Strive for ‘Top of App’ Status10.04.2017
Credit unions are seeking placement of their cards not only at the “top of wallet” but also “top of app” in a mobile ecosystem that is making physical credit cards look like the financial world’s antiques.
The stakes are high. Influencing members to use your credit union’s cards for recurring payments such as Netflix, cell phone, cable TV, and iTunes represents a powerful source of interchange.
Building digital marketing and analytics muscle is important for credit unions aiming to make their cards “stickier” and more widely used.
Amy MacMullen, senior project manager at CO-OP Financial Services, acknowledges the difficulty of competing with Chase and Capital One, and their vast marketing budgets. But she says that’s no reason to ignore marketing’s importance. “You have to do it to stay ahead of the game,” she says. “Being as strategic as possible in messaging—and who you’re messaging to, and when—is absolutely critical.”
John Best, payments expert and founder/CEO of Best Innovation Group, a CUNA consulting partner, says credit unions need to become more adept at 21st-century marketing and use data science to their benefit. He often asks credit union officials if they would notice whether a member who travels frequently suddenly stops using the credit union card for those expenses—and whether the credit union would contact the member to win back that business.
“I have yet to find someone who says, ‘Oh yeah, we’d call you,’” Best says. “Interchange represents 26% of the average credit union’s income, and yet we wouldn’t notice if a high-profile user just walked away? The survivors are going to be those who treat this as valuable income, and curate it.”
(via Credit Union Magazine)
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