As consumers’ budgets are feeling the pinch, so is yours. And when times are tight, credit unions’ marketing budget is typically the first to go, which is contrary to research shows brands that continue their brand marketing not only do better during economic downturns but grow market share, which helps them continue expanding their reach well into the future. In addition, credit unions’ not-for-profit structure allows for countercyclical marketing, because you need enough net income to keep the lights on and the regulators happy, but short-term profitability is less of a concern than it is for your for-profit competitors.
Experts suggest setting a 7%-8% of revenue budget for marketing, but small businesses tend to only invest about 3%-5% of revenue for their marketing budget. That means a $165 million credit union with $4 million in revenue should earmark at least $120,000 for its annual marketing budget. Blowing through $10,000 a month will be easy in many credit union advertising markets!
So, how can a boutique credit union get the most out of its marketing budget?
Absolutely, number one is ensuring a spectacular user experience on your credit union website. All of your credit union’s digital marketing strategy points back to your website. It is your foundation. A good percentage of your social media posts and all of your ads should connect interested potential members with exactly the information they’re looking for.
Each credit union should experiment with what works best for them and their members on social media between brand building, engagement and promotional posts, but include links back to your website when notifying followers of a timely blog or sharing your latest community efforts.
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