Cross-selling to members is a primary goal of credit union managers. Of special interest are those members that are new, low-balance, indirect loan recipients or single-service members. But why is this “silver bullet” issue so difficult to master? Credit union efforts to increase cross-sales often focus on front-line staff training and developing a vast array of competitive, sticky product offerings. However, there are important factors to the cross-sell that credit unions sometimes overlook; here are two of them:
- Brand – Many disaffected members have little knowledge about the credit union. Here, branding and the on-boarding or re-boarding process becomes very important. Matt Purvis, VP of Marketing at Northwest Community Credit Union ($620M, Eugene, OR) notes that their on-boarding call program for indirect members “establishes a good brand foundation for the follow-up and other efforts”. The outgoing calls to indirect loan recipients are never salesy; they are purely a call to personalize the lender in the car purchasing process.
- Branch Interaction – Many cross-selling and on-boarding campaigns begin with a phone call or other marketing piece. Here, the focus of the effort should be on getting members into the branch and starting a dialogue. It is much easier to build a relationship with a member face-to-face (it’s also more difficult to turn down offerings in person). What’s more, physically getting a member into a branch is important in establishing a comfort level with the financial institution, even if the majority of their banking activities are conducted through other delivery channels. Targeted on-boarding to those that live closest to branches will increase marketing success and ROI.
To see Matt Purvis’ discuss cross-selling to indirect members, watch this CUtv clip: