CU Newsletters Still Reign, Websites Lagging as Members’ Sources of CU Rate and Product Information

By Jon Haller
Director of Market Research
Credit Union National Association

Despite members’ growing use of online resources and Internet banking, it’s still the old "tried and true" paper-based newsletter that the majority of members turn to for information about their credit union’s rates, services and special promotions. This, according to CUNA Research’s benchmarking database of member survey clients.

And where do credit unions’ Websites fall on the list of information sources? A somewhat surprising #7, well behind a host of other alternatives, including statement stuffers, direct mail pieces and in-lobby sources. Part of the low Website reliance could be accounted for by both the size of the potential market and effort – as in how much effort do your members need to exert to obtain your rate, product and promotion information online?

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In terms of the "market size" issue, three-fourths (78%) of credit union members are online, according to a recent CUNA study. While that’s a fairly high percentage, pretty much everyone has a mailbox. Furthermore, not all online users utilize the Internet as a product research/information tool. That is, many instead use it primarily for e-mail and/or "entertainment" purposes (e.g., sports scores, stock quotes, the latest news). For these members, your Website is either not visited at all or not frequently enough to be considered a major information source for them. While, clearly, some credit unions’ members are more Internet savvy than others, the above two influences could quite conceivably yield a situation whereby your actual market for potential Website-visiting members is comprised of only about half of your membership.

As far as the effort issue goes, paper-based newsletters, statement stuffers, and direct mail are, in effect, "pushed" to members. At most, your members will have to open an envelope. But unless you’re "pushing" an e-newsletter to your members, obtaining information via your Website requires them to "pull" the information out themselves—that takes more effort, even it’s just plopping down in front of the computer, going online and going to your Website.

At the same time, though, with your Website’s ability to provide your members exactly the information they’re looking for at exactly the precise moment they’re wanting to find it, this option seems extremely appealing, from a member-service point of view.

If you haven’t yet done so, you may want to consider creating an e-newsletter—ideally with additional content (above and beyond your paper-based version) and/or links your credit union’s product information, rates and special promotions—that you can "push" to your members.

You have an already-existing group of potential e-newsletter recipients in your Internet- banking users. The rest of your distribution list can be built through a well-organized and ongoing opt-in effort— allowing members to sign-up for the e-newsletter at your Website, at the teller window, via the phone (including your audio response system), etc.

Will reliance on credit unions’ Websites as an important information source rise through time? Logic says yes, but only time will tell.

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