Pass It On: A referral program that works

Member Mania couples a cash incentive with engagement expectations to draw in potential members as well as reward those who actively promote the credit union.

New members find their way to a credit union via multiple channels: word-of-mouth, indirect loans, a convincing piece of marketing.

The breadth of channels is wide; the depth of relationship incurred varies just as widely. Indirect members are notoriously difficult to cross-sell. A member that joins the credit union via word-of-mouth can bring with them a suite of products — or just one.

Economic participation is the lifeblood of the credit union business model as well as one of the movement’s seven cooperative principals. One source of new memberships, referrals, does tend to produce active, engaged participants.

“We find members who come through our Member Mania new member referral program to be more engaged,” says Holly Smith, vice president of marketing at Heritage Federal Credit Union ($601.5M, Newburgh, IN).


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