If the internet quote is true, Confucius once said, “The man who chases two rabbits, catches neither.”
The same is true for the credit union that chases too many ideal members. You will catch none of them.
I didn’t have to go looking for national data to back up my theory. I only had to look at Your Marketing Co.’s list of credit union marketing and strategic planning clients. Our five credit unions with the most successful track record – member and loan growth along with ROA dating back to 2017 – all have focused on a very specific ideal member.
I’m often asked, “How are your credit union marketing clients achieving that success?”
One answer surfaces: Honing your ideal member. I’ve consolidated the copious list to five benefits I can share with you if your credit union is stuck and looking to grow.
- Targeted Marketing: By understanding and targeting a specific ideal member, you can tailor your marketing efforts to effectively reach and resonate with that particular person. You can craft messages, select appropriate delivery channels and develop relevant content that speaks directly to the needs and preferences of that ideal member. That content should identify a problem you know they are struggling with and present your unique solution, to the point that they think you are in their head. Targeted marketing increases the chances of attracting and engaging the right potential credit union members, resulting in higher conversion rates and improved return on investment for strategic marketing efforts.
- Customized Products and Services: Concentrating on an ideal member allows you to develop products and services that are specifically designed to meet their needs. By deeply understanding the pain points, desires, and preferences of an ideal member, you can utilize your credit union’s strategic planning efforts to create offerings that provide unique value and differentiation. This member-centric approach increases member satisfaction, builds loyalty and generates positive word-of-mouth referrals. (No more bribing members with $25 to refer their friends!)
- Efficient Resource Allocation: Focusing on a specific ideal member helps allocate resources more efficiently. Rather than trying to cater to a broad and diverse member base, you can now concentrate your efforts, time and resources on a narrower set of members. This allows for a more streamlined approach to product development, marketing campaigns, sales strategies and member support. By optimizing resource allocation, your credit union can achieve better cost management, improve operational efficiency and ultimately increase ROA.
- Competitive Advantage: Specializing in serving a specific ideal member will create a competitive advantage for your credit union. By deeply understanding the unique needs of these ideal members, a credit union can develop expertise, build relationships and create a reputation as a trusted provider within that specific niche. This will certainly make it harder for competitors to replicate the same level of focus and differentiation, giving your credit union a stronger position in the market.
- Better Relationships: Focusing on one ideal member allows your credit union to build deeper and more meaningful relationships within this niche. By understanding their needs, preferences and challenges, your credit union can now provide personalized experiences, proactive support and ongoing communication that resonates with these ideal members. Strong relationships lead to increased member loyalty, larger share of wallet and advocacy, which are essential for a healthy credit union that will last for decades more.
Trying to be everything to everyone can still work if your credit unions is more than $1 billion in assets. If your credit union is smaller than that, and you feel stuck, you need to draw your line in the sand and focus on a niche. If you need help doing that, let’s talk!