Posts Tagged ‘expense’

Marketing your CU’s Credit Cards

December 16, 2010

Right now, it’s a little bit more than a month away, but I’m nevertheless already excited for EverythingCU’s next webinar, How to Determine Your Credit Card Portfolio’s Marketing Needs which will be presented by Ondine Irving, creator of the nationally recognized Credit Card Connection program.

Ondine is an expert in credit union credit cards and her consulting branch is Card Analysis Solutions. Because of her deep knowledge of this arena of CU business, she routinely saves her clients tens of thousands of dollars by eliminating unnecessary and redundant charges coming from the card processor.

In this webinar, Ondine will show you how to analyze YOUR current card portfolio to determine what course of marketing action will maximize your ROI. Sometimes your card processor wants to sell you something that will benefit your credit union, but sometimes they are trying to sell you something which is in their best interests, which is not necessarily yours. Attend this webinar to gain the knowledge to put yourself in the driver’s seat of your card portfolio. You might even end up being able to save your CU some money on the expense side as well.

In the meantime, make sure your credit union is listed in the national database of the Credit Card Connection by registering here (which is FREE). Suze Orman continually promotes this site through her latest book and tv appearances, and credit unions that are featured get a steady flow of new card applications.

To learn more about the webinar including pricing, or to sign up for it, register yourself on EverythingCU.com (which is quick, free and easy) if you haven’t already, and check out this webinar’s detail page here.

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New Year, New Budget, New Goals

January 5, 2009

At the prompting of EverythingCU member Mike Anderson, I decided to do a little slicing and dicing of the EverythingCU Marketing Budget Report to find out what the actual national average is for total marketing budget spent compared to total net new members walking in the door.

I have good news and bad news.

The bad news: Membership growth has been very flat. Credit unions are spending decent amounts of money on marketing. Thus, we’re spending a LOT of money to get relatively small results. If your net new members number is at all positive, you are doing well, congratulations!

The good news: This means that you can go to your CEO and legitimately say “it takes a LOT of marketing money to bring in a new member to the CU movement, you’d better give me a bigger budget if you want new members.”

So to all the VPs of Marketing and Marketing Managers in CU-land, you are welcome. To all the CEOs and CFOs, I’m sorry, but it is what it is.

Here are the numbers:
These numbers are based on year-end 2007, the latest year for which we have complete, full-year data.

Of the largest 4213 CUs in the nation:
Average net member growth was: 1.15%
Average number of members 12/31/07: 19,767
Average number of members 12/31/06: 19,270

Therefore, average gain in membership was: 497

Average marketing budget, 2007 for those same CUs: $236,337

Therefore, across the CU movement as looked at here, the average cost to gain a new member was…. wait for it…..

$475 EACH.

Please bear in mind that this does NOT take into account TOTAL new members, only NET new members. You may also ask, “why 4213?” I set our marketing budget report to show 5,000 CUs, and apparently 787 CUs out of the top 5000 have been merged out of existence, that we weren’t aware of, since we created our database of CUs in the year 2000. Also, you might say that 2008 is different than 2007, and you’d be correct, but I’m guessing that the national average won’t come out very differently. I’ll run it again in a couple of months when the NCUA releases their year-end 2008 data.

Personally, I would not recommend taking this $475 number to your CEO unless you want to induce a heart attack. On the other hand, if you are bringing in new members at a lower cost, perhaps you can wrangle yourself a raise out of it.

If you want to slice and dice the numbers yourself and get something more meaningful, i.e. a smaller sampling of YOUR CU peers, feel free to check out the EverythingCU Online Marketing Budget Report.