2013 Watch: Marketing in the Year Ahead
Mobile banking, onboarding and gamification may be some of the buzzwords marketing professionals in the credit union industry are using throughout 2013.
Marketing veteran Drew McLelland said if mobile banking wasn’t your top priority in 2012, it better be for 2013.
“This isn’t optional for financial institutions that want to be in business in 2020,” said McLelland. “It’s really that simple.”
And in marketing, not too many things are that simple.
Michael Kelly, president/CEO of PSCU Financial Services, couldn’t agree more.
“The future of credit unions rests in the ability to offer current mobile tools and technologies to members,” Kelly wrote in an opinion column posted at cutimes.com. “This is why we are focused on our role to develop and deliver new technologies that equip credit unions to effectively compete with major banks and non-traditional players like Google and Apple.”
More 2013 Watch
- Dec. 27, 2012 Gen Y in the Year Ahead
- Dec. 27, 2012 Member Investments in the Year Ahead
- Dec. 26, 2012 Member Business Lending in the Year Ahead
- Dec. 26, 2012 Human Resources in the Year Ahead
- Dec. 21, 2012 Credit Union Taxation in the Year Ahead
- Dec. 20, 2012 CUSOs in the Year Ahead
- Dec. 20, 2012 NCUA Board in the Year Ahead
- Dec. 19, 2012 Cards in the Year Ahead
- Dec. 19, 2012 Mortgage Lending in the Year Ahead
- Dec. 18, 2012 Low Income Service in the Year Ahead
- Dec. 18, 2012 Bank Conversions in the Year Ahead
- Dec. 17, 2012 Student Lending in the Year Ahead
- Dec. 17, 2012 Auto Lending in the Year Ahead
Mobile banking is quickly becoming a deal breaker for consumers and credit unions, said Kelly.
It appears the credit union industry is embracing mobile banking not just as a cool new technology toy, but more importantly, as a new marketing opportunity to reach members more frequently. A recent report from the CUNA Marketing & Business Development and Technology Councils, found that consumers who use online financial services interact with their financial institutions more than 10 times a month. But when mobile access is added, users interact with their financial institutions 19 times a month, which gives credit union marketers more opportunities to cross-sell products and services to members.
The CUNA report said it is more important than ever for credit union marketing professionals to work closely with business development and information technology departments to develop strategies for mobile banking because consumer demand for this service is expected to keep growing.
Just as they did in 2012, credit unions are expected to continue their cross-selling efforts in 2013 that will help them keep those members gained from Bank Transfer Day for a long time.
The $91 million Northwest Resource Federal Credit Union in Portland, Ore., for example, saw its cross-sell figures increase from 1.87% to 2.37% and new members continued to add additional products over time.
These cross-sell opportunities are likely to continue next year. According to a Javelin Strategy and Research Report released in June 2012, 11% of consumers say they are likely or very likely switch financial institutions over the next 12 months. Among big banks like Bank of America and Citibank, 21% and 25%, of their customers, respectively, plan to find a new financial institution next year. This means credit unions have the opportunity to attract new members and create a very positive onboarding experience that will motivate them to make the credit union their primary financial institution.
Meanwhile, gaming is no longer for kids or adults who refuse to grow up. Leveraging gaming, or gamification, may be coming to credit unions sooner than you think. The Filene Research Institute came out with a report in July that suggested credit unions could leverage electronic games to help people adopt better financial behaviors.
Why? Because it’s fun.
Moreover, some credit unions are starting to use gamification as a marketing tool to attract new customers.
In September, the $1.8 billion Grow Financial Federal Credit Union showcased its new virtual money machine in Tampa, Fla., which makes it look like real money is floating down like manna from heaven. The money machine is an augmented reality, motion reactive video mirror that projects images on a six-screen HD video wall.
In simpler terms, augmented reality, AG technology, is something akin to a large electronic billboard with touch screens and motion reactive video, or sophisticated gesture-based technology, which enables pedestrians to interact with what they are looking at such as graphics, images or video of dollars falling from the sky that are projected on a HD wall. AG technology apps also are available for smartphones and tablets.