Should Credit Unions Focus on Member Acquisition or Attrition?

Credit unions targeting growth must balance member acquisition and attraction. Credit union marketing strategies work best when they operate on this principle. (In the long run, at least.)

Too many credit unions focus on member acquisition at the expense of attrition. Once they find a new member, they stop thinking about that member as a new lead. They miss opportunities to drive deeper engagement in new and existing members. There should be a seamless transition from acquisition-oriented marketing to upselling and cross-selling account types, credit cards, and other products and services.

Instead, those new members receive the same marketing treatment as members who’ve been around for years. The new member may want a credit card or help with retirement planning. Yet, if they’re not introduced to these services, they may not find them—or they might find a competitor’s offerings. That means they’ve already got one foot out the door…

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Updates in the Equifax Security Breach Settlement

You may remember the Equifax security breach in 2017. If you don’t, here’s a refresher:

In late 2017, Equifax announces a cybersecurity breach that jeopardized the personally identifiable information of nearly 150 million people. Names, social security numbers, birth dates, addresses, and identification were all compromised.

This week in July 2019, Equifax settled with the Federal Trade Commission (FTC) to resolve several investigations and a consumer class-action lawsuit. That settlement of $575–700 million contains a hefty consumer restitution fund to repay those affected by the breach.

This is to say that if your identity was compromised in the Equifax security breach, you’re entitled free credit monitoring or $125.

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CU-2’s Credit Union Data Analytics Provider Guide 2019

Credit Unions are at a unique crossroads. We are behind on a handful of key trends. We must balance our technological needs with our focus on service, growth, and profit. At the same time, we have outside factors impacting us including fintechs, compliance, IT security, and ever-changing regulations.

One advantage shared by credit unions is their access to data. Individually, they generate quite a bit of data. Collectively, they generate tremendous sums. Even with all of that, we remain behind woefully in leveraging our data.

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A Quick Guide to Credit Union Member Acquisition Costs

In a perfect world, the reputation of any given credit union would precede it, and people would flock from far and wide to join. Not a dime would be spent on marketing.

Unfortunately, it’s not a perfect world: kids are eating Tide Pods, Firefly was canceled after one season, and it costs money to attract new credit union members. Acquisition costs are real.

Any credit union growth strategy is going to rely on marketing to get the message out about their services. The real question is, how much does a new member cost? And, just as importantly, is it worth it?

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