It inevitably happens at some point in every credit union planning session, and for most it will happen sometime in the next few weeks.
The discussion will start with an innocent question,such as: “How can we attract more members from the younger generations–they are our future?”
From there, it will go downhill because everyone in the room will unconsciously make one simple, understandable, and easy mistake…a mistake that is not acknowledged and given sufficient weight in the discussion.
Here’s why it happens.
We see the market and the credit union’s membership from where we are in the market. Simply stated: We forget the old sales adage that to sell Jane Smith what Jane Smith buys, you have to see Jane Smith through Jane Smith’s eyes.
The result is that our discussion about how to reach new members is biased and ineffective. No matter how hard we try, we cannot understand what others want unless we ask them and listen to what they tell us, or analyze their behavior and see what they actually do.
So we explore ideas and options based on our perspective of what the credit union offers, how it has impacted us and those we know, and what we believe it can do for others in the future.
In plain language, this is A VERY BAD IDEA!
If we seriously want to define a strategy for reaching the next generation of members, we need to engage them in the conversation. Not only will it help us understand what they really want, but it will also be an important first step in building relationships with them. Remember, these people we are trying to reach have grown up in a collaborative world where their opinions matter…reaching out and giving them a chance to share them has more value than most of us realize.
ACTION ADVICE: Before your next planning session, consider taking these steps as you plan to plan so that you are better prepared to address this inevitable question more effectively:
1. Conduct a few focus groups or do some survey work via social media to learn what your current and prospective younger members want from your credit union;
2. Analyze your current membership data and identify the habits and behaviors of your current younger generation members…what products and services are they using, how often do they come into the credit union, how heavily do they use your online services, and so forth. Document the results and use them as a baseline for understanding the behavior of those you have already attracted to reveal how you can attract more of them.
3. Invite a broad spectrum of members to an informal reception with your Board prior to the planning session. Serve some refreshments, let the people mingle, and focus the conversation on what they like, what they don’t like, and what they want from your credit union. Summarize the knowledge gained and use it to make better decisions at your planning session.
It’s Your Turn…What do you think? How can your credit union avoid making this common mistake? Any Gen Y or Millennial readers care to share your insights on how to handle this? Who will post the first comment and get the discussion started…?
Great post again sir! Once again we share the same thoughts. I can’t tell you how many times I have seen this happen and how frustrating it is.
It seams that every fall CUs get all gung-ho and excited about “we have to get younger members”. And then… it stops there. Others thing come before this objective. No clear vision is put in place. And assumptions are made.
We must STOP doing this as I have seen this cycle happen now for the past 3 years.
Connecting with Gen Y takes a marathon mentality… not a sprint. It’s also important to remember that Gen Y does not equal social media.
Here are four quick steps that can help you get off on the right foot for a marathon race:
- Connect
- Create
- Communicate
- Continue
Many times credit unions will jump into the “create” phase before connecting and figuring out a plan or strategy and then get frustrated and quit the marathon because they are not achieving success.
But you can’t stop there as connecting with Gen Y is not a one time campaign but a life long commitment.
Well said James Robert! You’ve hit the key underlying challenge…making the long-term commitment to run the marathon and build the relationships. It takes a strategy, it takes a commitment, and it takes a willingness to adapt the approach until you find what works with your members.
Frankly, what needs to be done is a bit like what happens in my favorite sales book of all time: Green Eggs and Ham. If you think about the story, there was a person who did not like something they were being offered, but the offerer kept changing the offer and listening to the feedback…until finally they hit on a combination that worked. That’s what every credit union needs to do to connect with Gen Y…ask questions, listen, change the offer, ask more questions, listen more, and repeat until a mutually satisfying solution is reached.
We were working with a credit union to connect with Gen Y but the plug was pulled before anything could really gain traction or see results. Why? B/c what was done to date had satisfied the check list on the BOD strategy.
They said they were shifting their focus to start focusing on things that would get them results now.
However, for those who have run the race with us, the results are crazy and very positive. CUs must stop looking at the here and now, the monthly or 3 month campaign, but a much longer strategy.
Sounds like the “strategy” was not a strategy at all, but a tactic, or perhaps an operational objective.
The reality is that strategy has to be long term. And if growth and survival are a part of the strategy, then running the marathon with those who will be the members in the future is the key. Because no matter how you look at it, your core members today will not be the ones who keep your credit union successful in 5, 10, or 20 years. Period.