When asked to predict the key trends in credit union marketing for the year ahead, various experts narrowed in on key areas they expect to deliver the greatest results. Not surprisingly, digital ranked high on just about everyone’s list. Here are four of the areas expected to hold the greatest promise as detailed in a recent CU Times article.
1. The Continued Digital Shift
James Robert Lay, president of Texas-based CU Grow, predicts that the shift from traditional to digital advertising will continue in 2015. In fact, Lay suggests allocating at least one-third of credit union marketing budgets for digital endeavors. That’s a jump from the 25% average found in a recent Gartner survey.
Mark Arnold, of On the Mark Strategies, believes websites deserve a greater share of the digital investment. He notes that credit unions invest $2 million or more to open a new branch and consider it an asset. Yet they spend less than $20,000 for marketing on their website and call it an expense. Arnold is also a proponent of email. “Everything that I am reading is that people are still more likely to respond to email than any other type of promotion offer that you have,” says Arnold. “That’s because 91% of U.S. consumers still use email daily, and the rate at which emails prompt purchases is not only estimated to be at least three times that of social media, but the average order value is also 17% higher.”
2. Big Data
Using various databases, credit unions can now pull consumer information and apply predictive analytics to determine which products and services members are most likely to purchase. Alan Bergstrom, chief marketing officer for Community Choice Credit Union, expects that more credit unions will use this process in 2015. “While I worked at the CUNA Mutual Group, we were very quickly moving toward big data and predictive analytics to be able to fine tune and customize our messages,” Bergstrom explains.
A past Accenture survey indicates that he may be right. After polling more than 600 executives, the survey found that the use of predictive analytics increased from just 12% in 2009 to 33% in 2012.
3. Video Marketing
Big data isn’t the only prediction Bergstrom is making for the year. He sees video as another promising avenue for credit unions. “I think in 2015, we are going to see more credit union video content from a marketing perspective and from a brand-building perspective.”
By the end of 2013, more than 188 million Americans watched 52 billion videos. That number is expected to increase to upward of 201 million by 2017, according to visual content company, Invodo. So how should credit unions get their video content to stand out from the crowd? Bergstrom suggests the use of storymonials. “There is too much marketing sameness out there,” he says. “So bringing that relevance, that emotional nature of real members dealing with real issues that we all face, would be perfect to break through that clutter of marketing sameness.”
4. The Hispanic Market
Through an executive order recently initiated by President Obama, nearly 5 million of the 11 million undocumented immigrants would be allowed to continue living in the U.S. Whether or not you agree with the politics, this a big opportunity for credit unions. “These are acculturated, upwardly mobile, family-oriented, hard-working Latinos, which makes them a natural fit for credit unions,” says Lionel Sosa, founder of Sosa & Sosa Consultation & Design.
Hispanics need the same products as other Americans, Sosa explains, but the marketing messages should vary according to cultural hues. Many Hispanics maintain two distinct cultures. Credit unions must keep this in mind if they hope to earn and keep their business.
MDG Advertising, a full-service advertising agency with offices in Boca Raton and New York, NY, is one of Florida’s top credit union marketing companies, whose clients include IBM Southeast Employees’ Federal Credit Union. MDG’s capabilities include print advertising, direct mail marketing, branding, logo design, creative, media buying and planning, radio and TV advertising, digital marketing, website design and development, online video advertising, infographic development, display marketing and retargeting, mobile marketing, email marketing, content marketing, lead generation, online reputation management, social media marketing, and SEO. For the latest trends in advertising and branding, contact MDG Advertising today at 561-338-7797 or visit mdgadvertising.com.
Written by Michael Del Gigante