Focus and find the right consumers for your credit union
Fall ushers in yet another switch of the season, bringing with it the changing colors of the leaves. Change is happening all around us. Heraclitus of Ephesus, a Greek philosopher known for his doctrine of change being central to the universe, stated, “There is nothing permanent except change.”
Change can be scary. But change is needed to continue to CU Grow.
Last month I wrote why credit unions need a change in purpose to succeed in a digital economy. People continue to hurt emotionally and financially in today’s economy and are looking for hope.
Who are credit unions giving hope to? Anyone who lives, works, worships or goes to school within the community a credit union serves?
A change of focus is needed as credit unions can’t help everyone as much as they want to. When trying to be all things to all people, a credit union can risk becoming nothing to no one.
With the rise of digital, I believe there will continue to be more focused non-traditional financial providers targeting, attracting and converting niche segments of consumer markets.
In the past, a credit union may have sent out generic marketing messages to everyone who lives within a mile radius of their branches. But what good does that really do? How does the offer provided compare to other financial institutions beyond “great rates and service?”
Instead of taking an approach to try and appeal to everyone, a credit union needs to focus messages to specific niche target groups of consumers that align with a their reason for being.
For example, let’s say a credit union’s purpose and reason for being is to build stronger families. Since money is the number one cause for marriages to fail, a credit union can focus their efforts around this positioning with complementary products, services and communication strategy. In another case, if a credit union’s purpose and reason for being is to build up the local economy, a credit union can work to bring local businesses (SEGs) and consumers (members) together to engage in commerce with one another.
Some credit unions may say it’s too limiting to focus on smaller niche markets, but I beg to differ. Through the rise of digital, empowered consumers now have more choices and preferences when making a purchase decision for a particular product or service. Taking time to tap into these personal choices that focus on the individual needs of consumers is far more in line with “people helping people.”
So I challenge credit unions this fall to note the changing color of the leaves, and like the leaves, think about the changes needed to continue to CU Grow.
