In the final session of the Customer-led Growth Summit, Michelle Markham, Marketing Manager at SkyOne Federal Credit Union, shared valuable insights on leveraging referral programs to drive membership growth in the competitive financial services industry. Let’s dive into the key takeaways from her enlightening discussion.
The Challenge: Acquiring New Credit Union Members
Michelle highlighted the difficulty in acquiring new customers, or in the credit union world, new members. People tend to be set in their ways and feel comfortable with their current financial institution. This challenge sets the stage for innovative customer acquisition strategies.
Leveraging Existing Members for Growth
SkyOne found that their existing members are their best resource for growth. Michelle emphasized, “Our members are our best resources.” This realization led them to partner with Extole to create a robust referral program that taps into their current membership base.
Key Strategies for Success
- Robust, Automated Referral Program: SkyOne transitioned from manual referral processes to Extole’s automated platform, allowing them to scale their efforts efficiently.
- Personalized Touches: In an age of savvy consumers, personal touches are crucial. SkyOne uses Extole to identify super advocates and tailor their approach accordingly.
- Burst Offers: SkyOne implements timely “burst” offers, doubling referral rewards during strategic periods to offset membership attrition.
- Partnerships: They’ve collaborated with other vendors, like CU Travel, to create unique referral opportunities that add value for members.
- Concierge Program: SkyOne developed a unique “Refer a Concierge” program for their Business Development Officers, allowing them to build their book of business through referrals.
- Innovative Campaigns: They’ve run creative campaigns, such as having members nominate their favorite teachers for awards, fostering community engagement alongside referrals.
Maintaining the Personal Touch in a Digital World
Michelle stressed the importance of maintaining a personalized approach, even in digital interactions. This aligns with the credit union ethos of “by the people, for the people.” Whether through branch visits, live agents, chat, or contact centers, SkyOne strives to maintain this personal touch.
Impressive Results
The partnership with Extole has yielded significant results for SkyOne:
- 508 new memberships opened in 2023 through Extole programs
- Cost per acquisition of $161, well below their average of over $200
Looking Ahead
As competition intensifies and the economic landscape evolves post-pandemic, SkyOne and Extole continue to innovate. Michelle emphasized the importance of understanding members’ financial journeys and offering aligned products and services.
In conclusion, SkyOne’s experience demonstrates the power of a well-executed referral program in driving credit union growth. By focusing on personalization, automation, and continuous innovation, financial institutions can harness the full potential of their member base to fuel sustainable growth.
