Posted by Lisa Hochgraf
You wouldn't knowingly sell an alcoholic a beer, right? So would you market a credit card to a chronic abuser of credit? Is abstinence the best way in both of these cases?
This is the tough question Laura Enock explores today in her "Teaching Smart Monday Management" column. CEO of CUVA and publisher of www.CUcontent.com, Enock acknowledges that comparing alcoholism to having a tough time managing credit may be a bit dramatic. But she also tells a compelling story about how she and her husband gave up credit cards for debit for the good of their personal finances.
"Sure, you'd love to have more members carrying your credit card in their wallets," Laura writes. "And you may even have specific marketing goals surrounding that wish. But keep in mind that even if your rate and terms are better than anything else that's out there, your member may be better off without any credit cards. And if that’s the case, let your members know you appreciate their membership, want all their financial business and welcome them at the credit union. But be forthright and let them know that a credit card is not in their best interest. At the very least, don’t market it aggressively to a member who would be better off without it."
Does anyone already have a plan in place to market less to people who might find a credit card to be a less-than-helpful service? Anyone want to argue this another way? Check out the column and post your comments below.
