Despite community charters and an increase in credit union marketing budgets, growing membership is a challenge for most credit unions. In 2005 credit union membership grew less than 2%, adding just 1.5 million members nationwide. In short, credit unions need to turn to new innovative programs to grow members, savings and loans.
This report investigates changes in marketing strategies across industries. Further, it explores the power of “word of mouth”, how it influences consumer purchasing behavior, and successful direct selling business models that credit unions can implement to grow their credit union. Finally, this report highlights case studies on MoneyWorks: “A Credit Union In-Home Party That’s Fun!
What is the research about?
Filene’s i3 innovation group examined the opportunities available to credit unions in the new media environment. The results of their inquiry are detailed in this report. Taking a page from the playbook of direct selling giants like Tupperware, The Pampered Chef and Avon, the i3 team created a program through which credit union advocates host informal gatherings of friends, relatives, neighbors and other community contacts to explore critical financial issues as well as the benefits of credit union membership and services.
What are the credit union implications?
MoneyWorks creates a low-cost alternative delivery channel for the credit union and a source of income for the independent representatives who delivery the program. This publication details the application in three case studies that bring this concept to the marketplace.