How to Attract More Select Employee Group (SEG) Members

By Jon Haller
Director of Market Research,
Credit Union National Association

Promotion of credit union services to select employee group (SEG) employees is lacking fairly significantly, in part because SEG liaisons at the companies do not consider pushing the credit union much of a priority. Currently, promotion by SEG-company liaisons is limited, for the most part, to bulletin-board postings in the workplace and/or the inclusion of credit union materials in new-employee packets. Yet even these two methods are practiced by fewer than two-thirds of SEGs. On-site presentations at the workplace, a tool proven to be successful, are among the many promotional methods allowed by only small percentages of SEGs.

This, according to the study, "Credit Union/Employer Partnerships: Building Worker Assets," which was sponsored by the National Credit Union Foundation (NCUF), funded by the Ford Foundation and conducted by CUNA Market Research. Other organizations involved in and supporting the project were The Center for Credit Union Innovation, The Filene Research Institute, and The Aspen Institute.

As might be expected, though, membership penetration in the various SEGs increases as the company’s SEG liaison’s overall "support" of the credit union increases. SEGs in which the liaison was "highly supportive" of the credit union recorded an average member-penetration level among the employees that is nearly twice that of SEGs in which there was "minimal support" from the liaison at the company.

"Highly supportive" SEG liaisons are defined as those placing a great deal of value on credit union relationship, understanding the benefits their credit union can bring to both their employees and their company, and willing to take proactive steps to promote the credit union to their employees. Those liaisons falling into one of the other two lower support levels are less inclined to hold these views and/or provide this support.

While multiple-SEG credit unions are succeeding in many aspects of their relationships with their SEGs, there are clearly a number of areas in which improvements can be made to increase membership and product use, and help workers—especially low-income workers—build their assets and reduce their debt loads.

Developing stronger relationships with SEG liaisons is one of several important keys to building membership growth and increasing members’ use of credit union services. Additionally—and perhaps most importantly—credit unions should concentrate on investing more human- and financial resources in their SEG-development (i.e., adding SEG companies) and SEG-penetration (i.e., acquiring new SEG members) functions.

A more in-depth review of the findings and several strategic considerations emerging from this study can be found in CUNA’s upcoming 2002 National Member Survey Report.

Other Issues of Research Review

Previous Issue:
Upcoming 2002 National Member Survey Report Points to Best Prospects for Remote-Banking Services