Press

ACUC: CU Success Comes with Understanding Member Behavior

Getting Credit Unions Focused On How Members Think

NEW YORK, NY (July 2, 2013) “Credit unions’ assumptions about members are often rooted in old standards and not the facts,” David Polet, director of CUNA Mutual Group’s Voice of Customer division told attendees of Americas Credit Union Conference (ACUC) Tuesday.

In his Discovery breakout session, “Turning Today’s Consumer Insights into Tomorrow’s Business Success,” Polet said, “According to our research, 88 percent of credit union members have relationships with other financial institutions and that means, for at least part of how members think about finances, credit unions are not the preferred option.”*

Polet presented assumptions that “many credit union marketers think the Gen Y members might not be smart with their money and they definitely don’t think about retirement savings.” A recent survey shown to the ACUC audience contradicts those assumptions.

60 percent of Gen Y members are saving for college for their children.**
71 percent of Gen Y members began planning for retirement before they were 26 years old.**

“It’s time to challenge all of those assumptions of members because we can’t keep making marketing decisions based on prejudices,” said Polet. “There are a lot of pressures on credit unions to gain market share, and research shows if credit unions aren’t out in front of members to showcase what you have to offer, they will look elsewhere.”

The shift in consumer channel preferences for finding financial products has gone from call center-focused to almost exclusively online. Polet referenced new research from the 2013 Insurance Barometer Study:

86 percent of consumers use the Internet as part of their life insurance purchases.
33 percent of consumers work through a call center/local agent for insurance purchases.

The ACUC audience learned that successful development of marketing strategies lies in asking the right questions. Polet said, “When planning strategies, credit union marketers need to ask themselves ‘Why would my members or potential members get a loan from us? What do I have to offer that’s meaningful to them?’”

Polet wrapped up his remarks stating, “If credit unions integrate the answers to those questions into marketing plans and decision-making processes, chances are higher that your members will have a willingness to buy your services and be thankful for the relationship they have with you.”

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CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual Group’s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company’s website at www.cunamutual.com.

CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. TruStage^TMAuto Insurance Program make available through TruStage Insurance Agency, LLC and issued by leading insurance companies. The insurance offered is not a deposit, and is not federal insured, sold or guaranteed by your credit union.