3 Marketing Tactics for Credit Unions to Win Over Millennials

Credit unions offer a better deal for Millennials than any other financial institution, but to win them over, your marketing must embody and convey those advantages.

Credit unions are doing worse with Millennials than any other generation, as this banking target market has flocked to fintech-driven mobile finance experiences that prioritize faceless convenience over the advantages of credit unions. But this disconnect is not the way it has to be.

Credit unions offer a better deal for Millennials than any other financial institution, but to win them over, your marketing must embody and convey those advantages.

The disconnect is a customer experience issue, but it’s not one that can be fixed by just improving customer service. You need to help these potential customers see what your brand represents throughout the lead generation process. If you amplify personalized direct mail with targeted digital marketing, you create an optichannel marketing experience that shows younger audiences you are both relevant to their world and able to deliver the individualized, convenient banking experience they’re looking for.

To attract digitally savvy, convenience-centric banking customers, credit unions must be able to deliver marketing that accomplishes three things at once:

  1. Convey a better customer experience
  2. Embrace technology and convenience
  3. Make a personal connection

1. Convey a Better Credit Union Customer Experience

This is the first taste these Millennials will have of your brand, so it’s important to show why it’s worth their time to bank with you. How does this marketing experience convey the things that will give them a great experience as customers? Is it relevant to what they’re interested in? Is it convenient? Is it personal?

Beyond the marketing experience, what aspects of the customer experience does it actually show? Does it showcase the mobile tools your credit union provides? Does it show how you make it easier for them to access funds and perform transactions? What other benefits do you offer? Do you integrate with their favorite fintech, like Venmo?

It’s the time to show why you’re the credit union that can help them live their active, technology-empowered lives and achieve their financial dreams. Make it clear why your institution is the financial hub Millennials should be choosing as the foundation to reach their goals.

2. Embrace Technology and Convenience

Mobile should not just feature in your customer experience, it must be an integral part of your marketing as well. Today brands can target individuals through data you already have about them or by building custom audiences on digital platforms. These ads must be targeted to social and mobile marketplaces, as well, to ensure that Millennials see your messaging where they live when they’re ready to engage with it.

Reaching out to your audience through mobile channels is only the beginning. The creative you send and the offers it presents must showcase mobile-enablement as well. These customers live on their phones, and you need to show them your credit union lives there, too.

3. Make a Personal Connection

Targeting and personalization go hand-in-hand. The data available today — both your first-party data and information vendors can provide — is a powerful tool for making marketing that connects. This goes beyond demographics. With the right data, you can target younger adults at times when they may be more open to changing banks or pursuing other financial products like car loans and mortgages.

Figure out what demographics and life events you want to engage with this campaign and design a direct mail campaign that addresses them and serves as your marketing catalyst. Then target that defined segment with complimentary marketing across the digital world.

Millennial Marketing Tech for Credit Unions

Credit unions have always marketed less than other financial institutions, especially through mass-market channels. Instead, the traditional credit union relied on word of mouth and brand reputation supported by local direct mail to build personal connections with its community customer base.

Those are all good tactics and credit unions should keep using them, but they aren’t enough. Today, a single direct mail campaign may be seen, but it’s too easily forgotten in the tide of advertising Millennials see all day. Not to mention, while Millennials have been shown to appreciate direct mail, this is not the demographic you want thinking that your brand is “old-school” — digital marketing and engagement channels are essential for getting and holding Millennials’ attention.

Just like your credit union isn’t their father’s financial institution, today’s optichannel marketing isn’t the direct marketing of 1990. With the data and tools available today, it’s possible to make a personal connection that sets your brand up for success with each customer you reach. Doing that in a way that embodies the customer experience your credit union provides is the key to winning Millennial bank accounts today.

The ‘Sustainability’ of Giving Back: How Marketers Look After Their Own

Sustainability in business is often referred to as “the triple bottom line”—financial, environmental and social. This past week, I had the opportunity to see firsthand how we—as marketers—address social sustainability, specifically our fostering of human resources and marketing talent. It is a critical need

Sustainability in business is often referred to as “the triple bottom line”—financial, environmental and social.

This past week, I had the opportunity to see firsthand how we—as marketers—address social sustainability, specifically our fostering of human resources and marketing talent. It is a critical need.

First, we had the Marketing EDGE Annual Awards Dinner. Nearly 250 marketing leaders gathered to honor two recipients for Marketing EDGE’s two most prestigious education leadership awards: Michael Becker, co-founder and managing partner North America, mCordis, as the 2014 Edward N. Mayer, Jr. Education Leadership Award honoree; and Google as the 2014 Corporate Leadership Award designate.

Many of the emcees of the evening, uniquely, were alumni of Marketing EDGE programs (Marketing EDGE engages thousands of students and professors every year). Altogether, the evening generated not only hundreds of thousands of dollars in scholarship monies, but also mini-testimonials from students and young professionals including one individual who confessed he almost became a Eurobond trader until he was engaged in a Marketing EDGE program. He described himself as an “accidental marketer.”

Think about the term, “accidental marketer.” Today’s generation of students and “market-ready” career entrants are increasingly marketing educated, and even direct and interactive marketing educated, armed with internships and professional experiences the moment they reach the marketplace. Marketing EDGE programs alone touched more than 5,000 students last year—and 6,000 are anticipated for 2015. Many are marketing majors, while others are in STEM fields, creative and other disciplines, but with exposure to marketing curricula and some marketing experience.

Compare that to 20—even 10—years ago. This business was built largely by “accidental marketers” who found a home in measurable, accountable direct, interactive and data-driven marketing, and found entrepreneurial opportunities in our field. We did OK, even spectacularly, but our successes have only made the appetite for top talent grow more ravenous. Thus, the more we “give” to marketing education today—in donated time and money, in adjunct teaching, in internships, and in involvement with colleges, universities and “bridges” such as Marketing EDGE—the better chance we have to attract the best and brightest to our field, and to our companies. Giving back pays immediate dividends. (Don’t forget #GivingTuesday is December 2!)

During the Direct Marketing Association 2014 Strategic Summit, we heard from a panel on what it takes to bring along “The Next Generation of Marketing Talent.” Representatives from IBM, Javelin Marketing Group, Marketing EDGE and University of Georgia talked about the need for flexibility, mentoring, culture and social responsibility as motivators to today’s students and career entrants. Young professionals crave guidance, and likewise to understand their role in the big picture of community (in marketing, the business overall, the end-user, the industry, the world). One might say these attributes motivate everyone, but they are particularly important to digital natives and Millennials who want to start their careers as contributors and difference makers. How much better to have these new and young professionals matched with mentors, by default or design, to bring clarity to such contributions.

Which brings me to a third event, the Direct Marketing Club of New York’s 30th Annual Silver Apples Gala, honoring seven individuals (Brian Fetherstonhaugh, chairman & chief executive officer, OgilvyOne Worldwide; Timothy Kennon, president & owner, McVicker & Higginbotham, Inc.; Pamela Maphis Larrick, CEO, Omnicom’s Javelin Marketing Group; Thomas “Tim” Litle, founder & chairman, Litle & Co.; Lon Mandel, president, SMS Marketing Services; Debbie Roth, vice president of sales, Japs-Olson Company; and Dawn Zier, president & chief executive officer, Nutrisystem; and one corporate honoree (Fosina Marketing Group) who have contributed a quarter century (or more) to the direct marketing discipline, through demonstrable professional success, and a giving of time and effort to promote the goals of DMCNY which incorporates education and to foster growth of the field.

All during the evening, honorees recalled having mentors, being mentors to others, and having the clarity of marketing goals and measurement to achieve marketing success. They also spoke of community—where ideas are freely explored and exchanged, the good, the bad and the not-so-pretty (testing and lifelong learning)—as being part of the key to not only professional success, but also a deep sense of personal and professional fulfillment.

We are a community—and one I’m thankful for everyday in my own accidental career. It’s always time to give back and mentor.

How Much Is Your Email List Worth?

Every good direct marketer knows the top company asset is the customer database. Almost anyone with marketing experience can turn that data into revenue. I say “almost” because there is still a social media movement trying to prove that direct mail and email marketing is dying. It’s doubtful that anyone in that group could create and execute an effective plan that delivers sales and profitability. But, for the rest of us, the people who understand that customer relationships are about the quality of service, a solid list is money in the bank

Every good direct marketer knows the top company asset is the customer database. Almost anyone with marketing experience can turn that data into revenue. I say “almost” because there is still a social media movement trying to prove that direct mail and email marketing is dying. It’s doubtful that anyone in that group could create and execute an effective plan that delivers sales and profitability. But, for the rest of us, the people who understand that customer relationships are about the quality of service, a solid list is money in the bank.

Direct mailers are very good at creating detailed plans that project sales and profitability down to the penny. When shifts in external factors like weather and politics affect sales, adjustments are made to keep the company operating in the black. Executing a direct marketing campaign requires a significant investment, making careful management necessary to corporate success. Customers and prospects are segmented, monitored and measured every possible way in an effort to increase lifespan and lifetime value.

Email Marketing Is Different
The investment required for email marketing is minimal when compared to direct mail. Returning a profit is so easy that marketers are lulled into complacency. When the revenue to cost ratio is that good, why invest additional resources in making it better? After all, there are always other areas that need more attention.

Email marketing can do so much more than generate revenue and profits. In the right hands, it increases customer loyalty and reduces operating costs. Emails offer the opportunity to create a personal connection that is unavailable in any other marketing channel. They can be used to economically provide high quality service on an individual level. Capitalizing on this requires in-depth analysis that begins with the value of email subscribers.

How Valuable Are Your Email Subscribers?
There is a direct relationship between the quality of your email marketing program and the value of your subscribers. Programs that build relationships using personalized promotions, education and service create substantially higher value subscribers than pure-play promotional campaigns. This really shouldn’t come as a surprise to anyone because better investments always yield stronger returns.

The first step in creating high value subscribers is analysis. How do the customers and prospects that participate in your email program differ from the ones who don’t?

Compare purchase history, time from first entry to purchase, times between purchases, average order, lifetime value, lifespan, number of orders in specific time frames and any other valuation information available. Segment customers and prospects as needed so you will be able to consistently evaluate the results. Seasonal, discount, and hit-and-run shoppers significantly skew the results. The information accumulated here is the benchmark that will be used to gauge the effectiveness of new campaigns.

Next, catalog all of the emails sent to each segment over the last two years. Include all available results so new emails can be compared to historical data. If you haven’t been segmenting subscribers, or segmented them a different way, capture the information that is available and move on. Don’t waste resources trying to analyze something that doesn’t have enough data to provide clear results. When finished, you’ll have a good idea of the current value of your email subscribers.

Creating a New Email Marketing Program
The analysis you’ve done tells you what has happened in the past. If you are happy with the results, keep on doing the same things. But, if you want more:

  • Look for gaps in your email marketing campaigns. Do they include personalized emails? Are the transactional emails optimized? Are you sending educational emails that teach subscribers how to use products and services?
  • Are you emailing often enough? Test sending emails more often to a sample of your subscriber list. If response increases without a significant jump in opt outs and spam reports, roll it out. Well targeted emails that provide value to recipients are rarely rejected.
  • Use your email marketing to improve customer relationships. Invest time in understanding your customers’ problems and creating solutions. The more problems you solve, the less likely they will leave. Email is an excellent tool for creating unbreakable bonds because it is effective, efficient and economical.
  • Measure everything on a regular basis. The better your data, the easier it is to improve results. Consistently digging through the data provides insight into how your subscribers behave. The more you know about their tendencies, the easier it becomes to create campaigns that motivate them.