LAS VEGAS–One credit union is successfully driving ROI on its business development initiatives using root beer. And it’s a lesson others can learn from, according to the CU.
Two people speaking to the CUNA Marketing & Business Development on the subject “Business Development: ROI to Make Your CFO and CEO Smile” shared the strategies their credit unions have employed—including that root beer.
Speaking to the meeting were Lynne Jarman-Johnson, chief marketing officer with the $1 billion Consumers CU in Kalamazoo, Mich., and Major DeBerry, business development director at the $300-million St. Louis Community CU, which primarily serves members with low- to moderate incomes and average credit scores of 580-600.
DeBerry, who frequently represents the credit union at events, shared these “practical steps”:
- Always be ready for business
- Ask who can help you
- Cross the finish line
- Continue the engagement
“Business development touches everything in your organization. When I say always be ready for business, that’s networking. I have business cards with me everywhere. When I go to the gym, I have business cards in my bag,” related DeBerry, who called himself the “king of the warm introduction email.” My boss says ‘We’re in a marathon, not a sprint.’ But every race has a finish line. You have to figure out where that is. You have to cross the finish line. After that, you have to continue the engagement. That’s about serving that organization or people.”
DeBerry acknowledged it’s a challenge in a professional position to also volunteer time, but said, “I promise you, if you serve first, the business will come.”
DeBerry’s Practical Steps #2:
- Listen
- Respect
- Remember
- Honesty
- Expectations
“Slow down and focus on that one person. Relax and listen,” said DeBerry. “Listening to what they are saying is so key. With respect, because a lot of our members are low- to moderate-income, they believe the myth they can’t be banked. When you give respect to people who don’t expect it, that’s the beginning of a relationship. They will be with you and stick with you. You are their guy. Remember why you work at a credit union. Be honest with people—tell them you don’t know if you can help them, but you will try.”
Service is the currency, said DeBerry. “If you serve your member and potential member, I guarantee you the business will come.”
SEGs Then Community Then SEGs
Jarman-Johnson said Consumers CU had been founded as a SEG-based credit union, then exited that focus, before returning to it. In refocusing on SEGs it has created a program called “Consumers @Work.”
“We now have a huge percentage of new members due to that philosophy of focus,” she said.
Jarman-Johnson said the number-one thing a business development officer can do is “unsilo” the idea of marketing or business development. It’s marketing AND business development and everyone in the credit union is responsible for both, she said, regardless of job title.
Jarman-Johnson said Consumers CU operates internally with extreme transparence. Its internal action plan is available to everyone as part of its focus is on accountability. “Holding people accountable isn’t a negative,” she said. “It’s a way of letting everyone know what it is you’re trying to do.”
Every member of the Consumers CU team knows the current month numbers and whether they are on track, she said.
“If the team doesn’t know, the campaign doesn’t go. That’s true for business development, that’s true for anything,” Jarman Johnson said.
Root Beer Drops
Looking to differentiate itself as it made cold calls on companies in its markets and around its branches, Consumers CU created “Root Beer Drops.” That is, it delivers root beer to various companies along with other materials.
In doing cold calls, it now takes root beer with it as part of a program called “Root beer drops.”
Consumers CU does 16 Root Beer Drops per month per market, doing 400 Root Beer Drops in all during 2018. It now has the root beer stocked in its office, selecting a local brand that also has a long shelf life for distribution.
“In just a short time after we started it, we had $2 million in deposits, $300,000 in loans closed, and $3 million in loans in discussion that we expect to close,” said Jarman-Johnson. “This is not a short discussion. It’s a long haul. We would not have those if we didn’t do all the things that continue after we do the Root Beer Drops.”
Program Expands
Now, for 2019. Consumers CU has expanded the program to include Realtors as it seeks mortgages, and invest services firms. “This creates an action in the market for people who would never consider themselves part of the business development team,’ said Jarman-Johnson, who said it measures success one drop-off at a time.
“We drop off the root beer, and people return calls,” shared Jarman-Johnson. “In marketing, you have to think about how you are touching people in different ways. If you did a lot of referrals and no one follows up, what’s the success. Once you’ve dropped off the root beer, that’s an action that demands follow up.”
The program has been so successful Consumers CU has now developed new personalized six-pack root beer carriers.
“That changes the ballgame. We now look different in addition to just being different,” said Jarman-Johnson.
She explained that when the root beer is dropped off its representatives make clear a follow up call will be coming. “It just starts the ball rolling.”
So, what is the ROI? According to Jarman-Johnson, in addition to the figures cited above, its percentage of local business that have been penetrated is up 45% in just one year.
Finally, Jarman-Johnson offered a reminder during the meeting of one of the basics that is often forgotten.
“The other thing is ‘ask.’ Sometimes, it’s that simple. That person you’re dealing with might have exactly a problem we can solve. Ease that pain and you will win,” she said.
Other Ideas shared by audience members:
- Spokane Teachers CU pays for a local coffee truck to sit outside a business and organization. Cups include a sticker noting coffee was paid for by STCU.
- A credit union serving the University of Massachusetts aligned with the Contemporary Museum of Art to display local artists’ work in its facility. The artist also does an art talk at the end of the exhibit. “Now we have people coming in off the street to look at the art, and then they join. We have 17 local artists in line to display their art. And it’s local, so they tell all their friends. It’s been amazing.”