How Can US Credit Unions More Effectively Engage Current Members?

At the recent World Credit Union Conference (WCUC) event held in Boston, numerous speakers – including Elissa McCarter LaBorde, president and CEO of the World Council of Credit Unions – identified the need for US credit unions to better engage their current members and recruit younger members.

Consider how marketing strategies can achieve these goals and act as an enterprise-level strategic growth driver. Many of these initiatives are affordable and can be tested with relative ease. The major risk for many credit unions is doing nothing and then hoping for the best when building their business and maintaining their long-term viability.

Part 1: Marketing Strategies to Increase Engagement with Current Members

Personalized Communications

Segmented Email Campaigns: Use data to segment members based on their demographics, financial behaviors, and product usage. Send targeted emails that offer personalized advice, product recommendations, and exclusive offers that address their specific needs.

Customized Content: Create personalized content that focuses on individual member goals, such as saving for a home, planning for retirement, or managing debt. Use newsletters, blogs, and video content to share tips and insights directly relevant to members’ financial situations and challenges.

Direct Mail with a Personal Touch: For members who may prefer traditional communication methods, personalized direct mail is an effective way to make them feel valued. This could include personalized financial health reports or invitations to special events.

A highly efficient and effective way to deliver personalized communications is to employ a customer relationship management (CRM) platform. It automates the collection and analysis of customer data and aids in the development and delivery of customized marketing messages, helping to measure their impact.

Enhance the Member Experience

Loyalty Programs: Implement loyalty programs that reward members for continued engagement with the credit union, such as using multiple products, referring friends and family, or participating in community events. Rewards can include interest-rate discounts, fee waivers, premium returns on deposit products or cashback offers.

Member-Only Events and Webinars: Host exclusive events, webinars or workshops on relevant financial topics, such as investment strategies, retirement planning, or credit management. This not only educates members but also fosters a sense of community and belonging.

Seamless Digital Experience: Ensure that the credit union’s digital platforms, such as online banking and mobile apps, are user-friendly, feature/functionality-rich, and regularly updated based on member feedback. Promote new digital tools and features through marketing campaigns to encourage adoption.

Proactive Member Support

Surveys and Feedback Loops: Regularly solicit feedback through online surveys and act on the insights gained. Show members that their opinions matter by communicating how their feedback has led to improvements in services or products.

Educational Content and Financial Wellness Programs

Financial Education Campaigns: Develop ongoing financial education campaigns that address common financial challenges. Offer resources like budgeting tools, debt management workshops, and investment education to help members improve their financial health.

Content Marketing: Create and distribute educational content through blogs, social media, and newsletters that help members make informed financial decisions. Highlight success stories of members who have benefited from the credit union’s services.

Social Media Engagement

Interactive Social Media Content: Use social media platforms to engage with members through polls, Q&A sessions, live videos, and community-building content. Encourage members to share their experiences and interact with the credit union online.

Member Spotlights: Feature members in social media posts or newsletters to celebrate their achievements or showcase how the credit union has helped them reach their financial goals. This personalizes the credit union’s brand and strengthens member connections.

Cross-Selling and Up-Selling

Targeted Offers: Analyze member data to identify opportunities for cross-selling and up-selling relevant products. For example, offer auto loan refinancing to members with existing car loans or suggest a retirement account to members approaching retirement age.

Bundled Services: Promote bundled services or product packages that offer additional value, such as a combination of checking accounts, credit cards, and savings accounts, with special benefits for bundled users.

Community Involvement and Corporate Social Responsibility

Community Events: Organize or sponsor community events that align with members’ values and interests, such as charity runs, environmental clean-ups, or educational fairs. Promote these events through marketing channels to encourage participation.

ESG Initiatives: Highlight the credit union’s commitment to environmental and social responsibility through campaigns that showcase community support initiatives, such as financial literacy programs, scholarships, recycling, carbon reduction actions or volunteer efforts.

Business Benefits of Better Member Engagement

Increased Member Loyalty

Higher Retention Rates: Engaged members are more likely to stay with the credit union, reducing churn and the costs associated with acquiring new members. Member loyalty leads to long-term relationships, which are essential for sustained growth, and are typically more profitable.

Advocacy and Word-of-Mouth Referrals: Loyal members are more likely to refer friends and family to the credit union, leading to organic growth. Satisfied members often become advocates who promote the credit union within their networks, enhancing brand reputation.

Cross-Selling and Up-Selling Opportunities

Increased Product Adoption: Engaged members are more likely to take advantage of additional products and services, such as loans, credit cards, and investment accounts. This increases the average revenue per member.

Improved Profitability: By cross-selling and up-selling to existing members, credit unions can boost profitability without the high costs associated with acquiring new members. Engaged members are more likely to use higher-margin products.

Stronger Community Ties and Brand Reputation

Enhanced Community Presence: By actively engaging members through community involvement and corporate social responsibility initiatives, credit unions can strengthen their presence and reputation within the community. This fosters goodwill and aligns the credit union’s brand with positive values.

Differentiation from Competitors: A strong focus on member engagement differentiates credit unions from traditional banks, which may not offer the same personalized service or community focus. This competitive advantage can attract more members in the long run.

Better Data for Decision Making

Informed Business Strategies: Regular engagement provides valuable data on member preferences, needs, and behaviors. This data can populate CRM platforms and, in turn, inform strategic decisions, product development and marketing campaigns, ensuring they align with member expectations.

Adaptive Services: Credit unions can use feedback and engagement metrics to quickly adapt services to meet evolving member needs, leading to higher satisfaction and loyalty.

Enhanced Member Experience and Satisfaction

Positive Member Experience: Engaged members who feel valued and supported are more likely to report higher satisfaction levels, leading to positive reviews, testimonials, and a higher Net Promoter Score (NPS).

Personalized Services: Tailoring services to member needs enhances their experience, making members feel that the credit union genuinely cares about their financial well-being.

Where Should You Start?

Consider the following initiatives as low-hanging fruit for increasing member engagement:

1. Segmented Email Campaigns

• Ease of Execution: If your credit union already has a basic CRM system in place, segmenting email lists by member demographics or behaviors is relatively straightforward. Personalized email campaigns can be automated and require minimal ongoing effort.
• Impact: Targeted emails can quickly increase member engagement by delivering relevant content and offers that resonate with individual members’ needs.

2. Direct Mail with a Personal Touch

• Ease of Execution: Personalizing direct mail, such as financial health reports or invitations to events, is a simple way to add value for members who prefer traditional communication methods. The effort can be scaled depending on resources.
• Impact: Direct mail with personalized touches can strengthen member loyalty by making members feel valued and recognized on an individual level.

3. Surveys and Feedback Loops

• Ease of Execution: Conducting online surveys to gather member feedback is a low-cost, high-impact initiative. Surveys can be easily distributed through email or your credit union’s website.
• Impact: Regularly collecting and acting on member feedback can lead to quick wins by improving services based on member input, thereby enhancing satisfaction and loyalty.

4. Social Media Engagement

• Ease of Execution: Engaging with members through social media platforms is cost-effective and can be managed with minimal resources. Posting interactive content, conducting Q&A sessions, and featuring member spotlights can be done regularly.
• Impact: Social media engagement helps build community, strengthens member connections, and increases the visibility of the credit union’s offerings among younger, digitally savvy members.

5. Targeted Cross-Selling Offers

• Ease of Execution: Analyzing existing member data to identify cross-selling opportunities can be quickly implemented, especially if the credit union already uses data analytics tools. Personalized product recommendations can be delivered via email or during in-branch interactions.
• Impact: Targeted cross-selling can drive additional product adoption and increase revenue per member, improving overall profitability with minimal additional cost.

These initiatives are practical and relatively easy to implement, offering quick wins that help credit unions enhance member engagement, loyalty and profitability.

How to Do It

It’s clear that enhanced member engagement is a good thing based on the many benefits mentioned above, but the list of potential business and marketing initiatives may seem daunting and unaffordable. The key thing to do first is to begin taking proactive steps to deepen the relationship with your current 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 with us today to find out more.