Credit unions attracted a lot of attention in the fall of 2011, but a big question remains: Temporary fling, or the real thing?
It looks like more than 400,000 consumers left banks to join credit unions during the third and fourth quarters of 2011. Most of them brought the most treasured of prizes to the credit union – their checking account … core deposits! … payroll deduction! … PFI! SCORE !!!!
In fact, an early look at year-end data shows that credit unions in Massachusetts saw 10 percent growth in checking account balances and nearly 7 percent growth in the number of checking accounts. Some credit unions reported double-digit growth in the number of checking accounts.
So now what? Is this going to be a real relationship? Credit unions across Massachusetts and the nation are faced with the challenge of actively reaching out to new members, as well as old members who have decided to deepen their relationship.
It shouldn’t be hard to “outcharm” the consumer’s previous flame. A good checking product, reasonable fees and friendly service should do the trick. But how many credit unions are really reaching out to impress their new members with all of the great products and excellent deals they can provide?
Keep in mind, these new members and new account holders didn’t just stumble into the credit union. They came with expectations. They sought ought the credit union expecting great service and a new way of doing business. What a terrific opportunity: Their ears are open; they are ready to hear your pitch.
All On Board
Most credit unions have heard of the idea of “On Boarding.” It’s a trendy term used in marketing that refers to devoting a great deal of attention to new customers to develop a close affinity between them and the new seller/provider through frequent (and, in the best case, high quality) communication throughout the early days of the new relationship.
There are actually a number of software programs that automate this process. They are worth a look, but there are a number of simple things that credit unions can do without a great deal of effort. For example, give them some:
Attention – Reach out to new members frequently, but in a way that is meaningful and useful. For instance, create a “quality assurance team.” Call every new member one week after they open an account. Ask them if they have had any problem using their debit card, finding a surcharge-free ATM or accessing the credit union’s online banking. Have the staff member give her name and ask members to call her back directly if they have any problems or questions.
Affection – A week after the quality assurance team calls, send the new checking account holder a $5 gift card to a coffee shop as a thank you for opening an account. Sure, it costs money, but what does it cost to attract a checking account using traditional marketing? Bank Transfer Day saved credit unions a lot of marketing money. Share the wealth with your new friends.
Reasons to stay – If they liked your checking account better than the huge banks’, why wouldn’t they like your credit card or auto loan better? This is not the time to be shy. If the new member or checking account holder isn’t going to open your e-mail or letters during the honeymoon period, when will they? Send them a detailed comparison of your credit card and one from the bank they came from before the first month is over.
There are many ways to seal the deal. But if you want to build a lasting relationship with these new members, it is vitally important that you get in touch and ask for another date.
