FRISCO, Texas–There are 10 economic, demographic and psychographic trends credit unions need to be leveraging—and they need to be doing so now, according to one person.
Speaking to Catalyst Corporate’s Economic and Payments Forum here, Kelly McDonald, a marketing and advertising specialist, the founder of McDonald Marketing, and the author of three books, said the only way credit unions can prosper and grow moving forward is to recognize the trends–not fads–that are here to stay and adjust attitudes, approaches, messaging, marketing, and more.
The Key Trend
Before sharing her list of 10 trends, McDonald cited a mega-trend that is affecting all credit unions: America is becoming more diverse. Today, one-in-three people in the United States is nonwhite, and next year’s Census Diversity Index is expected to score as a 65, meaning if two people are pulled together at random, there is a 65% chance they are ethnically diverse.
But diversity is about much more than ethnic group, said McDonald. It extends to huge number of other forms, and beyond just gender or age or income. Other ways diversity can be found in members, said McDonald, include introverts vs. extroverts, creative vs. analytic thinking, morning people vs. night owls, small business owners vs. exec at large corporation, and even Apple people vs. Google people.
Trend #1. Companies Get Real And More Brave
“When I started in marketing, the number-one rule was don’t rock the boat, don’t cause controversy,” she said. “We’re seeing that change now, because people want to see ‘the real real.’ Companies are adapting and realizing that ‘real’ drives business. People respond to images that they can relate to. For instance, 40% of people 18-35 have four or more tattoos.”
As other examples of being real, McDonald said Cover Girl has featured a “cover boy” and a Muslim model, CVS has banned photoshopping of models in its beauty product advertising, and “Curvy Barbie” has been introduced.
Trend #2: Give People What They Want
As an example, McDonald said CUs should recognize the differences between men and women:
- Women want expansive options. “They want to see all their choices,” said McDonald.
- Men want their choices simplified. “The magic number is three,” she said, adding marketing messages to men area always offers made in groups of three. Give women all the choices and let them discuss. Tell men “our three most popular options are.”
Trend #3: Millennials Now Rule–And Change Family Structure
“Millennials eclipsed boomers in 2019,” said McDonald. “They are now the largest population group in the U.S. One of the things we’re seeing is they are postponing marriage. In the 1960s, more than 80% of people between 18-34-year-olds were married. There has been a 50% drop in four decades, and now it’s 29%.”
Why the delay or pushing back on traditional standards? According to McDonald, Millennials said:
- They are focusing on personal goals such as finishing school and establishing a career
- They don’t feel ‘economically ready”
- They are skeptical
Millennials are also not willing to wait to have a kid, so they have one. “It’s something they can control. The iconic American family -- married couple with children – accounts for a mere 22% of households. Seventy-eight percent don’t fall into ‘married with children.’ Family has been redefined.”
Trend #4: Marketing That Taps Into Values
“People spend money on what they value,” said McDonald.
To support values, women want testimonials and customer reviews online. “Women really value what other women say, even if we don’t know the women,” said McDonald. “The good news for you as credit unions is this doesn’t cost you anything. Get testimonials from women and throw them up online.”
In the case of Millennials, they value financial literacy education. “They are scared. They know they don’t know anything,” said McDonald. “They are starving for financial literacy. But they don’t want to be made to feel stupid. They want information that feels respectful.”
Millennials would also rather join a cause than a club (the difference is clubs exclude people, causes bring people together), MacDonald said. “Credit unions are all about standing for the right cause.”
Trend #5: Where We Spend Money…And Where Not
In 1955, Americans over 55 bought one-third of all new cars. Today, that figure is two-thirds, said McDonald. That’s because many younger consumers embrace the “used” and the “shared” economy. “I think this is a megatrend and is only going to get bigger.”
Trend #6: Being the Good Guys
“I would urge you to market your ‘good guyness,’” recommended McDonald. “The point is doing good is the new cool. But you have to let people know the good things you do. They want to see your soul.’
Trend #7: Shorter is Better, and Simple is Awesome
McDonald said credit unions need to make it easy on consumers by making things fast, simple clear and not clunky. “It’s now a do-it-myself world, and credit unions must adjust,” she said.
The number-one pet peeve of consumers: technology that doesn’t work.
“Check your site for broken links,” advised McDonald. “If someone is already on your website and then they find a broken link, you’re not trying to get that member, they are already there.”
Credit unions must also recognize that no one reads anymore, according to McDonald. Instead, they skim or look at pictures. “The fact of the matter is you’re not going to change this. People are not going to read. The number-one culprit here are big long, honking, rambling emails. You’re never going to read it, you’re never going to have more time. White space and bullet points are your friends. They allow you to skim through it, which is what you’re going to do anyway.
Trend #8: Mass is Out, Customization is In
“Customization lifts business and ignites passion,” said McDonald.
Trend #9: Social is Everything.
“Is there anything less social than doing business with a vending machine?” asked McDonald. But not in every case. She pointed to vending units from Pepsi that ask, “Do you want to send your friend a drink?” The buyer is able to swipe their phone and share another person’s contact info with the machine, which then sends a message to the other person letting them know a Pepsi is waiting for them at a social vending machine. New products meet our demand for connectivity”
Trend #10: Helping Beats Selling
“We don’t need information, we need advice,” said McDonald. “You are in the guidance business. Helping people along the way with the products and services you have—that’s what people want from you. If you really want to help your members, train your people to help.”
Six Things
Finally, McDonald said there are six things every credit union can do right now that don’t cost anything but will make a difference:
- Show people as they really are. Consumers today want authentic, not perfection.
- Adapt to others and their differences. Give people what they want.
- Shorter, faster, easier is always better. (Shorten all your emails.)
- Doing good is the new cool. “Tout your good deeds and community involvement.”
- Train your people—help them to help your members.
- Examine your business for ways that consumers can customize their experiences–and share it.