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This article is sponsored by CU Solutions Group.
Whatever industry you’re in, marketing forecasters are hailing the growth of digital marketing and advertising. In fact, an eMarketer survey of the financial services industry found that digital ad spending increased 17.7 percent from 2013 to 2014, reaching $6.28 billion last year. Given the study results, the research firm predicts that digital ad spending will continue to grow to almost $10 billion by 2018.
It’s one thing to read these kinds of numbers, but it’s entirely different to see the growth in action. $330 million/27,000-member Catholic Federal Credit Union, Saginaw, Mich., teamed with CU Solutions Group, a credit union service organization, for its recent digital marketing campaign, and the results were more than hoped for. Link to 6/10 Skybox post
The Challenge
As with most credit unions, Catholic FCU has been struggling to reach and engage younger demographics, such as Gens X and Y, when promoting its loan products. In the past, its marketing efforts included traditional radio, direct mail, social media, branch posters and more to reach its coveted demographics, with varying success.
It wasn’t until the credit union’s VP/marketing, Bethany Dutcher, attended a lunch and learn event that the tide began to turn. CU Solutions Group was at the event discussing its success using the Internet radio service Pandora. “I was very intrigued with what they had to say and decided that for my next campaign I wanted to work with them,” she explains.
The Campaign
The push for focusing more on digital marketing was evident to Dutcher. “I know for myself, I listen to Pandora throughout the week and use my iPhone to search for whatever I’m looking for. This is how people do things now and is why we need to increase our digital marketing efforts to reach current and potential members.”
Catholic FCU’s loan campaign was a mix of traditional and digital platforms, such as Pandora and traditional radio, billboards, social media, paid search, direct mail and others. The new elements in the credit union’s marketing mix were Pandora and paid search. “The days of relying just on direct mail are over,” states Dutcher. “I believe you still need to do direct mail and other traditional means, but you also need to do online marketing as well.”
The Results
The campaign ran three months, from January to March 2015. During that time period, Catholic FCU booked over $5.3 million in balance transfer loans for a total of 708 loans. This figure doesn’t even include the additional member auto loans the credit union refinanced during that time period. But loans weren’t the only area in which the credit union saw growth. “Our new account numbers doubled during the promotional period and our new Visa numbers were the highest I have seen in the 13 years I’ve been with Catholic FCU,” Dutcher exclaims.
Another positive side effect of this successful campaign was an increase in online activity. The credit union’s website traffic doubled during the three months, mainly due to the members who applied for loans online and took advantage of the credit union’s e-signature capabilities. That means a huge portion of Catholic FCU’s current and new members were able to apply for a loan without ever stepping into a branch.
The Future
The credit union found it both convenient and affordable to work with CU Solutions Group on its recent campaign. So much so that it’s working with the company’s marketing team for its next loan campaign as well. “Using Pandora through CU Solutions Group came at a lower cost thanks to their ability to buy ads in bulk vs. trying to purchase ads on your own,” Dutcher confesses. “I contacted Pandora directly and the cost was much more expensive.”
But cost and convenience aren’t the only reasons Catholic FCU will be working with CU Solutions Group on its next campaign. “This area of CU Solutions Group is an untapped resource for credit union marketers who are wearing many hats in their organization,” says Dutcher. “CU Solutions Group has the knowledge to help take your campaign to the next level and get the results you need.”
