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Home > Banking News > Consumer Relationship Marketing: Family Savings Accounts Are One of Many Credit Union Touch Points
Consumer Relationship Marketing: Family Savings Accounts Are One of Many Credit Union Touch Points
(PRWEB) August 29, 2005 -- Since customer loyalty takes time to develop, it is hard for competitors to replicate. Marketing expert and accredited business communicator April Canik says credit unions often provide great models of effective consumer relationship marketing as they implement strategies to lure consumers away from banks and other financial institutions. Success increases when credit unions and other specialized service entities build customer loyalty via consultative selling, personal interaction, tailored services and specific solution-oriented messages.
“Credit union members can act like they own the place -- because they do!” says April Canik, a marketing specialist with 25 years of business communication experience. “By offering consumers a high-quality, cost-effective and highly personal option to other financial institutions, credit union managers have a great story to tell existing and prospective members -- and they are learning that there are many ways and benefits to telling that story.”
Credit unions, for example, can build a loyal customer base by touting their personlized services in print, point-of-sale displays, online messaging and in face-to-face settings. Here are several strategies that credit unions have used to provide marketing sizzle for their customers:
* Credit unions are boosting membership and expanding service lines by communicating with youngsters as well as retirees. Family savings accounts offer credit unions a way to cultivate personal relationships with youngsters who'll likely develop into life-long members. By encouraging their adult members to open accounts for their children and grandchildren, credit unions strengthen their consumer relationship marketing efforts with both age groups -- at once -- by providing materials and structures that teach money management skills to young people. Youth materials designed with contests and age-appropriate articles also encourage interactivity, and in-person visits to the credit union facility to acquaint them with the organization in a very personal way. By partnering with area schools, credit unions can expand their membership and facilitate money management training simultaneously. Other ways credit unions strengthen their consumer relationship marketing efforts include: inviting children to meet Santa at the credit union, to participate in a youth photography contest, and encouraging them to make deposits in person, in exchange for a candy treat.
* Credit union marketing specialists often also encourage the use of point-of-sale displays in their lobbies, on counters, and on signage at the street and drive-through windows. Colorful transparancies, banners, posters and flashing signs can serve as eye-catching reminders of special offers, new services and low rates targeting individual niche groups of customers.
* Cross-selling is another credit union marketing strategy in the consumer relationship marketing toolbox. Cross-selling is most likely to increase the success of the organization when staff members are compensated for increasing a members’ participation level. When a new member opens a savings account, credit union personnel encourage them to also open a checking account, apply for a low-interest car loan and sign up for a credit card. “It’s best to expand on that first opportunity -- in person -- at the point a member joins,” Canik says, “because your best customers are usually those that have three or more services at your credit union.” If a "personal ask" is not feasible, credit unions often send a postcard with a call to action that includes a special limited-time offer. The more tailored the offer is to each specific customer, the stronger the consumer relationship marketing results will be.
* Creatively designed and written statement stuffers can bring credit unions additional marketing punch, because members are highly likely to open the envelopes and review their latest balances. Credit unions typically do a great job at answering the “what’s in it for me” question in a colorful and inviting way that prompts curiosity or otherwise motivates members to call or visit the website for more information.
* Credit unions also model excellent consumer relationship marketing by promoting face-to-face activities such as free topical seminars and other educational forums. Annual meetings offer members the chance to personally interact with credit union personnel and develop a stronger sense of community with fellow members. Door prizes or discount drawings for credit union services help promote attendance, build excitement and strengthen customer loyalty.
* Newsletters, whether online or in print, that offer financial insight, friendly photos of members and staff and customer testimonials -- for example -- also serve to increase member participation which enhances customer retention, Savvy marketers make sure their information touts the central message that member-owned credit unions are professional, friendly, and -- most importantly -- that they are focused on the needs of each individual member, regardless of deposit balances.
"One credit union in Houston, experienced significant growth by launching a "Kid's Cents" and Youth Are Money Managers (YAMM) group for teens," says Canik. "These services personalized for the up and coming financial 'buyers' of the world help credit unions capture their consumer loyalty early and build on it for decades."
"These examples demonstrate how one non-profit industry is gaining ground on their bank competitors through customer relationship marketing," adds Canik. "These same personalized approaches can be tailored to any line of business to strengthen customer service and loyalty."
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