NASHVILLE–Shotgunning out mass marketing to credit union members is more than just inefficient, it misses the opportunity to effectively generate new business, according to one person who shared some advice for improving response rates to credit union promotions.
“The key is segmentation,” said Rob Macari of Lending Solutions, Inc. (LIS). “In order to amplify the seasonal highs of products, we need to append and segment our member profiles. This allows us to identify and size the optimal archetypes for each product.”
A key segment to target, according to Macari: Women. “Women are the key decision-makers on 70% to 80% of all personal financial purchases,” he told the CUNA Lending Council’s annual meeting here.
Beyond segmentation, it’s also critical to recognize that “omni-channel member service is the key differentiator and activator, which also nurtures loyalty,” he said.
“We have to make sure the approaches to members are relevant; it has to mean something to them,” said Macari, citing as an example, credit cards, which are best timed to late summer and early fall. Auto loans, on the other hand, are best targeted in Spring and early summer.
“The minds and hearts of members are always open to new ideas, but we have to present them at the right time,” he said.
What may surprise some CUs is just how frequently they need to be targeting members and prospects with messages, according to Macari.
The goal should be 30 to 40 impressions per month, said Macari. He noted email continues to be the engine, that generates awareness and consideration (one to five impressions per month.) Digital display ads, such as those on Google, Twitter, Instagram and Facebook keep a CU top of mind with 20-30 impressions per month. Statements, obviously, offer just one impression per month.
Its outbound phone calls—a service LSI offers—are the most critical piece of activation (four to 12 impressions per month), he said.
LSI’s Outbound Solutions offers a historic (based on 2.4 million calls) 52% contact rate, with a 10% conversion for credit card offers. He said 79% of financial service consumers say they would not have switched to a competitor if their credit union had contacted them with ways to enhance their experience.
“We can’t talk to these members enough. We want our first interaction with a member to happen in the first week or two,” he said. “And we want to be available to always answer the phone and ideally build multiple relationships with that member. But calls don’t mean a thing, however, unless we get a conversion. Otherwise, it’s just cost.”
He said 46% of member research and product conversions occur outside of traditional business hours, with 88% of people saying they want to talk with a live person. Macari said in-person and on-the-phone channels outperform digital channels in “building trust and nurturing loyalty.”