Now Is the Time for Credit Unions to Amp Up Marketing Efforts

From groceries and gas for consumers to health care premiums and hiring freezes for employers, it’s clear that belt-tightening is happening throughout the U.S. economy.

Between labor shortages and interest rate hikes, financial experts are closely watching the economy for signs of recession. Add to that the Great Resignation, a movement of workers leaving their jobs because they feel underpaid, overworked or unappreciated, and those factors are putting businesses in the position of raising costs to attract, train and retain their staff.

Consumers, meanwhile, are slowly eliminating non-essential purchases. In fact, there are only two other times in recent history when this many Americans have considered lowering their living standards – and both of those were during particularly harsh recessions, according to the University of Michigan Survey of Consumers.

So, what does that mean for credit unions? Perhaps ironically, the answer is adding to your marketing budget.

For many, marketing is a line item that typically only gets a boost in good times. But that approach misses the mark: Economic slowdowns are when you need to fight even harder for your customer’s attention.

Despite the recent upheaval, now is the time for credit unions to leverage marketing strategies that reach and educate their members on options that won’t only help fight inflation and interest rate hikes, but also recession-proof their finances.

There are a few approaches that can be used to do this, beginning with targeted marketing strategies. This approach aims to connect your credit union with different types of members. By doing so, you can educate them on interest rate hikes and the products you offer that would best help them right now. Consider this: Consumers with an adjustable-rate mortgage would benefit from refinancing to a lower rate now, before interest rates rise even higher. Reaching specifically out to them, rather than those with an existing fixed-rate mortgage, would benefit the credit union.

Another approach would be marketing directly to millennials. This group of 20- and 30-somethings have specific needs. Many of them, particularly with the current robust housing market, are trying to purchase their first or second home. Use this opportunity to provide education on rising interest rates and their mortgage options. Also, consider the financial history of millennials. They will recall the Great Recession and might be particularly sensitive to wanting to avoid financial hardships again. Expect them to be receptive to education about recession-proofing their finances and provide plenty of information about that.

Finally, credit unions can maximize their marketing strategies during this time by using the data they have on hand to drive their marketing plan. Identify which of your products are getting first-time members in the door, and which services they progress to from there. You can create a marketing journey for your members with this information, telling you where and how to focus your marketing efforts.

For now, and while economic unrest continues, credit unions will be well-served by marketing plans that dial in on consumer education, prudent financial decisions and advice for dealing with rising interest rates.

Credit unions that lack an in-house marketing staff due to staffing shortages – not to mention the increasingly complex communication needs in today’s changing social climate – should consider outsourcing this key area to a marketing agency to take advantage of this prime time to market services. It’s also a great way to find unique approaches in connecting with both new and existing clients.

The temptation to pull back on marketing expenditures during lean times is strong, but it’s the opposite of what will benefit a credit union in the long run. Be the resource your members need during economic uncertainty, using targeted efforts to communicate the right information, at the right time, to the right audience.

Consumers count on their credit unions for reliable information to make informed decisions. Make sure you’re offering that – in good times and bad.

Catherine Povalitis is Vice President at Chartwell Agency, a Rockford, Ill.-based marketing and PR agency that works with credit unions and financial organizations throughout the U.S.