Insane Growth At Credit Unions Could Be A Killer

One thing I am always open to is admitting when I am wrong. As I’ve gotten older and matured as a leader, I’ve had to look back at things I’ve said and re-think them. There have been many times as a youthful leader I started a sentence with “I’ll never…” and found myself eating those words. Most of the time, it’s not because I was wrong per se, but because as I’ve invested in myself through reading, working with coaches, and personal growth, I’ve had to change my mind on certain things. What worked for me 10 years ago doesn’t necessarily work for me now. One of those things I’ve had to change my mind about I want to share with you today. It’s the concept of “growth.” WE NEED TO GROW! Your credit union needs to grow! “Growth” is a loaded word that can have many meanings. For example, “you need to grow as a person.” Without context, that could very well be a recommendation to gain weight. Jeff Siegler explores this thought in a recent article on this very subject as he explores the “growth” of cities from a planning perspective. “Eating garbage food and being sedentary is the easiest path for a person to grow, but we all know that such growth is quite unhealthy. We don’t need to be fitness experts to understand that this behavior would have seriously negative impacts on the health of an individual. Simultaneously, a person could increase their weight by strength training and eating a higher protein diet. Muscle increases are shown to increase metabolism, bone density and lead to an overall higher quality of life. A person could grow fatter or more muscular, but we would never equate the two as being the same.” As the chairman of the planning commission for my city, in hopes that we will “grow” I’ve had to take a hard look at the meaning of growth. I realized our city does not need to grow big. We don’t need to grow for growth’s sake. In fact, I’ve embraced our word of the year at YMC and replaced the word growth with “vibrancy.” Siegler shared these wise words on “growth” that, while meant for city planning, applies directly to the growth strategies we often consider as credit unions: “Not all growth is good, and far from it. Quality is the crucial component to consider, because, just like a person, a community can expand without ever improving. In fact, when a city or town grows without giving credence to quality, they are most likely declining. Paving new roads does not make a community better, increasing the number of national chains does not make a community better, building more auto-centric vinyl subdivisions does not make a community better. Yet, these are all economic development policies that most places adhere to. These are growth strategies, not improvement strategies, and blindly adhering to growth policies is insane.” Membership growth or asset growth alone for a credit union doesn’t mean quality. Adding a new mobile app does not make a credit union better. Building a new branch does not make a credit union better. It could be a good growth strategy, but it doesn’t mean an improvement strategy. Growth and improvement must go hand in hand if you don’t want an endless cycle of courting a new member only to have them roll off the books and close their account within a short period of time. Let me share these words again: “Blindly adhering to growth policies is insane.” What does this mean? Perhaps your strategic planning session this year needs a fresh look. Perhaps the strategies you are implementing need to be discussed and questioned. Perhaps the tactics of those strategies should also be reviewed. If you need a fresh voice, we have facilitated many strategic planning sessions for credit unions who have found themselves stuck, and we can help you too. Ready? You’re just one email away from getting unstuck and seeing a more vibrant credit union!

What Is Holding Your Credit Union Back From Growth?

FEAR! Wait, I know if you’ve read my articles before, you’re likely thinking, “NOT AGAIN!” Stick with me. I want to take a deeper dive into this thing called “fear” and provide some resources that can help you or your team get unstuck and push past the fear. First, fear in the credit union leadership office or boardroom doesn’t usually look like fear. It usually comes in the form of a new, uncomfortable idea. In a recent credit union strategic planning session with Riverfront Federal Credit Union, CEO Tim McLeod shared how many peers will ask about some of the innovative strategies and technologies his credit union has adopted over the last year, then is met with comments like, “We could never do that,” or “That is too expensive!” Hold your horses! Those comments are made with zero perspective on what it took to bring that new strategy to life or how much that new technology cost. Their limited mindset instantly goes to “new technology = too expensive.” It’s not just Riverfront getting met with these comments. Time and time again, I’ll see our best practice credit union clients who see long-term success prodded by peers about what they are doing, and then met with comments like, “I don’t know how NCUA is letting you get away with that,” or “Gosh, that’s too expensive.” Those comments are nothing but fear, and fear is a lack of perspective. How the team at Riverfront and many of our other best practice credit union marketing clients gain perspective is by removing fear and making good decisions. Let’s put it this way: Most things we fear are rooted in similar ignorance (or nicely put, lack of data or perspective). If you don’t know what a tornado is or what’s behind an earthquake, it may well seem like the wrath of an angry or vengeful god. But, if you step back and learn about atmospheric pressure or tectonic plates, it’s not quite as scary. You have facts and understand what the true nature of these events. Of course, it can still hurt you, but you’ll be both better prepared and less likely to take it personally. A recent passage from Daily Stoic summed it up nicely: “We are afraid of what we don’t understand. We are vulnerable to what we can’t grasp. This is why science and history and good ole’ personal experience are so essential. They make us wiser but also braver. Because now we know, and once we know, then we can know what to do. We can know how to prepare.” Implementing AI at your credit union isn’t as scary when you dig deeper to understand how it works and how others are using it. Technology may not be as “expensive” as you think, especially if you look at the impact it could have on growing your credit union. If you need help gaining some perspective and getting unstuck to move your credit union closer to its goals, we can help. Over the last 15-plus years, I have helped hundreds of credit unions find opportunities and implement marketing strategies that led to growth and created a positive impact for their members and their community. My team can do that for you, too.

Why Are Members Closing Accounts and Leaving Your Credit Union?

“Some of them are just passing away!” I’m a marketer, not a doctor, so I can’t help with that. “68% of consumers leave a business relationship because of a perceived attitude of indifference.” I’m a marketer; I may be able to help with that. But let’s dive deeper into this statement and follow my golden rule of “asking a freaking question.” What causes that indifference, and what needs to change within your credit union to build a lasting relationship? But… we love our members! We have good rates and good service! Whatever message or reason that new member joined the credit union was enough to earn their business, but what are you doing to keep that business? Actions speak louder than words. What I find is that the mindset of most credit union leaders is acquisition. Grow members. Get them in the door! When we say mission accomplished, we rinse, wash, repeat, and turn a blind eye to that new member and focus on the next new member. Diving deeper into that 68%, the indifference comes from the attitude of the credit union employees. This could be the CEO at the top whose goal is to grow members, or the teller who believes their only job is to handle that transaction in front of them and move on to the next. So, what can you do about this? I’m only going to scratch the surface with these ideas: Rather than a constant churn of members to prop up your credit union membership goals, what if we could retain 68% more of our members by showing them some love? Need help? For over 15 years we have used our time-tested credit union marketing strategies and tactics to help credit unions grow by engaging, educating, and retaining the next generation of credit union members. We can help you too.

Hustle and Bustle = Performance that is lackluster

I’ve seen two extremes in my fifteen plus years in the credit union movement. I’ve seen credit union leaders so paralyzed by fear of change that their credit union dies on the vine. It’s like walking into granny’s house, a house that has not changed in years. (That yellow corded rotary phone is still on the wall and the 1988 phone book is still in the cabinet underneath.) I talk a lot about fear of change in this blog because it’s a common occurrence. I’ve also seen credit union so afraid of failing that they hustle and bustle and grasp on to every new idea, half-heartedly implement it just to go live, and then move on to the next big thing, often forgetting that this “thing” they just implemented still exists in six weeks. One project down, three more added to the list. It’s mass chaos and the team doesn’t know which end is up. The KPI is whatever is urgent this week and the focus is whatever fire is burning currently. The strategy sounds more like an ad for shoes: “Just Do It.” The ancient philosopher Seneca said “For love of bustle is not industry, it is only the restlessness of a hunted mind.” But he also said this: “True repose does not consist in condemning all motion as merely vexation. That kind of repose is slackness and inertia.” So, which is it? Both. A heathy mix of where you land right on the middle. Matthew McConaughey was a guest on a podcast and talked about this very issue. “I had five proverbial campfires on my desk,” he said. He had a production company, a music label, a foundation, his acting career, and his family. He realized he was doing too much. Way too much. He called his lawyer and shut down the production company and the music label. “I was left with the three things that were most important to me. And those three campfires turned into bonfires. I majored in my majors. I got rid of two minors that I was trying to major in. I had been making C’s in everything, but when I got rid of five classes and concentrated on the three I really wanted, I started making A’s.” There is a lesson for each one of us in McConaughey’s decision. Sometimes we don’t need more time in our day, we need more focus on the things that really matter. As we add “things” to our list (products, services, strategies, tasks, etc) we need to remove things from that list as well. In conducting hundreds of credit union strategic planning sessions over the last 15 plus years I see so much excitement for the new, yet so much fear for killing off the things that no longer serve us (or our teams, or more importantly our members well.) If you constantly find yourself saying “I just don’t have enough time in my day” it may be time to focus. If you find yourself stuck with no membership growth at your credit union you may be trying to offer too many things to too many people with no focus on serving your ideal member well. Maybe it’s time for a strategic reset to get unstuck. We can help. “The more things you try to do, the less adequately you do all of them, and the more vulnerable you make yourself to the consequences of mediocrity, inadequacy, and failure.” – Ryan Holliday

Ethics in Credit Union Marketing

Always be learning. The moment we think we know it all is the minute we know nothing. Recently, I had the opportunity to attend an event in Atlanta for the marketing agency industry and got grounded back into our “why” at YMC with some timely reminders. I furiously jotted notes to share with my team, but the more I reviewed my notes, the more I wanted to share some of these with you. If you have a credit union marketing firm you work with, or are contemplating working with a credit union marketing firm, these will serve as some good reminders on getting the most out of the relationship you are investing in. A marketing industry expert (and host of the conference I attended) summed up the role of a strategic marketing firm this way: “What I most admire about you, as an advisor, is that you have nothing tactile to hand over to the client—it’s just you, standing naked in front of the room, carefully assessing, solving, and then speaking into that confusion. At its core, creativity is simplifying things; first, seeing the patterns, and then making the simple but courageous recommendation. And then applying the principles of change management to bring it to life with as little disruption as possible.” He also shared some of the governing ethical principles marketing firms should adhere to in serving their clients well. While this was nothing new for me (but still good reminders), I feel these are principles any client of a marketing firm should also be aware of. Your credit union deserves an ethical approach to credit union marketing. Your marketing firm should be more than an advertising firm, it should be a trusted advisor that speaks the truth and pushes you out of your comfort zone. That’s why we are hired, and that’s what our clients need. Otherwise, you could just do it yourself. If you’re struggling to meet the goals of your credit union, why not give us a shot? For over 15 years, we have been using a successful, time-tested approach to helping credit unions get unstuck and achieve amazing results. Just reach out, and we’ll pencil in a fact finding meeting to see if we can help you too.

Ditch Your SWOT and Replace it With This

Tradition says that strategy starts with your SWOT analysis. What are the Strengths, Weaknesses, Opportunities, and Threats to your credit union strategy? The longer you have used the SWOT analysis as the basis for your credit union strategic plan, the less helpful it will be to building your strategy as most SWOT analyses don’t change much from year to year. A little history before I share my recommendation. SWOT dates back to the late 1960’s and was developed by Albert Humphrey of the Stanford Research Institute. It usually consists of a long list of items without a hierarchy of import, and, worse, without validation from external data. Some observations and opinions may very well be valid, but it is usually driven by the loudest voice in the room. So, what should you replace SWOT with at your next credit union strategic planning session? Some credit union strategic planning facilitators live and die by SWOT. They are neither wrong nor right. I simply believe that, to have a healthy conversation and build a strong strategy for your credit union, you need to remove emotion and cognitive bias from the equation and focus on facts and vision. If your traditional SWOT analysis isn’t working for your credit union strategic planning anymore, I have a time-tested strategic planning formula that has worked for many credit unions over the last 15 years, and can help yours too.

What do you need most from your credit union marketing team?

Do you need pretty things, or do you need to meet your goals? In essence, do you need thinkers or doers? Do you need strategy or execution? Or do you need both? You need strategic thinking to pair with your leadership team, to understand your goals, and to know the tools needed to reach them. If you’re a small or midsize credit union, you probably also need your agency to execute those strategies for you. Finding one credit union marketing firm that does both well can be tough. But that’s exactly what we do at YMC. I consider YMC a “strategy first” team. That means: But that doesn’t mean we don’t understand the necessity of following through to put those ideas into action to get results. YMC is made up of credit union marketing experts including copywriters, email strategists, social media strategists, designers, and more. We even recently launched an offering of credit union training to help our client’s front-line team members connect the dots from strategy to execution on their end. Credit union marketing strategy is why our clients hire us. We thrive on helping our credit union marketing clients educate, engage, and retain the next generation of credit union members.

Throat Punch! What’s Yours?

“What is the throat punch?” That is the first question I always ask my team as we’re working on a creative brief for a client. First, you’re likely wondering, “What in the world is a throat punch?” A throat punch is the opening line of your message that instantly grabs the attention of whoever you are trying to reach. “XYZ Credit Union is a not-for-profit financial institution open to those who—” ZZZ… This is not a throat punch, it’s a dose of NyQuil™. But hear me on this: A throat punch is not clickbait either. A throat punch should deliver a stat or ask a question that resonates with your ideal member. (That’s why I’m constantly preaching to identify who your ideal member is!) Here are two examples of a throat punch: If you’re selling products for feet to people over 50, you’ve identified and commiserated with their problem, or you’ve immediately caught their attention with a solution. Here are a few more examples: (Note! Number 3 is not my favorite, as it takes some time to decipher, but it can work in certain situations.) Also, beware: Stay away from product-pushing and adspeak. (Also referred to as “corporate bullshittery,” as defined in a previous blog.) Don’t try to speak to everyone. Speak to your ideal member to empathize with their problem and provide your solution. Do you need help defining your ideal member or crafting your credit union’s throat punch? We’ve been the credit union marketing partner for hundreds of credit unions over the last 15-plus years. We can help you, too.

Why your credit union marketing strategy is failing – or is It?

Oh, the frustration! An increased budget. An innovative strategy. Hopeful execution. And then… nothing. Sometimes, it results in denial, and other times, it results in doubling down on the failing strategy, hoping a little more elbow grease will make an impact. I see this often with credit union leaders who reach out about their marketing. It’s just not working! And yes, sometimes we even see this with our clients. After 15 years of perspective, I’ve found three common reasons for a failed marketing strategy. Perhaps one or all of these sound familiar to you? 1.     Watching paint and boiling water. “Where are the new members?” “Where are the new loans?” Wait, this thing just launched two days ago! Much like you wouldn’t plant a seed and pull it up every few days to check the roots, you shouldn’t do that with your marketing. You implement an excellent credit union marketing strategy, and in no time, the post-mortems begin. You start tinkering with strategy (pulling up that seed to check the root), and then it becomes a certainty that nothing will grow. Sometimes, we DO get it wrong and need to fail fast and fail cheaply, but if you’ve done your homework, have a sound strategy, and are starting to see results, leave well enough alone. Wouldn’t you rather “fail” for six weeks and see success over the course of the year? 2.     Right strategy. Wrong tactics. As mentioned above, strategy should be rooted in good, strong data. Perhaps your strategy is sound, but your tactics need to be revisited. Think back to 2011 when Netflix bungled its pricing change. Research analysts calculated that Netflix could have lost up to 30% of its recurring income because of the way it tried to split up its subscriber plans between DVD rentals and streaming downloads. Splitting the physical DVD rental business from the streaming download market made a lot of sense. The problem wasn’t with the strategy but with the not-so-well-thought-out tactics used (which, yes, the company did fix.) 3.     The dogs don’t like the taste of your dog food. What?!? We’re a credit union! What does dog food have to do with anything? Stick with me. There’s an old story about a dog food company where sales were down, profits were down, income was down, and the people were down because of that. Marketing experts were called in. Every facet of marketing was considered and reworked. Packaging. Distribution. Ads. Then, nothing. Sales were still down. Because the problem was related to sales, they hired some sales trainers. The top sales trainers from across the nation were hired and paid big bucks to train the sales force in advanced sales strategies. At one of these sales meetings, a junior salesman raised his hand. The expert sales trainer called on him. “I know why sales are down.” “You?” questioned the sales trainer. “You know why sales are down?” “Yes. I know why sales are down.” “We have had the top consultants in the country working on this, and they couldn’t figure it out, and you, Junior John, know why sales are down.” “Yes, I know why sales are down.” “Well, tell us then! Why are sales down? Enlighten us!” “Dogs don’t like it.” “What?” “Dogs don’t like it.” “Excuse me? What do you mean dogs don’t like it?” “Dogs don’t like it.” “We have had some of the top scientists in the world developing this dog food formula. How can you criticize our dog food?” “Dogs don’t like it.” Why do your credit union marketing efforts seem to fall short? In our onboarding process with a new marketing client, we often find the real reason for stunted growth: Loan apps are clunky. Response times are too slow. Offerings are not relevant. The list can go on. Out of the many reasons your marketing may not be working, a common one is that members simply don’t like what you have to offer. For more than 15 years, we’ve been using a time-tested process to walk clients through achieving next-level growth opportunities before spending even one cent on marketing. Perhaps we can help you, too? If the answer is yes, let’s talk!

Our Credit Unions Aced 2023

Loan demand was strong last year. Deposits were elusive. But that’s not news to you. That was the overall story for most credit unions in 2023. For more than 10 years, we have collected and compiled quarterly call report data from our clients to look for trends and anticipate strategic shifts needed to remain competitive. Reviewing the data for last year, I’m not sure I could be more proud of what they’ve accomplished for their credit unions and their members. Here is what I found: 1. Loan demand was strong in 2023, averaging 8.86% for all YMC clients. That was down from 16.09% growth in 2022. With liquidity tightening and loan-to-share ratios on the rise, loan demand didn’t decrease in 2023; however, the ability to lend did. One positive trend among several clients was decreasing dependence on indirect lending and increasing focus on serving ideal members. That drove share-of-wallet up as well as yield on loans. 2. Our top five credit unions for loan growth ranged from 14.5% all the way up to 37.19%. The commonality among these five was their risk appetite. To ensure they manage risk appropriately, some of those credit unions work with TCT Risk to maintain safety barriers and ensure proper pricing for their loan portfolios. 3. Membership growth in 2023 was more robust than in 2022. Each quarter saw membership increase across all our clients, with Q4 being the highlight of the year. Our top five credit unions for membership growth ranged from 4.29% to more than 17%. These five diligently focused on educating and engaging with their respective ideal member. 4. Q4 2023 experienced the 11th straight increase in net worth among our credit unions as they continue to rebuild their strength after the COVID-19 crisis. Overall, 2023 was a spectacular year for Your Marketing Co. clients when it came to growth. Despite liquidity challenges, our clients were able to continue lending and serving their members well. Adjustments in our digital strategy and six-figure investments in technology upgrades and new software allowed us to gain deeper perspectives on our clients’ ideal members and reach them more effectively. We fulfilled our mission to help credit unions avoid unnecessary mergers by educating, engaging, and retaining the next generation of credit union members, and that remains our focus in 2024. Is your credit union ready to ace 2024? Contact Bo at Your Marketing Co. today!