Credit union conundrum: Cost vs. results

Credit Unions of all shapes and sizes want to grow.  But at what cost?  Do budget allocations limit outcomes?  Or… does the expected benefit or real, provable result rule decision making?

Let’s look at marketing as an example.

Are your decisions driven by the cost…or by the expected results?  For example…historically your credit union has spent $20K (10% of your budget) on Direct Marketing…and you have generated a fair response.  Not great…but it was worth doing…

Yet the constraints of the budget (we spend $20K on Direct Mail) prevent you from being bold.  Even if the rewards are worth it.

Conversely, if results are the key to marketing…wouldn’t you adjust your spending to maximize revenue and profit growth – in the hopes of helping as many members as possible?  This is different than allocating dollars to different things (especially because you always have.)  Shouldn’t the potential benefit of the campaign trump all?

If you could spend $50K and get $100K in profit, would you?  And if the 50 large isn’t in the budget, could you shift your budget around (or would you fight to do so) so you could deliver the result?  What if you could get $400K in profit from $100K in marketing cost?  Would you be so bold?

Are you driven by cost…or results?

It is often difficult to free one’s mind from the shackles of the past and “this is how we have always done it” thinking.  There is comfort in the familiar, right?

Yet discomfort aside, there is dramatically greater success connected with change, than sameness.

Cost isn’t important.  Only results matter.  Members that are engaged and shown the value of membership…matter.

I encourage you to examine one such program here.  Or don’t.

Marketing, like everything, is about Results.  Nothing Else Matters.  Not even cost…if the results are sweet enough.

Right?

Jay Kassing

Jay Kassing

Jay Kassing is President of MARQUIS, a Texas based provider of marketing analytics solutions including MCIF/CRM software, MCIF services, profitability, compliance, consulting and direct mail creative/fulfillment. Jay has ... Web: www.gomarquis.com Details