CUNA Membership Growth Task Force

1. CUNA Membership Growth Task Force

2. CUNA Membership GrowthTask Force Purpose To investigate, report on and encourage credit unions to embrace opportunities, techniques and processes that will increase membership retention and growth

3. CUNA Membership GrowthTask Force Five Sub-Groups • National Awareness and Image • Markets • Best Practices • Efficiency and Back Office Issues • Growth Metrics

4. National Awareness and Image Sub-Group – Members • Gayle Gustafson, Leader (OR) • Lamoura Munse (IN) • Mark Outler (GA) • Kelly Schermerhorn (OH) • Mark Wolff (CUNA) • Mike Weber (CUNA Marketing Council)

5. National Awareness and Image Sub-Group – Issues • What messages should we use to create awareness and generate consumer interest? • How can messages be communicated, funded and promoted? • How do we get the market to understand and believe in what CUs do? • How do we ensure a long-term focus on differentiating CUs?

6. National Awareness and Image Sub-Group – Findings • National branding campaign problematic for a variety of reasons • acceptance – brand is unique for each CU • Awareness and image campaign is a better solution to meet the objective • Based on preexisting research, message focus should be trust, respect, care about members (should not be membership or not-for-profit status)

7. National Awareness and Image Sub-Group – Next Steps • More consumer/CU research and focus groups to define message • Determine demographic target – multiple messages might be needed • Promote national image campaign to the industry – framed as membership growth strategy • Secure funding commitments • Test five state campaigns using on-line methods • Viral campaign to CU employees/family/friends

8. National Awareness and Image Sub-Group – Next Steps If a national campaign is not practical at this time, other near-term options to consider include: • Conduct new research on the most effective messages for key audiences • Establish an online resource center to share best practices and materials • Create new materials for league and credit union use • Explore “New Media” options (e.g., YouTube, Google, My Space, blogs)

9. Markets Sub-Group - Members • Winona Nava, Leader (NM) • Roberta Kozlowicz (IL) • Jon Haller (CUNA) • Heather Thiltgen (CUNA Mutual)

10. Markets Sub-Group – Issues • What markets do we now serve? • Can we do better in existing markets? • Do we need to modify products services and/or channels? • Are there new opportunities to serve other markets? • Are there regulatory/legislative hurdles?

11. Markets Sub-Group – Findings • Challenges are large and growing, but significant opportunities exist within current FOMs: Only 15% of eligible members have joined • Three key new markets: 1. Youth 2. Immigrant/ethnic groups 3. “Underserved” A keen focus is vitally important – difficult to do all of this at once – individual market demographics & potential FOM considerations are key • Products, services, marketing and culture must change • Legal/regulatory hurdles are obvious • Other hurdles also matter

12. Markets Sub-Group – Next Steps • CUNA/leagues/peers should encourage CUs to develop more community partnerships • Encourage more participation in REAL solutions • CUNA must continue push to change laws/regs to make service to these markets easier • Remove/increase loan rate caps • Underserved area expansion for non-multiple group CUs

13. Best Practices Clearinghouse Sub-Group – Members • Mike Schenk, Leader (CUNA) • Steve Delfin (NCUF) • Heather Thiltgen (CUNA Mutual)

14. Best Practices Clearinghouse Sub-Group – Issues • What needs to be done to get CUs to contribute and use a database for best of breed ideas? • Program explanations – detail • Metrics • Staff/board roles • PR successes • Social responsibility • Acquisition/retention/penetration strategies • Best method

15. Best Practices Clearinghouse Sub-Group – Findings • Broad/sustained participation is key • Essential to provide details so others can replicate • Results orientation: we did “x” and got “y” • Easy access/logical organization • Include staff names (notoriety will help) • Many resources now exist • CUNA (CU360, CU Magazine, Task Force email, listserves) • NCUA – CU Connection – revamped PALS • State leagues (GACUA list of thought-starters) • Councils

16. Best Practices Clearinghouse Sub-Group – Next Steps • CUNA E&S identify fast growers • Merger-adjusted • Consider indirect lending influences • Develop questionnaire to standardize content • Create database using direct contact by NewsNow staff • Post at least one weekly in NewsNow • Allow readers to rate/submit idea/recommend others • Explore a searchable database of archives

17. Efficiency & Back Office Issues Sub-Group – Members • John Murphy, Leader (ME) • Mike L’Ecuyer (NH) • Gary Furtado (RI) • Bob Hoel (Filene)

18. Efficiency & Back Office Issues Sub-Group – Issues • What can be done to facilitate CUs becoming more efficient, reduce costs and focus more resources on product and service delivery? • How can we consolidate routine functions? • What are the options? • Out-sourcing • Co-sourcing • Franchising

19. Efficiency & Back Office Issues Sub-Group – Findings • Freeing up resources to help growth is increasingly important • There are many notable examples of successful collaboration, but failure is not unusual – true both within and outside the CU movement • No “magic formula” exists, but several things seem to increase likelihood of success: • A common DP system seems to help (not essential) • No one collaborator dominates (similar-size sometimes helps) • Geographic dispersion (i.e., little FOM overlap)

20. Efficiency & Back Office Issues Sub-Group – Findings • CU (non-scientific) Survey – to Councils • Most don’t do this now (15% provide to others) • Most say they are interested in doing something • Areas include: DP; marketing; payroll/accounting; compliance; services (e.g., lending support, loan/share draft processing, audio response); training and education • Concerns – 25% say “no concerns;” those with concerns site: cost, privacy/security, accountability/control, competition/FOM overlap • State League Survey • Many do something now – still processing

21. Efficiency & Back Office Issues Sub-Group – Next Steps • Encourage state leagues to play an active role – huge potential to help, especially with small CUs • CUNA’s role should be information clearinghouse rather than facilitator • Establish “smart-growth” (collaboration) forums – GAC? ACUC? State League annual meetings, etc. • Establish web-based collaboration clearinghouse • More survey work is needed – provision vs. participation vs. “interest”

22. Growth Metrics Sub-Group – Members • Rod Staatz, Leader (MD) • Heather Hiltgen (CUNA Mutual)

23. Growth Metrics Sub-Group – Issues • Define growth metrics • Measures • Product & service standards (linked to brand) • Impact on financials/interaction with regulators

24. Growth Metrics Sub-Group – Findings • No single metric will do the job • Some are now publicly available • But others will have to be generated • Adjust for influence of mergers/indirect • FOM/location/business orientation will influence • Growth will normally come at a cost • CUNA: avoid Moonshot-like national goals

25. Growth Metrics Sub-Group – Next Steps • Prepare stakeholders for lower earnings • Stress importance of business plans • CUNA keep conversation with NCUA going (elimination of CAMEL matrix has helped) • CUNA: develop “standards report” with key measures and descriptions of best practices

26. Follow Up • Staff draft a comprehensive preliminary report • Call for input from CUs/leagues • AGM/GAC breakout • Meetings to get feedback • National Marketing Council • Spring state league annual meetings • Finalize report