoter Score (NPS): Use NPS surveys to gauge the likelihood of younger members recommending the credit union to their peers. A higher NPS among younger members suggests effective engagement and satisfaction.

Referral Program Performance

Referral Sign-Ups: Measure the number of new younger members joining through referral programs. Track the effectiveness of incentives offered for referrals and adjust as needed to maximize participation.

Referral Source Tracking: Analyze which referral channels (e.g. social media, word of mouth, email campaigns) are most effective in attracting younger members.

Where Should You Start?

Consider the following initiatives as low-hanging fruit for recruiting younger members:

1. Targeted Social Media Campaigns

• Ease of Execution: Social media platforms like Instagram, Facebook, and LinkedIn offer user-friendly tools for creating and managing targeted ad campaigns. Credit unions can easily set up campaigns that appeal to younger demographics, emphasizing their unique benefits.
• Impact: Social media campaigns can significantly increase brand awareness among younger audiences and drive traffic to the credit union’s digital channels.

2. Content Marketing

• Ease of Execution: Creating educational content such as blog posts, videos, and infographics that address the financial challenges of younger members is relatively easy and can be distributed across existing digital channels.
• Impact: Content marketing helps position the credit union as a trusted financial partner and attracts younger members seeking credible financial guidance.

3. Workshops and Webinars

• Ease of Execution: Offering virtual financial education workshops and webinars is cost-effective and easy to organize using online platforms like Zoom or Microsoft Teams.
• Impact: These educational sessions not only provide value to existing members but also attract new, younger members who are looking for financial advice and resources on topics like setting budgets or financing their first home purchase.

How to Do It

It’s clear that effectively recruiting new, younger credit union members will be at the top of the list of strategic issues facing most credit unions. But the potential business and marketing initiatives mentioned above may seem daunting and unaffordable. The key thing is to begin taking proactive steps to recruit younger members. If you find your credit union is constrained in manpower and marketing expertise, consider working with an outside partner like Copylab.

Get in touch today to find out more.