Will your members choose your card for back to school shopping?

Depending on the part of the country you are located, back to school shopping is beginning and will continue through September. Gleefully, and somewhat melancholy, Fall 2018 marks the first year since 1993 that I will not be buying back to school supplies, as my three children have now completed K-12 and college. No more shopping for back to school supplies or education needs and wants.  

During a recent stop to Walmart I noticed their in-store Go Back BIG messages and picked up a couple school supply lists to see what consumers may be buying this year.  ALL STUDENTS NEED EARBUDS FOR IPADS – now that is a sign of how learning has progressed. When my girls started school, we didn’t have the internet, let alone iPads and laptops!  One of the lists I reviewed contained 21 items for a student in Kindergarten, ranging from a backpack (no wheels) to crayons and glue sticks. Now may be the time to buy stock in Crayola using my new-found cash flow.  

Back to school shopping is big business for retailers, in-store and on-line.  Will your credit union card products be top of wallet? The National Retail Federation recently projected back to school spending will generate nearly $82.8B in sales, nearly as high as last year’s $83.6B. Credit Unions need to identify strategies to capture their member’s back to school spend.  

Families with children in elementary through high school will generate $27.5B of the projected back to school spend volume, while young adults heading to college, and grad students will generate $55.3B during back to school shopping.

Now more than ever, it is crucial for credit unions to connect and engage with younger members and potential new members, who will be generating 67% of back to school spend, by offering robust credit and debit card products featuring rewards, and safety and security messages for on-line and in-store purchases.

Three ways events like Amazon Prime Day are changing the back to school calendar

Additionally, use social media to connect with members and share back to school messaging.  Help them with smart budgeting tips to plan for the projected $684.79 expense per household. The biggest change in back to school spending is coming from electronics, and issuers need to remind credit cardholders of special warranty services or extended warranty along with price protection their credit card may provide.

Attend a Payments Academy session this Fall to learn more strategies for credit and debit portfolio growth!