Marketing amid economic changes

When deposits, membership, and CRM rule the day

Every generation of credit union marketers is eventually faced with a changing economy, which requires a promotion of deposits and membership alongside loans. Sure, shares aren’t as glamorous as a new car or house. But maintaining a healthy loan-to-share ratio is essential — especially if you want to keep regulators and your board happy. We have some tips to help you boost overall savings, new memberships, and loans at your credit union, sleep a little better at night, and how a CRM (customer relationship management) can help make it happen.

Let’s talk ratios

As most credit union professionals will attest, the loan-to-share ratio is an indicator of liquidity. Credit union regulators are happiest when that ratio sits somewhere above 80%. Just after the Great Recession, the loan-to-share ratio hovered around 65%. By 2018, the U.S. had reached over 85%, according to a 2022 report from CUSO Magazine. Then the pandemic hit. The average ratio dropped to the mid-70s. That’s quite the rollercoaster.

Since then, things have changed again. According to Q3 2022 data from the National Credit Union Administration (NCUA), the total loans at federally insured credit unions increased to $1.46 trillion. During the same period, deposits reached $1.69 trillion.

Those are good numbers. However, will members continue to borrow money? Will they spend their money on new cars, dishwashers, and home remodels? And will they lock away some of their savings for a rainy day? You can answer “yes” to all of the above. Especially if you offer great savings and loan rates and continue to tell current and potential members about those products and services.

Make it easy for new members

How do people join your credit union? Do you force them to come into a branch? If so, it’s time to rethink your strategy. Consider that Baby Boomers are increasingly going online and utilizing smartphones according to a recent survey by Cornerstone Advisors. On the flip side, Gen Z and Millennials are happy to go to a branch or meet online for a face-to-face. Allowing your potential new members to find a way that is convenient for them is paramount. Offer in-branch, online, over-the-phone, and by-mail new memberships. You, and your new members, will be glad you did.

Get good at wooing (and wowing)

Instead of pushing sexy auto loans and low monthly payments (which has been the standard for over a decade), your new job is to also sell great savings rates and financial security.

Savings isn’t glamorous, until you dig deeper. People who save more often report better overall health and psychological well-being, according to a University of Arizona study titled, “Materialists values, financial and pro-environmental behavior, and well-being.” That’s info you can use to add some interest to deposits. Pun intended.

Apply your online knowhow

85% of consumers, your potential members, use the internet every day, according to Pew Research Center. Here are a few areas to consider as you target those individuals and households with savings and lending offers.

  • Optimize search results for your credit union. That includes map listings, special offers, and overall reviews.
  • Create online content people want to read. This can include financial tips and advice to help them get ahead.
  • Use paid search advertising. You can move up to the first page of many specific search results. Don’t forget to promote your deposit rates.
  • Focus on social media. If needed, hire a company to manage your accounts.

Focus on your current members

How well do you know your current members? When was the last time they called? Are they interested in better savings rates? Have they been shopping around for a new auto loan? How would you know?

The right CRM can answer a lot of your marketing questions and deliver real-time data you can use to communicate with and to your members. That includes data to cross-sell savings and checking accounts, add more loans to the books, and help your credit union grow.

Imagine if all the information you have on your members, from in-person conversations to website traffic analysis, could be accessed and shared on one system and/or screen. You’d make the journey seamless for the members and your employees.

CRMNEXT makes it ALL possible with vertical integration done by our team of in-house pros.

Win more marketing objectives with CRMNEXT

Instead of hiring a third-party or taxing your internal IT department, the CRMNEXT team takes charge with integrating your CRM with your core. We work hand-in-hand with your crew from beginning to end. That includes our in-house consulting and implementation team, which builds a CRM strategy specially for your credit union. When everything is set up, the front-end and back-end will be tied together. That means critical details can be shared to ensure members get the right product offers at the right time and feel the personalization no matter how they interact with your credit union.

CRMNEXT is the all-in-one solution to help your credit union reach that next level. Your free demo awaits.

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Brooks Fowler

Brooks Fowler

Brooks Fowler is Director of Strategic Accounts at CRMNEXT. Web: crmnext.us Details