Many credit unions have a field of membership that includes associations that often anyone can join. Up until recently, it was possible for credit unions to broaden their FOM requirements to gain access to more members. But on April 30, the NCUA Board released new rules that limit the ways some federal credit unions can become "all access."
As a communications professional working with credit union clients, the most pressing consideration isn't whether state-chartered credit unions should follow federal regulations, whether large credit unions that function like banks should still receive tax breaks, or whether something is fair or unfair.
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What's most intriguing is the invitation for all credit unions and their marketing teams to take a big step back and consider how they can better define their target audience. This can help ensure everyone is moving in line with the credit union's larger goals and objectives.
A well-defined target audience can help credit unions enhance their marketing strategies and efforts. To apply a little Target Marketing 101, across industries a market (generally) can be segmented in two ways: Geographical – serving the needs of those in a particular geographical area; and member – identifying those most likely to want your product, and targeting those groups.
By concentrating efforts on one or a few key market segments, a credit union will reap the most benefits. The new NCUA rules encourage credit unions to cast a net toward defined member groups to hone in on those groups for better results – and to bolster your reputation among them.
Building Relationships
The NCUA defines the first rule of credit union marketing as "know your members." For example, a credit union that caters to alumni with a variety of philanthropic events can create more personal marketing campaigns at homecoming events than a credit union that allows anyone to join for a $5 investment.
Additionally, a credit union must also know its potential members. Narrowing the field of membership helps a credit union go deeper into understanding its community in order to engage them more directly. By "speaking their language" and zoning in, a credit union can more likely develop an effective marketing campaign and steer clear of one focused too broadly.
The A-List
The new rules list 12 association types whose "regular members" can receive an automatic pre-approval from the NCUA for federal credit union membership. These include: Alumni associations; religious organizations, including churches or groups of related churches; electric cooperatives; homeowner associations; labor unions; scouting groups; parent teacher associations organized at the local level to serve a single school district; chamber of commerce groups (members only and not employees of members); athletic booster clubs whose members have voting rights; fraternal organizations or civic groups with a mission of community service whose members have voting rights; organizations having a mission based on preserving or furthering the culture of a particular national or ethnic origin; and organizations promoting social interaction or educational initiatives among persons sharing a common occupational profession.
In addition, the "NCUA may impose a geographic limitation if it is determined that the applicant credit union does not have the ability to serve a larger group or there are other operational concerns." So, along with target marketing to particular customers, a credit union may find geographical marketing useful as well.
Once you have determined the target audience, developing a marketing strategy that will generate leads for loans and new accounts can become more structured. Then, it can be helpful to decode your target audience, which can be a bit more mysterious. It starts with casting a targeted net to the prospective members you would like to attract, instead of trying to catch everyone.
The text of the new rules is available at NCUA.gov.
Casey Boggs is president of LT Public Relations. He can be reached at 503-477-9215 or [email protected].
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