July 23, 2010


Comments

 
 
 
  • The problem of attrition is becoming more challenging to credit unions. An even greater challenge seems to be acquiring new members. The dramatic increase in competition among banks and financial services companies has generated the need for financial institutions to place increased emphasis on customer retention and acquisition.

    Banks and other financial institutions face competition from both bank and non-bank entities. For example, in the late 1990’s, there was rapid growth in the housing marketing in Florida. Consequently, the increase in demands for loans attracted high levels competition within the financial services industry.



    In the past, banks competed with banks and other financial intuitions for lending business. Now, all that is changing. Many “non-bank” organizations are providing lending services to small and mid-sized companies and individuals

    As a result of increase competition from banks and non-bank financial institutions, many credit unions have become aggressive in their approach to marketing and acquisition of new customers.

    The trend these days are for companies to aggressively offer discounts, introductory coupons, and other incentives to lure new customers. However, research in the financial services and other service industries show that these tactics can backfire.

    I am in agreement with the article which touts segmentation and a very target approach as the way to go.

    By: Karlene Facey C.E.O. Clarocision Research & Marketing- www.crmfirm.com

    Karlene Facey
     
     
     
 
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