Short, Sweet, To-The-Point: The Twitterfication of American Business

by Ron Daly 

[This post originally ran on the DigitalMailer blog] 

Just read an article from CUNA Marketing and Business Development Council, “Reach Members in 140 Characters”. They have a lot of great examples of small businesses and community businesses using Twitter to draw interest and save on marketing. They address a lot of what new users wonder about Twitter, specifically:

• Listen to the “static” and the negative/critical talk, because you can. Nobody’s stopping you from finding out what Twitter users think.
• Spice it up by making your messages sharp and memorable – don’t just “robo-tweet”.
• Use your Twitter stream as a focus group/Q and A channel for curious parties.
• Start small and stick with it!

Many of the folks I talk to in the credit union industry wonder how you manage to talk to anyone about anything in 140 character spurts. According to a recent article from LifeHacker, phrasing the first sentence in an email can increase the chances that the email gets read. We all know that a solid subject line gets a reader’s attention, but what about the preview line? For example, you get an email:

Re: Business Collaboration Opportunity

Hi, John – I got your email recently and I’m curious about a possible collaboration between our business and your busi…

The subject line lets you know that A) The person writing is replying to your email and B) they want to talk business collaboration with you. It’s simple and direct. But then there’s your preview line that gets cut off without saying anything else to compel your reader. Want to make it pop?

Re: Business Collaboration Opportunity

We would love to discuss a collaboration with you. Please call me today.

Hammer down a few lines with a hard return or two with extra details and let that first sentence say everything that needs saying. With practice, it can turn your business communication on its ear and make it stand out to your readers.

Start making it short, start making it sweet.

The acorns are still small - is it time to quit watering the oaks?

by Ron Daly 

Here in Virginia (at DMI world headquarters), we've experienced very little rain lately. Last night, however, we had a real soaker. Everything that grows got a much-needed drink and the grass is suddenly greener on everyone's side of the fence. 

This heatwave/thunderstorm pattern's put me in mind of the debate about "Gen Y" members/customers and their late Gen X/Young Boomer parents. Should CUs go after young members in hope of "watering" these financial acorns into the might oaks their parents have been? Should they continue to ignore these (mostly) broke users in favor of more fruitful consumers with better credit? Lending opportunities will keep on going for boomers and Gen X, right? 

Maybe not. The picture's looking a little bleak for the rapidly-aging Americans that have turbo charged our economy these past sixty years. A report from the Today show this morning showed many Boomers and some Gen Xers will run out of retirement money during retirement. Quite a pill to swallow, but not unexpected given the events of the past two years. 

Here's where you prove yourself a clutch player in the lives of your older members. You continue to guide them through the rocky shoal of making sure they can have what they need to stay afloat when they're not working and trying to enjoy their "golden years". Reports such as the one mentioned and increased economic concerns will undoubtedly weigh on your member's minds. Be the shoulder to cry on. 

And then, there's the youngsters. Rob Rubin of FindaBetterBank.com wrote an article in the Huffington Post about attracting younger members and making a conscious effort to decrease the average age of a CU member. It's easy to get caught up in the hype regarding Gen Y and to be sold a bunch of snake oil about how your CEO has to breakdance on YouTube and get a million hits to save you from being acquired in a merger. It's far more important to look at the facts. 

There's a good article in this month's Credit Union Management magazine about "capturing" Gen Y members. It highlights the good work of credit unions like Shell FCU and their iLife program. An important snippet from that article: 

"A lot of kids saw the struggles that their parents were going through and they didn't want to make the same mistakes," says [Traci] Archer [, Marketing Manager]. 

And as a follow up: 

iLife seems to have indeed spurred a youth movement within the Shell FCU membership. According to Archer, in the Spring of 2008, the mean age for all Shell FCU members was 47. In Spring 2010, the mean age was 41. 

That's an actual result. Hard to argue with facts. 

The article has great examples from a lot of other credit unions that went on a mission to recruit more Gen Y members and succeeded with enviable results. It's easy for young people to get disparaged by the media and the current climate. You can be a shoulder for them to cry on, as well. Make it known you want to create a lifelong financial relationship with them and start treating them with the respect and due deference you've shown the generation that sired them.

That bit of "data" that was being thrown around a while ago about how much money Gen Y stands to inherit? It's looking to be less and less likely all the time. The generation that we presume has been handed everything they've got is very likely to miss out on the big bonanza we've pictured them coming in to when we're all dead. Does that mean you're going to have thriftier, sharper consumers when Gen Y comes of age? Only time will tell, but you could certainly guide these young, pliable members in that direction. That is, if you're interested in having any members at all in the next ten to fifteen years. 

Pay-for-Referral: Putting Your Money Where Your Word-of-Mouth Is

by Ron Daly 

I was over at CU Water Cooler's website, looking at the links of the day for July 6. Quick note to other CU pros: why aren't you over there reading these great stories and links? Get with it. 

One that jumped out at me was the story from MoveYourMoney.org about NetPromoter Scores for CUs, Big Banks, Community Banks and Online banks. I think the title/intended message is a little misleading (35% say they'd leave their banks "if it were easier"...switch kit vendors, take note!). But there IS something to talk about in this article - that awesome NPS for credit unions! 64% said they would refer a friend or family member to their credit union.

We know that the big reason people don't switch from a big bank to a CU or community bank is because they're under the impression that a switch is inconvenient or even difficult. We know that more than half of CU members would encourage friends to switch. What's the missing piece of this puzzle? 

I say incentives. We work with credit unions all the time that offer "$10 for every family member referred" and similar promotions, but is there any way to spice up the offer a little? What about a MAJOR giveaway for most friends-turned-members? 

I ask because I recently watched this interesting (if a little daunting) video about game design in real life. Apparently, the concept of "experience points" is enticing to people. "Leveling up" turns a promotion for "bring in the most members" from a contest into a game. Everyone talks about their being no practical use for social media in finance, let's find a way to make it work. 

A contest idea for everyone:

Give current members points for every new referral, and set up social media "leader boards" that shout out the results day-to-day for each of the promoters. You don't have to make it video game themed, per se, but you should make your grand prize (for your first person to ~10,000 points or whatever) worth the time it takes to send out the information. 

An idea just for promoters:

If 64% of your member base is willing to tell non-members how much they love you, why not pay them for their time? If you have a smart survey program, you can sort out who's a promoter and who's a detractor at your CU - so, why not give only those promoters a special "put up or shut up" offer that rewards their referrals? Maybe it's the above contest and you give some bonus points to those members. You have so much data available to you, if you're willing to work for it and work with it. 

Some possible drawbacks:

Is there a sticking point when it comes to ages? The older you are, the harder it is to convince you to move your money. I'm basing that on no other research than my own opinion, because I've had the same accounts at the same credit union for thirty-seven years. I'd have to be really peeved to move my checking. It affects direct deposits, ACH, bill pay - yes, you can go change all that if you've only had a banking relationship for a few months to a few years, but nearly four decades? I'm one of those people that actually cares about my credit union. You couldn't drag me away, no matter the prize. 

So, where's the "fix"? How do you truly reward members for bringing in profitable new members? How do you REALLY sweeten the deal for those people who have had a relationship with their prior bank for ages? 

Your thoughts and comments are always welcome.