Credit Union Geek

Marketing, Strategy, and The Force by Joe Winn

Tag: members (page 1 of 3)

Different Credit Unions For Different Members

“Our members are different” might actually be true.

However, it’s for different reasons than cited. Most people react similarly to good marketing and smooth user interface design. They may not recognize why, but there’s a reason Google looks nearly the same as it did a decade ago.

However, individual credit unions may have a focus which makes them a better choice (pun intended) for certain members. While one member may be looking for the lowest credit card interest rates, another wants the highest rewards. During a recent visit to a number of clients in the Philadelphia area, I encountered this variance. While we were talking about goals and strategy, one credit union waved off anything below “C” paper for auto lending. Though they would work with members on individual exceptions (mainly to “look beyond the number”), it wasn’t their focus. The next day, I visited a credit union who went well into the low 500s for auto loans. “Our D paper is most other CU’s F- paper!” they exclaimed. The risk management was designed to accommodate these loans and they reaped the benefits of higher interest rates. This credit union felt that it was important to serve members who would otherwise be stuck in “Buy Here, Pay Here” financing.

What type of credit union are you? Is adopting a public face with impressive main office architecture, driving CU-branded cars around town, and sponsoring events your “thing”? Or, do you operate with a more low-key approach, relying on your existing members to spread the word and passing on those marketing dollars in the form of lower rates or greater dividends?

I’ve been to a lot of credit unions in the past few months. From a roadside office to a mountain compound to a 1700s governor’s mansion, the variety is incredible. I’d wager the variety of members served was equally so.

Is there a “correct” balance? Yes, one which allows your credit union to serve your current and target members to their highest satisfaction. This may mean offering numerous options for every service (though the Paradox of Choice normally precludes it…for much more on the concept, continue here or my post), focusing on rewards programs (make it a game!), or presenting “credit building” solutions. It’s all about your members. And you’ll get it wrong. So you tweak your strategy, ask your membership (remember the note cards?), and get better in the future.

Isn’t that, in and of itself, a way of being different?

Image credit: https://sorryabouthatbud.files.wordpress.com/2012/09/mm-edited.jpg

Billions of Dollars for Data? You bet!

You may not have seen, but Microsoft just wrote a check few can imagine. In pursuit of a comprehensive business platform, they are acquiring LinkedIn for a staggering $26.2 billion. In cash.

It would be the largest acquisition in company history, far exceeding the $8.5 billion they paid for Skype. So what can a social media platform for job hunters, executives, general employees, and recruiters possibly have to offer for a software and services firm like Microsoft? I mean, they have Office. What else could they want?

Big Data. Hold on, let me rephrase that. #BigData. Because knowing the trends behind it helps to better understand the rationale. Remember that article CU Insight shared of mine about your members’ data? It’s truly big business, and whatever you aren’t doing, someone else is. Besides, it’s really about better serving your members, and using the information you already have is the best way forward.

I cannot stress enough the importance of embracing data to further your personalized offerings. And once again, you don’t have to be working with millions of people or data points. Just a few carefully-selected points helps you draw incredible conclusions. Sure, it will raise important conversations about member privacy. That’s a good thing. But you have to be doing it.

I’m here to help. Feel free to contact me here (the old-fashioned way) or on Twitter @JoeCUGeek. I promise your credit union can take substantive steps for less than $26B. Trust me, I’m a geek.

Image credit: http://www.aicpa.org/Advocacy/CPAAdvocate/PublishingImages/Data%20Tunnel.jpg

Happy ICU Day!

Today is International Credit Union Day.  First celebrated in 1960, it…oh, what am I doing?  You know all this already!  But were you aware CUNA has made available loads of resources to best embrace the spirit (and publicity) of the day?  Simply visit CUNA’s ICU Day site for sample social media posts, history, beautiful banners and quotes, along with links to charitable efforts and much more.  Below is a poster which sums it all up.

ICU Day Poster 2015 22x28

Of course, knowing you’re part of something greater can inspire an emotional connection.  Unlike baseball’s World Series, this International celebration really does span the whole planet.

Belize quote

Veteran credit union staff and members may remember when the first ICU Day was celebrated.  Talk to them to empower yourself and others with the true spirit of the effort.
Eisenhower quote

At the end of the day, you can bank anywhere.  Why should a person become a member of your credit union?  Sometimes, going back to your roots and looking to the past for inspiration can create a brighter future.  Happy International Credit Union Day!  I’ll be engaging with credit unions throughout the day on Twitter.  Join the conversation with #ICUDay or directly at @CUNA (their official account) and @JoeCUGeek (that’s me).

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