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I am fortunate to serve on the Texas Credit Union League’s Communications Advisory Committee. At our meeting last month, representatives from the League shared some powerful statistics and information about our credit union environment. Below are some the highlights in the areas of age distribution, shifting ethnicity, and what Boomers want from their PFI.

However, just like CUNA’s excellent E-Scan (a must read), information is useless unless you do something about it. So after each informational area I offer some suggestions for what credit unions can actually take.

Age Distribution

The following was shared from CUNA’s 2009-2010 National Member Survey:

• Credit union members are getting older. Members’ average age is now 47, up from 1985.


• To meet long-term lending goals, credit unions will have to attract more consumers from the 18-to-24 age group. And the news on this front is not good. The percentage of members age 18 to 24 is small and getting smaller.


• Credit unions need a two-pronged strategy for achieving future loan growth. They need to continue to attract more consumers in the peak borrowing years of 25 to 44 and they need to attract even younger consumers 18 to 24.

—Action Steps

Credit unions have talked for years about getting younger, but the reality is we are heading in the wrong direction. Here are some suggestions:

(1)    Target the parents (who are credit union members) to get the youth.

(2)    Offer technology products such as online account opening, mobile banking, text alerts, etc. that youth want.

(3)    Embrace youth at your credit union: hire young, put Generation Xers on the board, promote young people to executive positions, etc.

(4)    Adopt a complete youth marketing strategy that includes social media, key events, college partnerships, etc.

Shifting Ethnicity

The following was shared from the U.S. Census Bureau:

• Hispanics are the fastest growing portion of the U.S. population, representing about half the growth since 2000. After the 2010 census, demographers expect Hispanics to total 50 million or about 15% of the population. This figure will rise  to nearly 25% in 15 years.


• The size and relative youth of Hispanic consumers make them attractive to credit unions looking to not only grow membership but to expand their pool of peak borrowers. The Hispanic population is also migrating to other regions beyond the western and southern regions.

Like the youth, Hispanics are a prime growth target. But reaching them is easier said than done. Here are some suggestions:

(1)    Hire bilingual staff throughout your credit union.

(2)    Make sure all your marketing material is in Spanish (not just one brochure).

(3)    Form partnerships with key Hispanic organizations in your area (Hispanic chambers, small businesses, etc.).

(4)    Immerse your credit union completely in the Hispanic culture, especially if you have branches in largely Hispanic population zones.

What Boomers Want from Their PFI

The following was shared from a CUNA Mutual Group Retirement Research Study:

• More than 40% for credit union members are baby boomers and 17% of these members are likely to leave their credit union.


• Currently boomers say credit unions do not play a significant role in their financial lives and they don’t rely on them for financial guidance and advice.

Boomers, boomer, boomers. If credit unions take them for granted, they will lose them. Here are some thoughts for not just retaining them but thriving with them:

(1)    Offer financial planning services and don’t treat it as an after –thought in your marketing strategy: make it a core product offering (just like loans and checking accounts).

(2)    Offer special products designed just for Boomers—not around their age but rather on their active and full lives.

(3)    Focus on advice rather than selling; if you give them advice the sale will eventually come.

(4)    Flood them with financial information through your website, financial seminars, etc. Don’t just make your website information but rather design it to help them manage their portfolios.

The information the League shared is invaluable—now it’s up to us in credit unions to do something with it.

I am fortunate to serve on the Texas Credit Union League’s Communications Advisory Committee. At our meeting last month, representatives from the League shared some powerful statistics and information about our credit union environment. Below are some the highlights in the areas of age distribution, shifting ethnicity, and what Boomers want from their PFI.

However, just like CUNA’s excellent E-Scan (a must read), information is useless unless you do something about it. So after each informational area I offer some suggestions for what credit unions can actually take.

Age Distribution

The following was shared from CUNA’s 2009-2010 National Member Survey:

• Credit union members are getting older. Members’ average age is now 47, up from 1985.


• To meet long-term lending goals, credit unions will have to attract more consumers from the 18-to-24 age group. And the news on this front is not good. The percentage of members age 18 to 24 is small and getting smaller.


• Credit unions need a two-pronged strategy for achieving future loan growth. They need to continue to attract more consumers in the peak borrowing years of 25 to 44 and they need to attract even younger consumers 18 to 24.

—Action Steps

Credit unions have talked for years about getting younger, but the reality is we are heading in the wrong direction. Here are some suggestions:

(1)    Target the parents (who are credit union members) to get the youth.

(2)    Offer technology products such as online account opening, mobile banking, text alerts, etc. that youth want.

(3)    Embrace youth at your credit union: hire young, put Generation Xers on the board, promote young people to executive positions, etc.

(4)    Adopt a complete youth marketing strategy that includes social media, key events, college partnerships, etc.

Shifting Ethnicity

The following was shared from the U.S. Census Bureau:

• Hispanics are the fastest growing portion of the U.S. population, representing about half the growth since 2000. After the 2010 census, demographers expect Hispanics to total 50 million or about 15% of the population. This figure will rise  to nearly 25% in 15 years.


• The size and relative youth of Hispanic consumers make them attractive to credit unions looking to not only grow membership but to expand their pool of peak borrowers. The Hispanic population is also migrating to other regions beyond the western and southern regions.

Like the youth, Hispanics are a prime growth target. But reaching them is easier said than done. Here are some suggestions:

(1)    Hire bilingual staff throughout your credit union.

(2)    Make sure all your marketing material is in Spanish (not just one brochure).

(3)    Form partnerships with key Hispanic organizations in your area (Hispanic chambers, small businesses, etc.).

(4)    Immerse your credit union completely in the Hispanic culture, especially if you have branches in largely Hispanic population zones.

What Boomers Want from Their PFI

The following was shared from a CUNA Mutual Group Retirement Research Study:

• More than 40% for credit union members are baby boomers and 17% of these members are likely to leave their credit union.


• Currently boomers say credit unions do not play a significant role in their financial lives and they don’t rely on them for financial guidance and advice.

Boomers, boomer, boomers. If credit unions take them for granted, they will lose them. Here are some thoughts for not just retaining them but thriving with them:

(1)    Offer financial planning services and don’t treat it as an after –thought in your marketing strategy: make it a core product offering (just like loans and checking accounts).

(2)    Offer special products designed just for Boomers—not around their age but rather on their active and full lives.

(3)    Focus on advice rather than selling; if you give them advice the sale will eventually come.

(4)    Flood them with financial information through your website, financial seminars, etc. Don’t just make your website information but rather design it to help them manage their portfolios.

The information the League shared is invaluable—now it’s up to us in credit unions to do something with it.

In a recent session at Southwest CUNA Management School on “Advanced Branding for Credit Unions,” I had a Dallas branding company called Loudthought share a few case studies along with some of their ideas about the importance of branding.

One thing their CEO, Jim Foley, said especially struck me: “People hear what they see.” He went on to say that people will trust their eyes before your words.

So think about that minute. You can say your credit union is all about service and being member focused. But what do your branches look like? Retail marketing—how your branches look and feel—matter. This is especially important for older members because the branch is where they conduct the majority of their transactions.

Or you could look at the other end of the age spectrum and think of children. If one of your strategic goals is to get younger, do you have a kids’ play area inside the branch? Have you considered the radical step of having video games in the lobby for teens?

But it’s not just how your branches look and feel. With branding, everything matters. Even how your bathrooms smell. What are your bathrooms communicating about your brand? With branding, perception truly is reality.

What do members see when they drive up to your branch? What do they see when they walk in? Are you promising them one thing and delivering something else?

Here are some quick questions you can ask:

(1)    How is the parking lot maintained?

(2)    Is there adequate parking available?

(3)    Are sidewalks litter-free and maintained?

(4)    Are doors and windows clean?

(5)    Is the landscaping maintained?

(6)    Is the member service area clean, orderly and free of food and drinks?

(7)    How does the lobby look?

(8)    Is the marketing literature displayed nicely?

(9)    How is your staff dressed and groomed?

(10) How is the staff at maintaining professional behavior (refrain from chewing gum, OVER-socializing, drinking or eating in the presence of members)?

In a recent session at Southwest CUNA Management School on “Advanced Branding for Credit Unions,” I had a Dallas branding company called Loudthought share a few case studies along with some of their ideas about the importance of branding.

One thing their CEO, Jim Foley, said especially struck me: “People hear what they see.” He went on to say that people will trust their eyes before your words.

So think about that minute. You can say your credit union is all about service and being member focused. But what do your branches look like? Retail marketing—how your branches look and feel—matter. This is especially important for older members because the branch is where they conduct the majority of their transactions.

Or you could look at the other end of the age spectrum and think of children. If one of your strategic goals is to get younger, do you have a kids’ play area inside the branch? Have you considered the radical step of having video games in the lobby for teens?

But it’s not just how your branches look and feel. With branding, everything matters. Even how your bathrooms smell. What are your bathrooms communicating about your brand? With branding, perception truly is reality.

What do members see when they drive up to your branch? What do they see when they walk in? Are you promising them one thing and delivering something else?

Here are some quick questions you can ask:

(1)    How is the parking lot maintained?

(2)    Is there adequate parking available?

(3)    Are sidewalks litter-free and maintained?

(4)    Are doors and windows clean?

(5)    Is the landscaping maintained?

(6)    Is the member service area clean, orderly and free of food and drinks?

(7)    How does the lobby look?

(8)    Is the marketing literature displayed nicely?

(9)    How is your staff dressed and groomed?

(10) How is the staff at maintaining professional behavior (refrain from chewing gum, OVER-socializing, drinking or eating in the presence of members)?

In a recent session at Southwest CUNA Management School on “Advanced Branding for Credit Unions,” we had a passionate discussion about whether small credit unions can compete against larger ones. The answer: niche marketing. Size doesn’t matter—niches do.

Successful credit unions (no matter the size) target niche groups. Your credit union cannot be all things to all people. It might be families, single moms, seniors, Hispanics or one of a dozen other demographic profiles.

The key is to pick three or four groups and become a financial service provider leader for them. Your credit union is better off being the number one choice of a small subgroup than the fifth or sixth choice of a larger group. The smaller, niche group tends to be more loyal to you.

For example, I conducted a long-range planning session followed by a brand plan for Heart of Louisiana Federal Credit Union. During that process we determined the credit union was challenged by trying to serve too wide of an audience. We chose to focus on blue collar workers, professionals and residents near one of their branches.

“Focus is critical to our brand and credit union’s success,” said Cindy Beauregard, CEO of Heart of Louisiana FCU. “We were able to identify specific niches we were good at serving. Instead of focusing in every direction we now target similar subgroups, which leads to better results.”

So what are a few emerging niche groups your credit union might want to consider targeting? Here are a few to consider:

(1)    Minorities/new immigrants

(2)    Low wealth/underserved

(3)    Small businesses

(4)    Young adults

(5)    Mompreneurs

(6)    Prime Time Women

Astute marketers will notice that these unique groups might require unique lending situations. These target groups are getting loans somewhere: the question is, are they getting them from your credit union?

It’s also important not to put all your eggs in one basket. Multiple targets could shield you from possible economic downturn in one particular industry.

Big or small, all credit unions can compete—just find your niche.

In a recent session at Southwest CUNA Management School on “Advanced Branding for Credit Unions,” we had a passionate discussion about whether small credit unions can compete against larger ones. The answer: niche marketing. Size doesn’t matter—niches do.

Successful credit unions (no matter the size) target niche groups. Your credit union cannot be all things to all people. It might be families, single moms, seniors, Hispanics or one of a dozen other demographic profiles.

The key is to pick three or four groups and become a financial service provider leader for them. Your credit union is better off being the number one choice of a small subgroup than the fifth or sixth choice of a larger group. The smaller, niche group tends to be more loyal to you.

For example, I conducted a long-range planning session followed by a brand plan for Heart of Louisiana Federal Credit Union. During that process we determined the credit union was challenged by trying to serve too wide of an audience. We chose to focus on blue collar workers, professionals and residents near one of their branches.

“Focus is critical to our brand and credit union’s success,” said Cindy Beauregard, CEO of Heart of Louisiana FCU. “We were able to identify specific niches we were good at serving. Instead of focusing in every direction we now target similar subgroups, which leads to better results.”

So what are a few emerging niche groups your credit union might want to consider targeting? Here are a few to consider:

(1)    Minorities/new immigrants

(2)    Low wealth/underserved

(3)    Small businesses

(4)    Young adults

(5)    Mompreneurs

(6)    Prime Time Women

Astute marketers will notice that these unique groups might require unique lending situations. These target groups are getting loans somewhere: the question is, are they getting them from your credit union?

It’s also important not to put all your eggs in one basket. Multiple targets could shield you from possible economic downturn in one particular industry.

Big or small, all credit unions can compete—just find your niche.

I was listening to the radio a few weeks ago and heard that the game show Jeopardy was introducing a new category called Alex Meets Auto Tunes. Auto Tunes is a voice enhancement technique used primarily by rap artists to add digital sound effects to their songs. In this Jeopardy category, host Alex Trebek performs the verse of a song with technological help. The contestants have to answer with the correct name of the song. The category debuted with nursery rhymes and folk songs like The Farmer in the Dell, Oh Susana and Danny Boy.

The radio station and a few random blogs “presume” this new segment is the show’s attempt to engage a younger audience. I have found nothing to confirm this however, and from a marketing perspective, I find it hard to believe that such a long running show would jeopardize (no pun intended) its brand to engage young people with irrelevant content.

Think about it. Jeopardy has a very consistent brand and a very consistent audience. Changing one category that doesn’t even appear on every show is the equivalent of a credit union claiming it engages youth because it publishes a youth newsletter a few times a year. Unfortunately, a youth newsletter, on its own, doesn’t engage kids anymore than a folk song does.

The real way Jeopardy engages a younger crowd is by inviting them on the show. There are several college weeks in each season when all the contestants are college students. Last week, Jeopardy hosted kids week. All 15 contestants were school age kids, and all categories were kid friendly. During college week and kid week, Jeopardy doesn’t change its format or its brand. It simply offers questions that are more age appropriate for youth with above average intelligence.

That’s the way credit unions should engage their youth members—with age appropriate products and services. Taking the fee off your regular checking account and calling it a youth account is not engaging your young members. Offering them accounts with age appropriate features and benefits is.

Some credit unions host summer money camps. Kids learn key money skills like writing a check, using credit and making a budget in a fun environment. Some credit unions have partnerships with area school. They offer age-appropriate financial education in the classrooms. Some even make their own curriculum. Some credit unions use age appropriate blogs to start conversations with and among their youth members about financial topics important to those youth. Others also have youth advisory boards.

I was listening to the radio a few weeks ago and heard that the game show Jeopardy was introducing a new category called Alex Meets Auto Tunes. Auto Tunes is a voice enhancement technique used primarily by rap artists to add digital sound effects to their songs. In this Jeopardy category, host Alex Trebek performs the verse of a song with technological help. The contestants have to answer with the correct name of the song. The category debuted with nursery rhymes and folk songs like The Farmer in the Dell, Oh Susana and Danny Boy.

The radio station and a few random blogs “presume” this new segment is the show’s attempt to engage a younger audience. I have found nothing to confirm this however, and from a marketing perspective, I find it hard to believe that such a long running show would jeopardize (no pun intended) its brand to engage young people with irrelevant content.

Think about it. Jeopardy has a very consistent brand and a very consistent audience. Changing one category that doesn’t even appear on every show is the equivalent of a credit union claiming it engages youth because it publishes a youth newsletter a few times a year. Unfortunately, a youth newsletter, on its own, doesn’t engage kids anymore than a folk song does.

The real way Jeopardy engages a younger crowd is by inviting them on the show. There are several college weeks in each season when all the contestants are college students. Last week, Jeopardy hosted kids week. All 15 contestants were school age kids, and all categories were kid friendly. During college week and kid week, Jeopardy doesn’t change its format or its brand. It simply offers questions that are more age appropriate for youth with above average intelligence.

That’s the way credit unions should engage their youth members—with age appropriate products and services. Taking the fee off your regular checking account and calling it a youth account is not engaging your young members. Offering them accounts with age appropriate features and benefits is.

Some credit unions host summer money camps. Kids learn key money skills like writing a check, using credit and making a budget in a fun environment. Some credit unions have partnerships with area school. They offer age-appropriate financial education in the classrooms. Some even make their own curriculum. Some credit unions use age appropriate blogs to start conversations with and among their youth members about financial topics important to those youth. Others also have youth advisory boards.

What comes to mind when you hear the word car? Do think of the word car or do you see an image of a car? What does that car look like? Is it your car or is it someone else’s car?

These are the kinds of questions partners from Attune ask during a typical interview session with consumers. Attune has developed a new marketing methodology based on how the brain processes information. Their research reveals two important details about the way people think:

1. People think in images and metaphors


2. People make 95 percent of their decisions subconsciously.

“Our senses process more than 11 million bits of information per second. Our consciousness can only process 20 - 40 bits per second, from all sources. We make decisions constantly without being consciously aware of it,” said Maya Bourdeau, founding partner of Attune.

Attune’s research found that words do not equal thoughts. Images and metaphors do, like in the car example above. The image in your mind’s eye might be your own car. It might be a dream car. It might be a car from a previous life experience. That’s because the mind is searching for something familiar.

“Linking what you don’t know to what you do know is a metaphor,” said. Bourdeau. “Words transfer or communicate that particular image or metaphor.”

Now think of the term credit union. What are some images that may come to consumers’ minds when they hear that? It could be money, a credit card, maybe a stack of unpaid bills, or perhaps a house or car or something else they obtained with credit. Maybe it’s a union atmosphere, such as a blue collar work environment. Like anything else, a credit union ends up being defined in consumers’ minds based on what they already know, not on what you’re trying to tell them.

If the words, metaphors and pictures you use to communicate your marketing message are not in line with their thought processes, your message will not be effective. Even if you’re trying to change their perception, you have to start with images they relate with and use those images to create a new perception.

“Marketers tend to use surveys and focus groups to figure out what consumers are thinking. Focus groups may scratch the surface of the subconscious, but they never really get to the deeper reasons why people make the decisions they make,” said Jiao Zhang, the other founding partner of Attune. “We get so deep into the subconscious that people get very emotional. It’s not uncommon for them to cry and really open up to us.”

What comes to mind when you hear the word car? Do think of the word car or do you see an image of a car? What does that car look like? Is it your car or is it someone else’s car?

These are the kinds of questions partners from Attune ask during a typical interview session with consumers. Attune has developed a new marketing methodology based on how the brain processes information. Their research reveals two important details about the way people think:

1. People think in images and metaphors


2. People make 95 percent of their decisions subconsciously.

“Our senses process more than 11 million bits of information per second. Our consciousness can only process 20 - 40 bits per second, from all sources. We make decisions constantly without being consciously aware of it,” said Maya Bourdeau, founding partner of Attune.

Attune’s research found that words do not equal thoughts. Images and metaphors do, like in the car example above. The image in your mind’s eye might be your own car. It might be a dream car. It might be a car from a previous life experience. That’s because the mind is searching for something familiar.

“Linking what you don’t know to what you do know is a metaphor,” said. Bourdeau. “Words transfer or communicate that particular image or metaphor.”

Now think of the term credit union. What are some images that may come to consumers’ minds when they hear that? It could be money, a credit card, maybe a stack of unpaid bills, or perhaps a house or car or something else they obtained with credit. Maybe it’s a union atmosphere, such as a blue collar work environment. Like anything else, a credit union ends up being defined in consumers’ minds based on what they already know, not on what you’re trying to tell them.

If the words, metaphors and pictures you use to communicate your marketing message are not in line with their thought processes, your message will not be effective. Even if you’re trying to change their perception, you have to start with images they relate with and use those images to create a new perception.

“Marketers tend to use surveys and focus groups to figure out what consumers are thinking. Focus groups may scratch the surface of the subconscious, but they never really get to the deeper reasons why people make the decisions they make,” said Jiao Zhang, the other founding partner of Attune. “We get so deep into the subconscious that people get very emotional. It’s not uncommon for them to cry and really open up to us.”