73% of Credit Unions Have Died but There’s More Opportunity Than Ever

73% of CUs Have Died but There’s More Opportunity Than Ever

Number of Credit Unions (Year End)

1970 2014

6,513

23,687

73% Decline Since Pinnacle in 1970

Source: CUNA Report Year-End 2014

Number of Credit Unions (Year End)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

6,5136,7957,0707,3517,6057,8308,0898,3968,6629,0119,436

30% Decline, 2004-2014


3.03% Decline AnnuallyNumber of Credit Unions (Year End)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

6,5136,7957,0707,3517,6057,8308,0898,3968,6629,0119,436


20%

80%

96% of “deaths” were actually mergers

Source: ncua.gov, “Truth in Mergers”

CU industry isn’t really dying, it’s growing:

(In Thousands)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

101,46098,37995,96893,98992,61991,99790,73689,32488,22287,01486,050

17.9% Membership Growth


And 71.3% Asset Growth(In Billions)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

1,1451,084

1,043982

934903832

777732700668


Growth Opportunity for Your CU

=CU Industry Growth

How can you capitalize on this growth opportunity?

How have other organizations achieved massive growth?

Median 2-Year Growth Rate

0%

25%

50%

75%

100%

Avg. Company High Growth Firms

Average Company Growth

15x more

100%

6.6%

Source: Hinge Research Institute


0%

25%

50%

75%

100%

Avg. Company High Growth Company

Average vs. High Growth

6.6%

100%



0%

25%

50%

75%

100%


Growth Difference

15x faster

100%

6.6%


Median Current Profitability

0%

7.5%

15%

22.5%

30%

Avg. Company High Growth Firms

Average Profitability

2x more

27.5%

12.5%



0%

7.5%

15%

22.5%

30%


27.5%

12.5%

Average vs. High Profitability



0%

7.5%

15%

22.5%

30%


Profitability Difference

2x more

27.5%

12.5%


What do high-growth companies know?

Need Recognition

Information Search

Evaluate Alternatives

Purchase

They Know the Buying Process

Need Recognition

Information Search

Evaluate Alternatives

Purchase

And that customers complete 60% without you

Source: Harvard Business Review, “The End of Solution Sales”

20%

80%80% of customers

start online

Source: GE Capital, Driving shopper engagement through digital technology

0%

25%

50%

75%

100%

Average Company High Growth

Online Leads Other Leads

63%

Avg Co.’s Get 12% of Leads from Internet


12%

0%

25%

50%

75%

100%

Average Company High Growth Company


63%

12%

Versus 63% for High Growth Co.’s


0%

25%

50%

75%

100%

Average Company High Growth Company


5x more63%

12%

High Growth Co.’s Get 5x More


How can you generate more leads online?

The Simple Answer:

The Simple Answer:

Get more web visitors

to submit contact info

The Simple Answer:

Get more web visitors

A Useful Analogy:

Imagine you’re a fisherman

This is your prized catch

And your (not so) trusty net

When they meet…

You catch only one fish :(

To catch more fish, what should you

do first?

What should you do?

1 Fix your net!

Fix your net!1

2 Find more fish!

What should you do?

1 Fix your net!

2 Find more fish!

3 Dance!

What should you do?

1 Fix your net!

2 Find more fish!

3

What should you do first?

Dance!

1 Fix your net!

2 Find more fish!

3 Dance!

What should you do first?

What does fishing have to do with

CU growth?

VisitorsWebsite

Leads Captured

CONVERSION RATE is a measure of

website effectiveness

Website Visitors÷Leads

Website Visitors÷ Conversion

Rate=Leads


Rate=Leads

1


Rate=Leads

1 100


Rate=Leads

1 100 1%

How can you improve conversion?

Fix your net!

= Online User Experience

Fix your net!

user experience:noun

the overall experience of a person interacting with your brand online

Source: Dictionary

=User Experience

Conversion Rate

How to Improve User Experience

Design & Development Research

NurturingContinuous Improvement

User Experience

User Experience



User Experience

Develop personas!

Who are your members? !

What is important to them?!

Understand Your Members

User Experience

Hook (i.e., Stadium Speech)!

Problem or Need!

Evidence (e.g., market data)!

Solution (Start with Why: What do you believe?)!

Invite to Act!

Education-Based Marketing

Develop personas!

Who are your members? !

What is important to them?!

Understand Your Members

User !Experience


Nurturing Continuous!Improvement

Design discovery!

Web and graphic design skills

Design

User !Experience



Design discovery!

Web and graphic design skills

Design

Content strategy and development!

Website programming (e.g., HTML, CSS, PHP) !

Content Management System (CMS) (e.g., WordPress)!

Development

See what people do on your website!

Conversion rate metrics!

Example: Google Analytics!

Behavioral Research

User !Experience

Design & !Development Research


See what people do on your website!

Conversion rate metrics!

Example: Google Analytics!

Attitudinal ResearchUnderstand why people do what they do!

Learn user’s beliefs!

Example: intercept surveys

Behavioral Research

User !Experience

Design & !Development Research


Re-engage leads and current members!

Customer Relationship Management System (CRM)!

Example: smart email marketing

Customer Relationship ManagementUser !

Experience

Development Research

Nurturing

Re-engage leads and current members!

Customer Relationship Management System (CRM)!

Example: smart email marketing

RetargetingRe-engage website visitors!

Example: Google Retargeting Ads

Customer Relationship ManagementUser !

Experience


Nurturing

User !Experience


Continuous!Improvement

Continuous Improvement

Create a long-term plan to accomplish growth goals!

Release improvements and updates regularly!

Implement new UX initiatives and technologies

Long-Term Plan

User !Experience


Continuous!Improvement

Create a long-term plan to accomplish growth goals!

Release improvements and updates regularly!

Implement new UX initiatives and technologies

Ongoing Conversion OptimizationCalculate conversion rates!

Continually run experiments to improve conversion!

Example: a/b test

Long-Term Plan

Continuous Improvement

User Experience



Get Started: Answer 3 Questions


1 What is your website’s Conversion Rate (CR)?



2 How will you improve your website’s CR?



2 How will you improve your website’s CR?

3 If your CR doubled, what would be the ROI?

Worksheet

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73% of Credit Unions Have Died but There’s More Opportunity Than Ever

Marketing

Transcript of 73% of Credit Unions Have Died but There’s More Opportunity Than Ever