Marketing is an investment, not an expense
It happens all the time — when budgets get tight, marketing is often one of the first things to be cut.
This is especially common among smaller credit unions. My theory? CEOs and CFOs of smaller credit unions may not fully appreciate the value of marketing the way their counterparts at larger credit unions — and many banks — do.
To be fair, the impact of marketing investments may not be as immediately visible in smaller institutions. Or perhaps the quality and execution of these marketing efforts aren’t as effective, leading to less dramatic results. The reality is that smaller financial institutions lack the deep pockets of larger ones, making it harder to attract and retain talented marketers. Inexperience and a lack of seasoned professionals can contribute to weaker outcomes.
As a marketing professional with years of experience across various industries and organizations, I know firsthand that when done right, marketing has the power to move mountains.
Smart Marketing Matters More Than Big Budgets
Effective marketing isn’t just about spending a lot of money — it’s about spending wisely. A skilled marketer understands three key factors:
- The right message – One that is compelling and relevant.
- The right time – When the need is most apparent.
- The right delivery method – Using the most effective channels.
Too often, marketing is approached like a spaghetti dinner—throw a bunch of ideas at the wall and see what sticks. Or worse, organizations copy what everyone else is doing without strategy or differentiation.
Good marketing stands out. It delivers a message that resonates, cuts through the noise, and aligns with what people want and need. The key is to meet your members where they are — whether that’s social media, radio, websites, digital ads, or even direct mail. Leveraging data to understand how your audience prefers to receive information is crucial. Once you have those insights, use them to guide your marketing efforts.
Banks See Marketing as an Investment — Credit Unions Should Too
The banking industry tends to view marketing as an investment rather than an expense. Why? Banks often hire professionals with expertise in consumer psychology and data-driven marketing strategies. In contrast, credit unions often rely on their mission — the “credit union difference” and the philosophy of ‘people helping people’ — to attract and retain members. While this message is important, it’s not always enough to compete in a crowded financial marketplace.
Consumers have many choices, and marketing influences their decisions. Credit unions don’t need to abandon their values, but they must become more strategic and effective in their marketing efforts. Simply believing “if we build it, they will come” is not a strong enough strategy.
The Solution: Smarter Marketing Talent & Outsourcing
For credit unions to succeed, they must prioritize marketing by investing in experienced professionals. This might mean:
- Hiring talent from outside the industry to bring fresh perspectives.
- Outsourcing marketing efforts when internal resources are limited.
- Considering a fractional CMO—a part-time marketing executive who knows what works, what doesn’t, and how to make the most of marketing dollars.
Not every credit union needs a full-time Chief Marketing Officer (CMO) or a large, costly marketing department. But every credit union does need a strong marketing strategy to attract new members and retain existing ones.
You Can’t “Unmarket” Your Way to Success
Credit union CEOs and CFOs must realize that you can’t grow by cutting marketing. If you want to increase membership, improve loyalty, and drive revenue, you need to invest in smart, effective marketing.
It starts with having a realistic and focused plan.
- Who is your target market/audience? Who are you trying to reach?
- What message resonates with that audience? What is your call to action (CTA)?
- Do you have the products and services the audience wants and needs?
- What is the best media to reach the audience (e.g., social media, radio, print, outdoor, digital, etc.)?
- What is your goal (e.g., # new members, # products per member, $ increased revenues, etc.)?
- How much do you plan to spend/invest?
The next step is preparing your campaign and tactics.
- What content do you need to create?
- What media partners must you utilize to reach the audience and with what frequency?
- What is the process for managing, monitoring, and measuring results?
Finally, you must execute and prosper. Be ready to adjust and adapt as results roll in. For example, if one channel or message is getting better results than another, shift resources to where you’re getting the best response and returns. Don’t be afraid to step outside of the box. The market will tell you what they favor and what they don’t. Follow the market, don’t fight it.
Plan. Prepare. Prosper.
Based in Tucson, Arizona, Bergstrom Consulting Servicing provides CMO-level support to small and medium-sized credit unions across the U.S.
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