Non-member Marketing Emphasis on the Rise, But Is It Enough?

By Jon Haller
Director of Corporate and Market Research
Credit Union National Association

Credit unions are spending more on their membership-growth efforts than in the past. This, according to CUNA's upcoming National Member Survey and Survey of Potential Members reports, scheduled for release in April.

Many would argue that the prevailing economic environment provides credit unions with a rare opportunity to take advantage of banks' tightening of credit access and negative media attention, to build their memberships. Benefiting from this situation, however, could quite possibly require that stronger levels of funding be assigned to their promotional, research, and membership growth activities than are currently being devoted to them.

Credit unions' marketing funds are being targeted on membership-growth activities more so today than in the past. One-third of credit unions' 2009 marketing budgets have been ear-marked for efforts to attract new members, including building brand awareness of their credit union and the related research (see figure). Moreover, this pattern surfaces fairly consistently across all credit unions with assets of $50 million or more.

Additionally, the present investment marks a jump from the 2005 share of marketing dollars devoted to these activities.

Clearly, there exist several challenges in today's financial marketplace and economic times. At the same time, though, there may be no better time than now to look for a few more dollars so you can benefit from a unique and perhaps-small-windowed opportunity to attract new members.

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