Fractured image. Increased fees. Tightened loan standards.Consolidation.
Given all that's happening in banking today, consumers arere-evaluating their banking relationships at an unprecedented rate.Although credit unions are not immune from the financial malaise,we are definitely better positioned than our for-profitcounterparts to take advantage of this money in motion.
From a marketing perspective, the banking news coverage of the lastyear or so has helped to break down several barriers that creditunions traditionally had to overcome. As credit unions, we mustconjure at least four hurdles before we even reach the startingline of our bank competitor's marketing efforts. We must first dealwith the questions:
What is a credit union?
Why should I care?
Can I bank there? or What is this membership thing?
What is a share and share draft?
Once a credit union has cleared these barriers, then it can beginto sell the credit union and its products.
Rule No. 1 of marketing is to speak to costumers in their voice,with benefits that matter to them.
That said, our not-for-profit difference message has largely beenfalling on deaf ears for years. To the consumer, not-for-profithasn't been a benefit, it's seen as an organizationalstructure.
Now, however, in the wake of corporate bail outs, TARP andelaborate corporate travel and bonuses, the word profit is a dirtyword and bank is a four-letter word. For the first time, possiblysince the beginning of the credit union movement, the prospectivemember is primed to care
about a not-for-profit financial institution. Suddenly,not-for-profit can be a powerful phrase and quickly clear many ofthe hurdles discussed
earlier.
Not-for-profit is a great differentiator, but it is still simply anorganizational structure. Communicate the credit union differenceas a consumer benefit. Roll out the red carpet because the memberis the owner.
The bottom line is to get in touch with what your marketneeds.
By making a few simple clicks on the Internet or a few calls toyour city or county governments, you can quickly assess the localeconomic environment. Also, try calling a local college economicsdepartment for local data.
Are jobs growing or shrinking today in each of your markets? Whatwill they be doing in the next six to nine months? What businessesare doing what? Use this information to target your businessdevelopment strategies.
What are the overall local economic trends? Look at real estate,household income, employment and retail sales.
How does all of the above information drive product need? Are therespecific products that you can focus on in 2010? Do you need tocreate new products or services?
For your existing customers, remember that it costs far less toincrease penetration with them than to acquire new ones. There isstill money in motion with your existing customers. Use thisopportunity to acquire their other banking relationships.
How are your current customers using your products and services?Look at services per household, checking penetration, loanpenetration, available lines of credit, debit card usage and onlinebanking usage.
Identify your most profitable customers and target those who lookjust like them.
Take a look at your competition. You can hire an outside shopper orsimply take a day or two and shop the competition yourself. It'simportant to understand what new competition has entered the areaas well as who has left. Review your key competition's product mix.How are they packaging their products? Do they have relationshippricing? Are they bundling products?
Make a list of all of your competition's advantages anddisadvantages. Use this to differentiate yourself.
By truly understanding and reporting your marketing ROI, you canbrand yourself and your department as the greatest profit center inthe credit union. Set measureable ROI goals for each promotion aswell as overall annual goals. Track your ROI regularly-not just atthe end-this will help you know if you need to deviate from theplan. Look at everything: fee income, product profitability, brandequity and more. Become your greatest spokesperson. Reporteverything, even the tactics that didn't meet expectations andshare what was learned. If your credit union has one dollar tospend, prove that the highest return on investment is throughmarketing.
Your 2010 marketing plan will be one of the most important plansthat your credit union has written in decades. It is the creditunions who allocate the appropriate resources and who use thoseresources the wisest that will capture a significant portion of themoney in motion.

Eric Gagliano is senior vice president for MarketMatch. He canbe reached at 866-501-2233, ext. 106 or EGagliano@Market
Match.com