Lake Michigan Credit Union Internship Report

Marketing Internship Report Winter 2016 Â

Presented By: Sarah Harken

Table of Contents Social Media Overview……………………………………………………………………………………………………………………………….………………..3-5 Millennials…………………………………………………………………………………………………………………………………………………….…………..6-11 Competitor Analysis……………….………………………………………………………………………………………………………….………………….….12-17 Google Listings…………………………………………………………………………………………………………………………………………………….….18-19 Recommendations…………………………………………………………………………………………………………………………………………………..….…20 Twitter Stats………………………………………………………………………………………………………………………………………..…………………………21 Posts………………………………………………………………………………………………………………………………………………………………….22 Facebook Stats…………………………………………………………………………………………………………………………………………………………………..23 Posts………………………………………………………………………………………………………………………………………………………………….24 Survey & Moderator’s Guide……………………………………………………………………………………………………………………………………..25-27 Sources….……………………………………………………………………………………………………………………………………………………………………..28

2

Social Media Social media is a huge part of the marketing world today. More for the best times to post on social media for the highest than one billion people have Facebook accounts and millions are engagement (Pollard, 2015). These vary depending on the active on Twitter. In order to promote content, satisfy consumers audience but generally, on Facebook, Thursday and Friday are the by delivering better customer service, manage reputation, and best days to post and Monday through Wednesday receive the keep up with competition, businesses must have accounts on lowest engagement rates. However, each individual business platforms that their target markets should analyze their Facebook analytics to “Social m edia i s a ll a bout utilize. Active social media accounts determine the optimum time to post to their unique communication which can following. On Twitter, Monday through Friday are with good content will deepen relationships with current customers the best time to reach other businesses if one is in lead to customers’ and attract in new customers, as well. satisfaction and customers' the B2B market, but if not, consumers can best be reached on the weekends and on Wednesdays.

So how does a business create loyalty/retention” Pollard also tells that on Twitter, 5pm, 12pm, and appealing content? By listening to their 6pm generate the highest click-through rates. customers. “Social media is all about communication which can Social media pages should be regularly monitored, responding to lead to customers’ satisfaction and customers' loyalty/retention” comments, questions, reviews, and concerns posted by customers (Kirakosyan, 2014). It is important that a business does not only on the page. promote content, because doing that will not help build relationships with customers. There are two types of posts: on topic and off topic (Coles, 2015). On topic include those that relate to the business and industry. Off topic are random posts that can be used to generate engagement and conversation. “In having right strategy of SM management banks can reach their primary objective, they can reach the largest number of potential customers, they can strengthen the brand and build a good reputation among the biggest potential market in the world,” (Kirakosyan, 2014). In order for financial institutions to do this, they must have a mix of both on and off topic posts.

Catriona Pollard, director of an Australian PR and social media agency, CP communications, compiled a list of general guidelines

3

Social Media at LMCU Managing social media for a financial institution can be a challenge. It is difficult to create appealing content when a business sells products and services that are not tangible or top of mind for consumers. This challenge can be overcome by harnessing the power of social media trends, offering tips, and generating content that provides educational value. The following pages include stats and posts surrounding the Lake Michigan Credit Union Facebook and Twitter pages within the months of January to April of 2016.

Likes as of 1/11/16: 14,447 Likes as of 4/13/16: 17,061

Insert analytics from Jan 11 to April 11

Followers as of 1/11/16: 2,438 Followers as of 4/13/16: 2,670

4

5

Millennials The age group ranging approximately from 20 to 34 are considered Millennials. This unique generation tends to be a target market for many companies, as they make up a large part of society and are constantly searching for innovative products and ways to improve their lives. For credit unions and banks specifically, Millennials are a major target because they are reaching milestones that result in auto loans, mortgages, and credit cards. It is necessary for these financial institutions to fully understand them in order to successfully market to them.

Characteristics General

In the Workplace

Commerce

Finances

•

Confident

•

Desire structure

•

Experience matters

•

3/4 are worried about their financial situation

•

Proud

•

Respect positions and titles

•

•

More than half live paycheck to paycheck

•

Independent

•

•

At least 25% have missed a bill payment

•

Tech-savvy

Want a relationship with their boss

Want to know their contribution matters

•

•

Team-oriented

•

Need mentoring

More than 25% have been contacted by a creditor due to a late payment

•

Ability to multi-task

•

•

On average, they have 3 credit cards

•

Believe in going green

Respond well to personal attention

•

76% cannot pass a financial literacy quiz

These statistics demonstrate the need for educational materials on finances targeting Millennials. This presents an opportunity for credit unions and banks, and along with it a challenge. Because this generation is proud and independent, most will not reach out to financial advisors. Credit unions could have an advantage over banks when it comes to this age group because they appreciate an experience and want to know that their contribution matters (Swedberg, 2015). It is easier for credit unions to meet these requirements since many are local and are member owned. In addition, Millennials are in favor of giving back to their societies and many credit unions have strong local ties.

6

Millennials Why Market to Millennials?

How to Market to Millennials

Why is it that financial institutions should invest time and money into marketing to this specific generation? Because they have over $200 billion in annual buying power (Schawbel, 2015). Many Millennials are starting their adult lives: paying back loans, purchasing cars and homes, getting married, having children, saving for retirement, etc. Throughout the next ten years, millions of these customers will be searching for a credit union or bank to provide them with financial products to help them with these needs (White, 2015).

Generational marketing is crucial because each generation differs from the last in terms of buying habits and motivations.

Millennials have changed the world of marketing. The first step for businesses is to get their attention. Nielsen Media compiled a list of nine “attention grabbers” that a business should consider when planning campaigns that target Millennials (2015): -Do something eye-catching. Something that another company has never performed.

-Make sure your content fits the media environment.

-Make your ideas easy to navigate. For example, once MTV did a campaign where all the audience had to do was hashtag in order to vote. This was simple and effective.

-Find a Trojan horse. Relate to their passions, as they interest millennials more than brands and products do.

-Research current ideas and beliefs. Respond to trending topics and events making headlines.

-Respect new platforms and learn about those immersed in them.

-Make it personal. For example, Coca-Colas “Share A Coke” campaign.

-Give them a chance to express themselves online. Urban Outfitters did a great job at this when they implemented an Instagram contest. Customers were to post pictures wearing clothing from the store and hashtag “UOONYOU.” Their prize was appearing on Urban’s Instagram page. It cost this company barely anything, yet created a large social media buzz!

-Plan for the ringleaders.

Generation marketing helps ensure the right message, to the right audience at the right time.

7

Millennials How to Market to Millennials Continued After grabbing their attention, a company must keep them engaged and interested. According to Christopher Paradiso, President of Paradiso Financial and Insurance Service, one must practice the following steps in order to be successful while communicating to this generation (2015): Listen to the conversation. Pay attention to the discussions they have about their workplaces, co-workers, friends, technology, etc. A company can sign up for Google Alerts to see what they are saying.

Create accounts on Instagram, Twitter, Facebook, and other social media platforms. A company should not be “overly corporate and commercial.” Millennials are creative and tend to think outside of the box, so being too professionally strict on social media will not attract them.

Paradiso suggests to “be genuine, real, and let your perspective market understand what you’re really about and what you stand for” (Paradiso, 2015).

Communicate on a personal level. Give them the opportunity to talk with you listening. Providing opportunities to socialize with them is essential.

Focus on a consistent message to build their trust. Make sure to always practice what you preach and stick to doing what you say you are going to do.

Be creative. Creative marketing and advertising stands out.

It can gain momentum very quickly and lead to gaining followers on social media.

Fletcher, from Target Marketing, also provided some useful tips while communicating to Millennials:

Apps may be a brand’s best friend. Citing ComScore discovered that Millennials spend 41% of their media time on phones and 91 hours per month in apps like Instagram, Snapchat, Facebook Messenger, and WhatsApp (Fletcher, 2015). Keep this in mind while choosing mediums to advertise on.

Add value, do not just try to sell to them. According to Cassandra Report, 73% of Millennials believe it is important that a brand is not just trying to sell to them (Fletcher, 2015). It is important to relate to this age group on a personal level, especially over social media. If they believe that your company is just trying to get them to purchase products and services, they will not believe a word you say.

Cross-promote events on social media. For example, Vitaminwater promotes its music festival with the hashtag #uncapped (Fletcher, 2015). Incorporating social media hashtags, contests, and posts in campaigns will prove to be extremely beneficial.

Consider simplifying. Millennials are attracted to ads that are short and sweet. They also love emojis!

If a company is able to truly connect with their target audience of Millennials, marketing and advertising to this generation should make a positive difference in sales 8

Millennials Marketing to Millennials – Credit Union Specific Financial institutions have great opportunity to deepen relationships with their Millennial aged members. This generation is just beginning to make major financial purchases and realize how crucial it is to find a bank or credit union that best meets their needs. The younger Millennials do not have much need in the products and services offered making it difficult for financial institutions to connect with them. Much research has been developed to guide credit unions to establishing relationships with this age group, so that when the time comes for them to acquire mortgages, loans, etc., they will choose to go with the CU that has been by their side since the beginning.

• Financial education is essential. Millennials are extremely uneducated when it comes to finances. The institutions that teach and guide them will be the ones they choose to do their banking through. The University of Wisconsin Credit Union in Madison provides an excellent example of this.

Jaimes Johnson, the director of community and campus relations tells that one of their most effective approaches is "…the financial education that we provide to students on campus. It's not the fact that we do it; it's how we do it. We provide education through financial specialists who have lived the life of a student themselves. The people delivering the content have been there," (Vosswinkel, 2014). Having some type of on-campus program is beneficial for credit unions to begin building relationships with these younger generations.

9

Millennials Marketing to Millennials – Credit Union Specific • Genuine relationships. As previously mentioned, relationships must be built with these members. Get to know them and keep them happy in-between AND during visits.

“They want a productive, technically empowered experience where they feel appreciated,” (Deen, 2015). Interactions must be genuine and not just about selling in order to gain their trust. Below are examples of a couple credit unions that do a great job of exemplifying this: o Connex Credit Union: "We're trying to position ourselves as their financial advocate and not just the stodgy old bank. We're actually here to help you, and we understand that maybe you're new to this…it's all about trying to help educate them and make them feel like they're a member and that's part of what membership provides for you,” (Passman, 2015). o Mazuma Credit Union: Dickhut explained that most banks and CUs lead their marketing with banking jargon and a focus on product features and benefits. "We try to lead with personality first in everything we do," he said.

"You can't just cram information down people's throats anymore. You have to entertain them as well. We try to take the standard banking stuff and wrap it in a different package,” (Passman, 2015).

• Technology and convenience. This is the mobile generation who searches for every way possible to make their lives more convenient. Having all features available to them 24/7 and making transactions as simple as possible will attract them to your credit union.

(Heggenstuen, 2015)

o When not in the branch, they want to be reached through digital media. Therefore, they prefer convenient, online tools such as mobile apps, free personal finance managers, online banking, mobile check capture, and online account opening (Deen, 2015). Having top-notch technology will make all the difference. o “In order to get them into the branch, Credit Unions should adopt high-tech platforms and strategies that ensure the visit will be enjoyable and fruitful,” (Deen, 2015). For example, implementing digital appointment setting and digital lobby sign-in systems. Being able to set up an appointment online instead of having to make a phone call to do it is huge because Millennials do not talk on the phone. Generally, if a Millennial has to make a phone call of some sort, he/she will put it off as long as possible or just not make the call. This is potentially a lot of business lost from such a simple aspect.

10

o An example of true convenience comes from Wescom CU. They set up a mall kiosk as an outreach platform (Vosswinkel, 2014). This was great for opening new accounts and acting as an advertisement for all of their mobile offerings.

• Community based. Credit Unions are perfect for younger generations because of the fact that they are local. These age groups are all about giving back to their communities. They shop, eat, and drink locally, therefore investing in a local financial institution will be more attractive to them.

However, the majority of them do not understand the difference between a bank and a credit union. Explaining the difference to potential consumers will help a CU gain more members.

• Peer-to-peer conversations. Millennials value the expertise of those who are in the same cohort as they. A Millennial himself quoted, “When it comes to financial advice, we are much more likely to trust someone who has walked in our shoes and who understands out point of view,” (Vosswinkel, 2014). It proves to be beneficial to hire one or more Millennials to reach out to others their age. Here are a couple examples of Credit Unions who have done this and succeeded (Vosswinkel, 2014): o $1.4 billion Royal CU: Made an outreach program called Young & Free Royal. They hired a “spokester” to be an “outreach specialist” and travel WI, establishing connections with collegiate communities. o $2 billion Summit CU: Built a youth movement of peers through high school branches and a new scholarship program, Project Teen Money.

CU Millennial Related Stats 40% would stop using cash if they could use their credit/debit card for everything 70% would rather use mobile capture than manually type information into their smartphone 28% want to enroll in services by snapping a picture of their driver’s license 42% switched companies based on what organization allowed users to accomplish on a mobile device 41% of millennials experience chronic stress about money, especially when it comes to saving

11

Competitor Analysis Lake Michigan Credit Union is a very successful and innovative company. Because of this, there are a lot of financial institutions that offer products, services, and features that cannot compete.

LMCU rates beat the majority of other banks and CUs. Though this business excels in many areas, there is always room for growth. After analyzing several other financial institutions, it was noted that some offer features and services that LMCU does not.

Popmoney: Popmoney is a third party payment service that allows account holders to send and receive money to and from anyone, no matter what financial institution he/she banks at. Anyone can utilize this tool, but banks such as Fifth Third, FlagStar, Aspire CU, and PNC offer it to their members up front.

Prewards: Prewards is a feature that West MI CU offers to its members. As a person uses his/her debit card, he/she will receive coupons according to his/her preferences.

Budgeting tools: LMCU has a budgeting tool, but it is not very strong. Incorporating budgeting tools into apps and online banking systems is beneficial because people have a hard time keeping track of their finances. Potential members acknowledge the fact that these specific financial institutions care about their customers and have the desire to help them, which is especially attractive to Millennials. A few banks that do this include PNC, Bank of America, and Wells Fargo. PNC’s virtual wallet program, for example, seems to be very organized and helpful:

12

Competitor Analysis Android/Samsung Pay: These programs are like Apple Pay, but for users of Samsung and Androids. A person who is able to utilize this can pay with their phones at any stores that offer the technology to support it. Bank of America, Chase, and PNC are just a few of the many who offer it.

Much interest for this feature has been shown by the members of LMCU:

Â

13 Â

Competitor Analysis

Â

Student centers: A few banks like Chase, Bank of America, and PNC have student tabs on their websites. If one clicks on this tab, he/she will be brought to a page tailored for students. Information can be found about student loans, student checking accounts, apps, online banking, and other info that is beneficial to students. Some even include financial advise for college.

Â

14 Â

Competitor Analysis Websites: Many financial institutions are beginning to design their websites like blogs rather than traditional websites. This helps make the products and services exciting and easy to locate. The new look attracts Millennials and the younger generations because it is eye catching and simple to navigate.

Michigan First CU’s Website

Â

15 Â

Competitor Analysis Online financial education: As previously mentioned, educating is crucial; especially to the younger members.

Millennials favor technology and convenience, therefore educational tools must be readily available. As Monica Orluk from CU Insight states, the key to capturing the attention and wallets of millennial borrowers is “education and digitization,” (2016). She goes on to explain that “If a lender balances the right amount of education and information with a seamless, digital process to facilitate origination and servicing activity across mobile devices, they can increase the odds that the consumer, particularly the millennial consumer, will not only choose them, but will remain loyal to them for their future borrowing needs,” (Orluk, 2016).

Millennials place much value on education leading to informed decisions. For example, if a Millennial couple just got married and is looking to buy a house, they are going to begin their search online. They may visit LMCU’s website to check out mortgage options. This is where business could be lost. Though the couple can view information about the different mortgages offered, they may not understand what the terms mean or what type of mortgage is best for them. They probably will not click on the “Find a Loan Officer” link or call the general number listed on the page. Instead, they will begin to search other financial institutions. When they visit the page of Michigan First CU, PNC, Chase, etc. they will be satisfied because all of the information they need to know will be right in front of them. Only then will they pick up the phone to make an appointment with an officer.

16

Competitor Analysis

Â

17 Â

Google Listings Accurate Google Listings are crucial to the success of a business.

Dex Media recently ran a “digital presence score” report on LMCU that rated the overall listings, reviews, social media, and website of the company. Though the listings score was above average, it was still rated as “fair” rather than “good.” After completing research on our Google Listings, it was discovered that 74% of the LMCU branches either had hours that were inaccurate or not present, or had a wrong phone number or address. One of the newer branches was not even listed.

This fact presented a major problem. For example, a millennial aged prospect was interested in joining Lake Michigan Credit Union, but was hesitant because the branches near him appeared to close at 5pm. He works on the weekdays until 5pm, so required a financial institution that had later hours. The inaccuracy of the listing stating 5pm rather than 5:30pm caused lost business.

Once the prospect learned of the correct hours, he joined. It will never be discovered how many potential members were turned away because of the inaccurate listings, but this was something that needed to be corrected asap in order to avoid future confusion.

In order to control all locations of a specific company, a Google My Business account must be made. One was recently created for LMCU. Once created, all locations must be added, and then Google has to go through an approval process in order to verify that the administrator has the authority to control the business’ information. This process can be rather complicated, but eventually, all of the listings for LMCU were updated and

published. Now one is able to log into the account to add new branch locations or modify existing ones as needed.

18

Google Listings Example:

Before:

After:

19

Recommendations After analyzing this company and the finance industry, it is obvious that LMCU is a strong credit union with much potential.

It is believed that if the following advice is followed, many new members will be acquired, along with current members being even more satisfied.

• Host financial education events to establish relationships with the older group of Millennials. Educating them on the mortgage process will guarantee business.

• Develop an on-campus program in order to connect with and educate younger millennials and upcoming generations.

• Update the website to look more like a blog. This design is more appealing than standard websites.

• Add a financial help tool in order to assist the many who struggle with controlling their money. PNC’s “virtual wallet” is a great example of this. Even incorporating a budgeting system would prove to be beneficial.

• Offer online appointment setting for appointments in the branch and to meet with mortgage officers. This will pull more members or potential members in by allowing them to set up a meeting with ease.

• Add Samsung and Android pay. Paying digitally has become more popular than ever. If Apple Pay is offered, Samsung and Android should be too in order to satisfy all members, not just a group of them.

• Create an Instagram account. This platform is a main one for the younger Millennials and the upcoming Generation Z. Having a presence on it is important when it comes to reaching and connecting with these ages before competitors do.

20

Twitter Stats First Month Stats

100% increase in engagement rate

311% increase in link clicks

137% Increase in Impressions 233% increase in retweets

775% increase in likes

135% increase in replies

Â

21 Â

Twitter Posts

22

Facebook Stats

The analytic numbers were down in the first month of my internship.

Competing with the previous 28 days, this was not a surprise. “Santa Squad” videos and posts are published in December, so a lot of engagement takes place during that month. Santa Squad is a group of LMCU employees who goes around giving back to the community, so fans enjoy following them through social media. I brainstormed what I could do differently to increase the numbers. After compiling research on what the target audience wants to see, I slowly increased the reach, engagement, and actions on the page.

23

Facebook Posts

24

Survey and Moderator’s Guide To complete primary research on first time homebuyers, the following survey and moderator’s guide were created.

25

26

27

Sources Coles, L. (2014). Marketing with social media: 10 easy steps to success for business. Wiley. Retrieved from http://reader.eblib.com.ezproxy.gvsu. edu/(S(cdj4cg5whgis kclvfsjryynn))/Reader.aspx?p=1767915&o=662 &u=JgJ6SA5oFiYBBldIsUSRoA%3d%3d&t=1453148143&h=7D3F3650 7738DA14CA5CDBFADF27C280DA7691D1&s=41336458&ut=2049&p g=1&r=img&c=-1&pat=n&cms=-1&sd=2# Deen, M. (2015, April 20). Millennial marketing: reaching out to the member of the future. Credit Union Journal, 19(8), 7. Retrieved from http://go.g alegroup.com.ezproxy.gvsu.edu /ps/i.do?p=GRGM&u=lom_gvalleys u&id=GALE%7CA410406377&v=2.1&it=r&sid=summon&userGroup=l om_gvalleysu&authCount=1 Fletcher, H. (2015, September 29). Millennials are direct. Target Marketing.

Retrieved from http://www.targetmarketingmag.com/article/millen nials-direct/ Heggestuen, J. (2015, December 8). The future of the bank branch is in trouble – here’s why. Business Insider. Retrieved from http://www.businessin sid er. com/digital-disruption-of-retail-banks-2015-10 Kirakosyan, K. (2014). Managerial perspective on social media implementation in banking industry. comparative study on romanian and mexican banks. Revista De Management Comparat International, 15(3), 297-311.

Retrieved from http://search.proquest.com.ezproxy.gvsu.edu/docview /1661348 993?accountid=39473 Nielsen Media. (2015, October 13). Millennials are the most trusting when it comes to advertising. Retrieved from http://www.nielsen.com/us/en/ insights/news/2015/millennials-are-most-trusting-when-it-comes-toadvertising.html Orluk, M. (2016, March 31). Connecting millennials to mortgages. Retrieved from https://www. cuinsight.com/connecting-millennialsmortgages.html Paradiso, C. (2015, July 27). Marketing to millenials. Insurance Advocate, 126(13), 20+. Retrieved from http://go.galegroup.com.ezproxy.gvsu.ed u/ps/i.do? id=GALE%7CA425112251 &sid=summon&v=2.1&u=lom_gv alleysu&it=r&p=ITOF&sw=w&asid=817f5d26bd407e60c0060eb7d7b 37841

Passman, A. (2015, June 15). Cupcake and irony: How some CUs attract millennials. Credit Union Journal, 19(12). Retrieved from http://search.proquest.com.ezproxy.gvsu .edu/docview/ 1688294695?pq-origsite=summon Pollard, Catriona. (2015, April 6). The best times to post on social media.

Huffington Post. Retrieved from http://www.huffingtonpost.com/catriona-pollard/the-best-times-topost-on_b_6990376.html Schawbel, D. (2015, Jan 20). 10 new findings about the millennial consumer.

Retrieved from http://www.forbes.com/sites/d anschawbel/2015/01/20/10-new-findings-about-the-mi llennialconsumer/#7f613c728a87 Swedberg, J. (2015). Mortgages for millennials. Credit Union Management, 38(12), 12-15. Retrieved from http://search.proquest.com.ezproxy.gvsu.edu/docview/ 174927 8848?accountid=39473 Vosswinkel, K. (2014). Marketing to millennials. Credit Union Management, 37(10), 58. Retrieved from http://search.proquest.com.ezproxy.gvsu.edu/docview/ 1584363401?

Accounted =39473 White, T. (2015). 5 reasons credit unions should target millennials. Credit Union Times. Breaking News, Retrieved from http://search.proquest.com.ezproxy.gvsu.edu/docview/166109 5215?accountid=39473

28