Engaging Your Credit Union's Gen Y Members with … Gamification

 

For credit unions big and small, it doesn’t seem to matter how many new members were brought in, how many points the loan-to-share ratio increased or even the number of new products that are in the pipeline – they continue to ask the same question: “With an aging membership, how do we get younger?”

Chances are good your credit union has launched (or is considered launching) a strategy to jumpstart that process. Having grown up in the Digital Age, Gen X and Gen Y are a different type of member. They have information available immediately at their fingertips that almost certainly involves some sort of social media platform. The bottom line is, they are engaging and interacting with companies of their choosing almost daily. What this new generation needs are the tools and support to succeed in this new economy – preferably from credit unions. 

Leveraging Technology

It is important for credit unions to take advantage of the technological trends available today or they risk falling behind and missing a golden opportunity to be the long-term financial partners for this next generation of members. One such trend is: Gamification. Gamification is the use of games in a non-game context to boost user engagement, ROI, education and more. 

According to eWallStreeter.com, gamification is expected to be used by 70 percent of the world’s largest companies in some form in 2014 and is projected to generate $2.8 billion in consumer spending by 2016.

• Credit unions can utilize gamification as a fun tool to:
• Create more frequent member engagement
• Inform and cross-sell more products
• Build positive brand awareness and loyalty
• Increase members’ financial awareness
• Create the desire to improve one’s financial health
• Motivate staff members

And in this online world of gaming and mobile, the gamification of personal finance seems like a natural progression. That being said, the marriage of personal finance and gamification needs to be a somewhat cautious one. Like in everything credit unions do, their members’ needs should be put first – not the credit union’s need to market its products and services. 

Start Where?

Integrating game mechanics into your credit union’s products and programs is not has hard as you may think. You can create a simple friend and family referral program and set up leaderboards, identify your strongest advocates and then reward members in different ways. You can also create internal competitions and reward the employee who generates the most leads for a certain product you’re marketing. 

Financial products utilizing gamification are also steadily increasing. The Save to Win program is a great example of a financial product that uses the motivation of winning prizes to get members to save more. As of October, 62 credit unions across Michigan, Nebraska, North Carolina and Washington have offered the program to the tune of 16,654 accounts and more than $36 million in savings. Another solid example is SaveUp.

SaveUp is an online program that uses game mechanics and real prizes to not only motivate credit union members to save money and pay down debt, but also to provide credit unions with a marketing tool to deepen their share of wallet and increase member engagement. Since late 2012, 40 Michigan credit unions have implemented SaveUp to engage their younger membership and market their financial products and services.

The use of gamification can help credit unions engage members, build stronger relationships and, of course, bring in a new generation of tech-savvy members who are looking for the latest and greatest ways to look at their finances. However, be careful that whatever program you implement does not come off as gimmicky or too promotional. Make it purposeful and authentic – but, of course, keep it fun!

Whatever program your credit union decides to start with, we promise that your members will thank you for bringing a little gamification fun into their lives. And who knows? Your credit union could end up reaping the benefits. This path can help credit unions reach an entirely new audience and develop a stronger relationship with these new members.

5 Signs Your Credit Union Needs a Member Analysis

No matter the organization, it’s common to cruise on the “business as usual” mode dealing with the day-to-day work without thinking about the big picture. Without thinking of ROI or overall effectiveness. But chances are, when you do look up you’ll discover that your results aren’t what they used to be.

If this is the case at your credit union (no worries, we don’t judge), then it might be time to consider taking a step back to evaluate your current status with credit union member analytics. It’s easier and more affordable to grow from the membership base you currently have than to woo new members. Plus, the data you collect from member analytics can help you make more concrete marketing decisions.

Still not sure member analytics are for you? To help you decide, we have five signs your credit union may need a member analysis.

1. The credit union down the street always seems busier than yours.
   
   Does it seem like the competition, whether it’s a nearby bank or credit union, always has a leg up? That they’re always one step ahead with membership, marketing and revenue? It seems like you offer the same products and services and competitive rates – so what gives?
   
   Member analytics can help you identify where your credit union’s growth opportunities truly are. You can uncover which marketing segments you have already strongly penetrated and which ones have room for growth. Credit union member analysis can give you the details you need to make improvements and keep your branches busy.
    
2. You’re not sure who your most or least active members are.
   
   Sure, your credit union wants to retain those members who hold the majority of its assets – but do you know who these members are? Our credit union experience has found that for most credit unions, those with the largest amount of assets make up a small percentage of its actual membership. On the flip side, you should also determine who your least active members are so you can target them for increased wallet share.
   
   Knowing which members you want to focus on retaining and those who need to increase their activity is all possible with member analysis. This data can also help you better focus your marketing dollars where they’re needed and avoid sending the same messaging to all members – who aren’t necessarily in the market for the same products or services.
    
3. Most of your members use only one product and/or service.
   
   It’s no secret that it’s significantly easier to expand a relationship with a current member than it is to gain a new one. The ultimate goal, of course, is to be your members’ primary financial institution for everything from checking and savings accounts to loans and investments. And the more products/services your members use, the less likely they are to stray.
   
   The best way to meet all your members’ financial needs is to first discover what those needs are. Not to sound like a broken record, but a credit union member analysis is the best, most effective way to find out what makes your members tick and uncover their level of commitment to your credit union. Member analytics will have the answers.
    
4. You’re looking to market to Gen Y, but don’t know where to begin.
   
   Sure, Gen Y (anyone born in the mid-80s to mid-2000s) is the coveted demographic to target – but what’s the best way to approach them?
   
   To start, find out the size of your current Gen Y credit union membership. You may already have a substantial portion of your membership fitting this age range and don’t even realize it. Member analytics can break down your membership not only into age ranges but income levels as well. Instead of targeting new Gen Y members, you may only need to cultivate the ones your credit union already has. 
    
5. Your last marketing campaign wasn’t as successful as you thought it’d be.
   
   If yours is one of the credit unions that benefitted from Bank Transfer Day and all of its afterglow, your recent focus may have been on growing new membership. Instead of, or in addition to, marketing to new members you may want to contemplate cross-selling to your existing members.
   
   To effectively market to your current members you need to harness the power of member data. It will help you uncover vital information like how much they can afford, their level of loyalty and what communities you’re actually reaching. Member analysis will help uncover this vital information and help better position your efforts with any upcoming marketing campaigns.

You’ve Got the Power

Your credit union already has the power to connect with its members and grow its wallet share – the power of data. Member analytics can help give you a better understanding of the average age, income, home ownership and ethnic make-up of the communities you serve.

Everything you need to know about your membership is already there, you just might need some help uncovering and interpreting it. CU Solutions Group’s marketing research experts can perform a custom member analysis, at almost any budget, for your credit union to help it tap into its power.

Related Services:  Member Analytics, Marketing Research