Hit Your Growth Commitments in 2019
Credit unions and community banks play a vital role in providing financial services to individuals, but these organizations face increasing pressure to stay competitive in an industry dominated by large national institutions. Credit unions and banks must take a smart approach and plan ahead to achieve business growth and expansion. To successfully attract new customers and hit 2019 goals for marketing and growth, these smaller organizations should utilize the following strategies.
Monitor acquisition costs
Like any New Year’s resolution, performance tracking is essential to maintaining progress. Credit union leaders can compare the costs to acquire a new cardholder against a benchmark such as the Credit Union Cost Per New Member Performance Index, even analyzing data at the individual state level. Banks and credit unions should consider whether their growth figures and costs provide strategic value, remain competitive within the marketplace, or need improvement.
Targeted marketing approach
From advertising to lead generation, modern marketing platforms offer a level of personalization to truly connect with and reach new potential customers. Creating a baseline profile of prospective customers will determine which financial products and services are the most important and relevant in their lives. From audience engagement via social media to digital content strategies, even the most traditional institutions are becoming creative to stay competitive.
Tap existing customers
Providing quality customer service allows banks and credit unions to best leverage their existing member base. The cost of retaining existing customers is far cheaper than acquiring new members, which translates to bottom-line savings. Additionally, customers who have positive experiences and establish a strong relationship with their local bank or credit union are far more likely to recommend services to their friends and family.
The opportunity to hit new growth goals based on word-of-mouth referrals is understated for organizations that serve the local community. One way to keep existing customers engaged is by establishing reward offerings through programs such as Buzz Points. Ultimately, credit unions and local banks are in business to provide a valuable product or service to their loyal members and customers.