Profit Potential

SEGs represent not only loyal members but also a chance for credit unions to generate valuable relationships.

 
 

Select employee groups provide a strong base for many credit unions’ memberships and can represent profitable relationships. Whether catering to public servants such as firefighters or employee groups of an important local company, ensnaring a SEG can improve performance.

A new study released by J.D. Power & Associates examines the banking industry, account patterns, and satisfaction. The study reported  8.7% of customers switched primary financial institutions in the past year. 

Lifestyle changes can be a big driver of these switches, and getting a new job is one of the biggest changes a person undergoes. When a someone gets hired at one of your SEGs, he or she represents an opportunity for conversion to your membership. Unfortunately, the inverse situation serves as a reminder, too. Layoffs are a way for members to justify switching financial institutions, so make sure you’ve created lasting value for SEG members so they stick with the credit union regardless of their employment situation.  

But how can you capture a new SEG and maximize its profitability once you do so? Let’s take a look at a few credit unions that have succeeded.

SEGs represent a chance for credit unions to not only gain loyal members but also profitable relationships. But you have to know how to get these members into the fold. Some of the examples above might be a good starting point.

 
 

March 1, 2011


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