Credit unions are member-owned entities, lending them unique leverage with their customers. A cause marketing strategy could be the most effective tactic in your advertising toolbox. With these cause marketing tips, your credit union will attract more customers while deepening your relationship with your current members.
Establishes a Local Presence
When you consider your credit union a local entity, it helps you learn what's important to your community. Backing that up with a human personality can differentiate you from banks and even other credit unions. Not every credit union uses cause marketing for advertising itself, which leads to many missed opportunities.
This marketing tactic targets the customer's need to contribute to a worthy cause while supporting their favorite business. According to a recent consumer report, 71% of millennials would pay more for a product if that purchase supported a charity. Eighty-three percent also said they would only do business with companies that shared their core values.
As a credit union, you're already a nonprofit organization that puts the needs of its members first and foremost. Banks are expensive institutions to run, so they need to focus on turning profits. However, customers that value community support first are more likely to support charities with your credit union's name attached. They can rest assured that those proceeds are going to both the charity and beloved community members.
With social media, establishing local support is easier than ever. You can reach out to your customers with Facebook posts asking what causes are most important to them. Email marketing is another important tool to keep customers informed about special awareness months and upcoming charity events that you're hosting.
Nurtures Community Partnerships
When you host an event with a similar business, it shows that you care for your community members on a granular level. Pay attention to the company accounts your existing customers follow on social media when choosing a partner. You can also send out surveys to see which brands your customers support the most.
Finding a like-minded company that shares your existing customer base is likely to generate new leads. However, try to steer away from direct competitors, like other credit unions or banks. A complementary partner should also serve the community, like a local library or community housing program.
A long-term partnership is not only beneficial for customer retention and community awareness. In fact, 49% of companies that engaged in partnerships saw significant revenue increases. Twenty-three percent of that revenue was gained directly from the partnership, and 45% of business leaders also said that partnerships increased their brand awareness.
Partnering with another business shows your local community that you're not just interested in pushing your company. It brings awareness to higher causes and increases the amount of money your chosen charity will receive.
Best of all, these charity events don't need to be huge to make an impact on your customers. Your audience will see your effort to give back to the community and be satisfied, regardless of how much money you raise. Sponsoring small community or neighborhood charities can be more beneficial to locals in need. These organizations probably don't have the nationwide notoriety of more prominent charities and thus need more support.
Supports Your Community
In today's uncertain times, more people use credit unions to take out essential loans for their families and businesses. The total of credit union memberships increased by 3.37 million in one year. Credit unions are more likely to give loans to local community members who don't have high salaries.
Banks sometimes shy away from these customers because of the higher loan default risk, which sometimes proves a detriment. The average loan portfolio of U.S. banks had a lower growth rate from September 2019 to September 2020. It increased by 4.9%, while credit unions saw a loan growth of 6.6%.
Unlike most banks, credit unions are also open to more flexibility and negotiations regarding loan repayment dates. There are also greater percentages of credit unions in low-income areas and places with diverse demographics compared to banks.
Although the risk is higher lending to individuals with low income, credit unions value the reward of happy community members. This is even more apparent when credit unions partner with local charities and non-profits. It cements the fact that your credit union is a trusted entity that promotes goodwill.
How to Market Your Credit Union With a Media Partner
A credit union can utilize cause marketing with an established local presence, meaningful partnerships, and a drive to serve the community. Still, it can be hard to juggle the needs of your community while trying to run a successful advertising campaign. A media partner can assist you with finding great partnerships and creating a top-notch cause marketing campaign.