http://blog.markarnold.org/2010/07/niche-marketing-leads-to-succes
In a recent session at Southwest CUNA Management School on “Advanced Branding for Credit Unions,” we had a passionate discussion about whether small credit unions can compete against larger ones. The answer: niche marketing. Size doesn’t matter—niches do.
Successful credit unions (no matter the size) target niche groups. Your credit union cannot be all things to all people. It might be families, single moms, seniors, Hispanics or one of a dozen other demographic profiles.
The key is to pick three or four groups and become a financial service provider leader for them. Your credit union is better off being the number one choice of a small subgroup than the fifth or sixth choice of a larger group. The smaller, niche group tends to be more loyal to you.
For example, I conducted a long-range planning session followed by a brand plan for Heart of Louisiana Federal Credit Union. During that process we determined the credit union was challenged by trying to serve too wide of an audience. We chose to focus on blue collar workers, professionals and residents near one of their branches.
“Focus is critical to our brand and credit union’s success,” said Cindy Beauregard, CEO of Heart of Louisiana FCU. “We were able to identify specific niches we were good at serving. Instead of focusing in every direction we now target similar subgroups, which leads to better results.”
So what are a few emerging niche groups your credit union might want to consider targeting? Here are a few to consider:
(1) Minorities/new immigrants
(2) Low wealth/underserved
(3) Small businesses
(4) Young adults
(5) Mompreneurs
(6) Prime Time Women
Astute marketers will notice that these unique groups might require unique lending situations. These target groups are getting loans somewhere: the question is, are they getting them from your credit union?
It’s also important not to put all your eggs in one basket. Multiple targets could shield you from possible economic downturn in one particular industry.
Big or small, all credit unions can compete—just find your niche.