A Second Opinion

by Ron Daly

Monday's article about CUs picking up steam was full of examples of credit unions making the news for their exceptional service and their remarkable best practices. Some folks don't think we've come quite far enough in the past year, and that we still have further to go. 

When you learn about business and marketing, you're always told to think about what's next as opposed to what's now. What's NOW is that CUs are getting a little extra attention because we're the "good guys". What's NEXT is up to the industry.

Take the Skeptic for example. Not just any skeptic, mind you - the CU Skeptic and a guest post by Bill Grizack of BrightLeaf Financial Network. Grizack started off by declaring himself an "outsider", someone who works around and with credit unions but has never worked for one. His article points out which credit unions were making it into the top ten in overall satisfaction (by region) on the JD Power and Associates study in retail banking - zero. From there, Grizack shows credit unions not ranking on bankrate.com and the 2008 Forrester consumer ranking of FIs (NOTE: Monday's data shows Forrester Research results for customer experience - it is not reflective of financial matters so much as how people felt when using a CU). 

Now We're Cookin'!

by Ron Daly 

We've all seen the good press that's been on the major networks about credit unions, it's no surprise that more and more folks are becoming aware of CUs and signing on as members. 

More on Suze Orman and Credit Card Connection

Remember our story about Suze Orman on CNN? She's continuing her support of credit union credit cards along with Ondine Irving and Credit Card Connection. According to Irving's recent update on Card Analysis Solution, Orman has been singing the praises of CU Credit Cards on Larry King, Campbell Brown, Oprah, Wendy Williams and Fox News. On the Credit Card Connection website, Ondine Irving has her "Dean's List" of credit unions that offer cards with fair percentages and member-friendly standards-of-practice. You can qualify, too - simply contact Ondine on her website and ask how you can make the Dean's List.

Some industry insights from Callahan and Assoc.

More and more folks are getting their first mortgage (or a refi) through a credit union. Displaying data from Q3 of 2009, this creditunions.com article shows people in the secondary market getting home loans increased by almost 300%. Maybe this is an indication that folks out there in the real world are hearing all the praises being sung about CUs?  Maybe, as Callahan and Assoc.'s President  Chip Filson says in this piece from Thanksgiving: 

"As the 21st century unfolds, this indeed could be the century for cooperatives to show how competitive organizations can be both productive and managed in the member's best interest."

Let's not forget about the member experience...

There are folks out there that say being good to the member doesn't mean as much as we think it does, and that we shouldn't count "member satisfaction and appreciation" as a selling point in our business model. 

This year's Forrester Research Customer Experience Index would disagree, it seems. 

This year, the winner for best Customer Experience was "a credit union". Not any specific CU, mind you - just credit unions in general. Members liked that their CU met their needs and were enjoyable and easy to work with, as opposed to top banks in the industry that were called out by name. 

Right now, the lime light is on us, as an industry, and the light is very flattering. This doesn't mean, however, you're allowed to rest in your efforts to drive up deposits and loans and increase your membership. 

We've still got a long way to go, in some areas - and we'll examine those in tomorrow's post. 

NARFE Premier says "Get on board!"

by Ron Daly 

[Read all about this story on CUTimes.com or at CUNAMarketingCouncil.org] 

NARFE Premier FCU in Alexandria, VA started using the Automatic Relationship Builder last summer to bring new services and products to members' attention. 

Wanting to branch out into the world of email marketing, NARFE Premier marketing director Jessie Dederer turned to the team at DigitalMailer. Our recommendation? An on-boarding program aimed at new members who may not have been aware of everything NARFE Premier had to offer. 

On-boarding campaigns are aimed at members that have just joined a credit union. The Automatic Relationship Builder takes in new member lists and sets up a series of emails to be sent to those members across a few weeks. A simple welcome email is followed by information about loans, mortgages, HELOCs, credit cards, checking accounts, money market accounts - anything the credit union thinks would be of interest to new members. 

NARFE Premier's own campaign proved to be a great success. Deposit accounts increased 24%, while loan accounts increased 190%. From the CU Times article on NARFE Premier's on-boarding campaign:

"This helped trim our marketing budget by 40%, and we are looking at finishing the year spending 50% less," said Dederer. "It's a win-win for everyone. We save money and are still able to deliver the same message with better results while reaching our members the way they want."

Want to get started with your own, customized on-boarding program? Click here to contact us.

Getting Carded

by Ron Daly 

It used to be that "getting carded" had to do with proving your age. Now, it's realizing your credit card has gone completely screwy. Whether it's jacking up interest rates, shifting due dates or monkeying with the fees, the big lenders are doing their darndest to card you and hoping you'll screw up so you have to pay through the nose to fix it. I've been carded, but then again I'm the kind of guy who can manage my money and maintain my credit rating. Where this kind of thing gets scary is when it comes to the unbanked or underbanked out there who don't have a lot of options when it comes to credit.

It's stories like this that really upset me - ones about subprime lenders that actually have the nerve to charge nearly 80% APR (click here to read the full story). 

Knowing that their customer base is already prone to credit errors and defaults, subprime lender First Premier is gaming the system ahead of new legislation in February that cuts down outrageous fees but, apparently, not an outrageous interest rate. 

Can no one out there reach the folks who might be thinking this card is their only solution? Isn't one of those cardinal rules for CUs that we should be serving the underserved and promoting thrift? There's nothing thrifty about paying a 79.9% interest rate. 

Recently, credit unions have been getting their share of good press with a focus on interest rates and credit cards. CNN Money correspondent Gerri Willis recently covered this same territory in her feature on CUs, highlighting fees and interest rates at the average credit union versus the average bank. The media is getting warm to the idea of doing personal business and managing money at a CU. Start using that good press to bring in new members. 

Tell us about some of the ways you've been helping folks that have been "carded" in the comments section.