Originally published on CUInsight.com
Why would someone want to join your credit union? Or keep their relationship over switching to a seamless app-based fintech (or snazzy big bank) platform?
It’s easy to talk about the mission, how members are the owners, and that the institution is not-for-profit. But these tell people nothing useful, nor do they give them a tangible reason to bank there. People think they’re making decisions rationally, but they’re really acting on emotion.
Between my business partner (who’s also my dad) and myself, we’ve dedicated over half a century to providing for credit unions. I don’t share that for accolades (applaud if you’d like), just so you can understand the perspective from which I approach this topic.
Most credit union marketing goes in one of two directions:
- Explains what the credit union is, making the assumption this is sufficient to convince someone to want to bank there
- Shares what your institution offers, and sometimes even how you do so
The first has no direct bearing on a person’s financial life (yes, I get that it’s what enables lower fees and whatnot, but that’s all abstract and intangible to your target audience). The second is what marketers call “features and benefits”.
There’s no emotional connection to either. Both assume a rational decision-making process, which we know now doesn’t exist.
“Hold up, Joe! We’re a credit union, and our mission is always about the why. We strive to help people create stronger financial lives.” I hear you, truly. But read that again. Where is the emotion focused? It’s not to the individual you’re trying to attract, but rather a “big picture” that’s hard to pin down.
Dollars and Sense
Think of fast food and restaurant commercials. Do they spend their limited time talking about the mission of affordably satiating everyone’s hunger? No, they feature macro shots of their food items, make you hungry, and probably end with a “by the way, check out all you get for just this much money!”.
Bonus points for implying you’ll have a better social life if you choose to eat there.
So how can your credit union use this successful strategy? Focus on your members’ stories! (Chime does this ridiculously well with buyer personas.)
Our partnership with protection product providers as well as being credit union members ourselves gives us access to some compelling stories…and by stories, I mean, “big dollar numbers that will catch people’s attention”.
Regularly, I learn about paid GAP claims of $8k, $10k, even $14,000, and more! For the average American, that kind of avoided out-of-pocket expense can be life-changing. Surely worth including in marketing efforts, don’t you think?
Our own vehicle enjoys a bit too much vacation time in the service center. Using a VSC policy purchased at a local credit union, paid warranty claims have exceeded $6000 so far. Yet when we reach out to the institution to encourage promoting their impact, it’s been radio silence.
Talking about your mission is one thing. Showing examples of how that mission of financial empowerment saves members thousands (people like you, dear viewer!) connects emotionally. Plus, choosing to save money sounds like pretty rational decision-making to me.
Make Your Credit Union An Easy Choice
Insurance commercials focus on the ease of filing claims, speed of payment, and how their prices are better than competitors. That’s fine when you already know their products; usually it’s homeowners insurance (basically impossible to get here in Florida) and auto insurance.
Do your members (and prospective ones) even know the insurance products you offer?
And how often is their first and last response to them, “I decline”, on the loan documents?
Instead of talking about how “credit unions are different”, share the stories that will catch people’s attention:
- How Tasha avoided an out-of-pocket $8,400 expense after her car was totaled (with CU’s GAP)
- When Steve could get his $3,500 car repair completed for only the $150 deductible (with CU’s VSC)
- That time when Andy unexpectedly lost his job, but had his $545 monthly loan payment waived for 4 months, when he found another position, relieving the financial stress (with CU’s payment protection)
If your marketing simply said, “our credit union offers GAP, Payment Protection, and VSC, and they’re cheaper than the dealer”, would it generate an emotional connection?
Use your data. Surface the real stories. If you can get the members to tell them, even better.
Sure beats promoting that members get a vote in your operations.
