Credit Union Marketing Budgets On the Rise

Credit unions, as a whole, have recognized the growing competition for their members' business and consumers' waning loyalties, and bumped up their marketing budgets to better reach and serve their members and potential members.

Credit unions that have marketing budgets devoted about $50,000 (excluding staff salaries and benefits), on average, to marketing their products and services -- up nearly $10,000, or about 25%, from two years earlier, according to Credit Union Executive Journal's recently released Marketing by the Numbers survey report.

As might be expected, the average funding levels dedicated to the credit union's marketing efforts increase noticeably as asset size increases -- from a low of $7,912 among credit unions with assets of under $20 million, to a high of $314,969 among those with assets of $100 million or more.

Compare your total-dollar marketing budget (excluding staff salaries and benefits) to the average for credit unions in your asset size. If your budget is below the norm, an increase in your budget is probably in order so that you can compete more successfully for your members' business.

"Also, the 'average' marketing budget may not necessarily be the 'optimum' marketing budget if you are to effectively persuade your members to use your services over those provided by your competitors," notes Jon Haller, Director of Market Research at CUNA & Affiliates. Haller goes on to say, "When it comes to marketing dollars, it's always 'the more, the better.' And the numbers are showing me that a lot of credit unions are feeling the same way."

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