Credit Unions continue to focus their efforts on millennials.
Here is some interesting information from a recent survey about direct mail for credit unions to over 10,000 individuals. The results indicated that 1 in 3 millennials are open to switching banks in the next quarter. As a matter of fact, one third of millennials don’t believe they need a bank at all.
According to Amy McGraw, VP of Marketing at Tropical Financial Credit Union, many millennials are suspicious of large financial institutions after the financial crisis of 2008. They remember when Band of America instituted a $5 a month debit card fees in 2011. The survey reported that millennials are more comfortable with smaller banks. They enjoy hyper-local institutions where there is a lot of familiarity and trust. In fact, a JD Power survey indicated that big banks were losing customers at a faster rate to smaller banks and credit unions That is due to poor service and increased fees.
An article in the South Florida Business Journal shares a comment from Brian Warfel, Executive VP of retail delivery and branding for Power Financial Credit Union. Brian explains that it’s hard for a credit union to compete with a big bank from a marketing standpoint. There is no way to compete in terms of the cost of prime-time TV advertising. The article further explains that Credit Unions are reaching out to millennials via social media and word-of-mouth.
Well, social media and word-of-mouth will only get you so far. Credit Unions need to expand their marketing horizons and go back to the basics for success.
Need to Inspire Trust
Since trust appears to be an important factor for millennials in joining a credit union, as a direct mail maven, this is my comment to Credit Unions:
- Direct mail makes a product more important and inspires trust
- Nielsen Research demonstrates that 90% of millennials make purchases as a result of direct mail.
- Millennials can easily be targeted with a quality mailing list.
- Mail is tangible – unlike email, it cannot be ignored.
- Mail offers great branding opportunities and allows for creative design, and impressive imagery
- Direct mail for credit unions is cost-effective.
BTW – today (November 6, 2018) I read another article in the Business Journal. This one was about Miramar-based Tropical Financial Credit Union, who has a focus on millennials. They are piloting a new campaign intended to help borrowers pay down student debt. If there was ever a great opportunity for an amazing direct mail for credit unions, this is it. Millennials are easily targeted and many of them are saddled with student loans. They are looking for a solution. Tropical Financial can ease their pain. They should start by seeing how many millennials are in their geography. Then, testing a fabulous direct mail program to drive people to their app.