Best Practice Meeting for Youth Development

Marketing to the Youth Market

Presented by:

Sean Murray

National Youth CommitteeOur Aims:

• Support the ILCU in its mission towards youth development within the movement.– In attracting users of Credit Unions (Members)

– In attracting volunteers to Credit Unions

• Ownership of National Youth Policy

• Work to improve the relevance of Credit Unions to the youth market

• To support Chapter and Credit Union Youth Officers in their roles and ensure their role remains relevant to the current environment

• Provide opportunities for Youth Development Officers to share ideas and network

• Act as generators, evaluators and supporters of new ideas in the area of Youth development

Comments from Last YearGeneral Feedback

– “More Time needed for youth development at Credit Unions”

– “More focus needed on youth and advertising”

– “Advertising campaign needs to be targeted to youth”

– “Would like to see sample marketing material used by other Credit Unions”

– “Would have liked more discussion on approaching schools”

– “Single message needed on a national basis why youth should join Credit Unions”

Main area for NYC to tackle– Address the “How” rather than the “Why” of youth development

– Develop programs that all Credit Unions can participate in

– What should we say to the youth market

“I want simple things I can apply in my Credit Union from this weekend”

NYC Youth BreakdownCategory Age

Profile Education

StageYouth Role in

Money Management

Parents Role in Money

Management

Who Credit Unions should

talk too

What Credit Unions should

talk aboutKids Under 5 Pre Primary N/a Full control of

finances Parents Savings &

EducationTweens 5 to 12 Primary Beginning to have

a say Still heavily involved

Tweens & Parents Savings, Saving Stamps & Education

Teens 13 to 15 Secondary to TY

Having more of a say in finances

Still involved Teens & Parents Education, Savings

Late Teens 16 to 18 Leaving Cert and College

Moving to Independence

Still involved, moving to less involvement

Late Teens & Parents to lesser extent

Education, Savings, Loans

Students 19 to 21 College & First’s – Job, Car, etc..

Independence Possibly as a Guarantor

Students Education, Loans, Savings

Young Adults

21 and Over

Post Education Maturing to individual responsibility

Possibly as a Guarantor

Young Adults Education, Loans, Savings

We do some things well1. Schools Quiz – nationally and locally

2. Poster competition

3. Significant youth activities at local level

• It is up to each Credit Union the success we make of these events.

– We need to have a positive Credit Union message to children and their parents at every opportunity

– Well planned and organised events make a big statement to members and potential members

– Take feedback after the event

Lets be Positive

<= ROIRank 1st

Overall 50% penetration by CU’s

NI =>Rank =3rd

Overall 10% penetration by CUs

Membership in the 15-34 Age Bracket

Can we do better?• Evidence suggest that we need to focus on the secondary

school and young adult sectors

• There is stiff competition with banks to attract members

• The key question is “What can we offer to the this 15 -24 age group?”

• What message do we get out there about Credit Unions to this group?

• Lets focus on the Credit Union message to this Age category

Engagement• A process for how we engage with the 15 – 24 year old

Market

Channels to Market

Acquisition Retention

Consistent Message

Schools

Internet

In our Office

Education on Finances

Build Awareness

Incentive to join

Product Benefits

One 2 One Service

Credit Union Advantage

Consistent Message

Consistent Message

Message First• As Youth Development Officers we

have responsibility for getting the Credit Union message to the 15 – 24 age group.

• We are the owners of that message.

• What do we want young (15 -24) people thinking and saying about Credit Unions?

Analysis of who we are• From Wikipedia (online encyclopaedia – written by online

community)

– A credit union is a cooperative financial institution that is owned and controlled by its members, and operated for the purpose of promoting thrift, providing credit at reasonable rates, and providing other financial services to its members.

• From Wordnet

– a cooperative depository financial institution whose members can obtain loans from their combined savings

• Youth friendly?

• 2009 Ireland friendly?

• Peoples Perception = Our Reality

Demographics• What do you offer an age group like this?

– No money– No interest in saving– Spend Spend Spend…

• Spend now, worry later• Spend without thinking

– Aware of debt issues, but find it difficult to balance savings and spending habits

– Believe they are not good at saving but downturn in economy is having an impact

Simplicity is Key

Explaining the Credit Union

Community based

Run by local people – for free

To serve the needs of local people

Any profit goes back to the users

Explaining the Credit Union

How a Credit Union works

What we do for you(th)The simple facts

1. A safe place to save your money

2. A place to educate yourself on being “money smart”

3. Somewhere you can borrow extra money if needed

The Bigger picture

1. Your interests as a customer (Member) are looked after

2. Somewhere that is flexible when there is a problem

3. The Credit Unions support your local community

4. A place that is friendly

A big family

Over 170 Million members Worldwide

Over 2.9 Million members in Ireland

The Elephant in the Room

The Elephant in the RoomTurn the Elephant into a Mouse

1. Acknowledge the limitation

2. Sell the positives of the limitation

Get the mouse working for you (Advantages of our Weakness)

1. Helps you to plan your spending and ask the question “Do I really need this”

2. No ATM Cards mean you are less likely to “Spend Spend Spend” and regret it later

3. Most CU’s are open flexible hours (late nights; 6 days; Saturday etc) to accommodate withdrawals

4. We are offering a savings account not a current account

5. Your money is easily accessible when you need it through the Credit Union office

6. We like to deal with our members face to face and give members a One on One attention

Specific BenefitsEach Credit Union is Individual

1. What are the specific or unique benefits for your Credit Union

Sample Advantages

1. WE provide a local, friendly, professional and personal service

2. WE aim to provide value in Savings and Loan products to our local community

3. WE operate as Not for Profit - You own NAAS Credit Union and benefit from the usage of NAAS Credit Union

Great time Now!Credit Unions are by and large strong

People respect Credit Unions

– Banks are in a spin– Negative Press around the Banking practices– Uncertainty of the Economy

Lets put forward the Credit Union message

“Trade sources suggest that students still tend to view banks as ‘the bad guys’.”

Mintel Report; Dec-2008

Analysis of who we are

• From Best Practice Meeting 2009 (Youth Brains Trust meeting – written by smart young people)

A credit union is locally owned Financial Institution, that provides its community with a safe local place to learn about being money smart. The Credit Union has its owners as its customers and aims to generate benefit/return for all members through its activities by being a place customers can save or borrow.

Engagement Strategy• A process for how we engage with the 15 – 24 year old

Market

Channels to Market

Acquisition Retention

Consistent Message

Schools

Internet

In our Office

Education on Finances

Build Awareness

Incentive to join

Product Benefits

One 2 One Service

Credit Union Advantage

Consistent Message

Consistent Message

Channel to Market• Internet - Your website is vital

– People (especially young) use the internet as a source of information

– Have a website but please keep it updated

– Use your current activities to have young people “out-front” on your site

• Online transactions are not vital (yet)

NI ROI

Engagement Strategy• A process for how we engage with the 15 – 24 year old

Market

Channels to Market

Acquisition Retention

Consistent Message

Schools

Internet

In our Office

Education on Finances

Build Awareness

Incentive to join

Product Benefits

One 2 One Service

Credit Union Advantage

Consistent Message

Consistent Message

” ”

Acquisition and Retention

What Banks are doing?– Incentives, account benefits and new communication

channels are not enough to capture the younger audience. Often apathetic, young consumers do not have sufficient knowledge about finance products and services or lack the inclination to learn; financial services providers must therefore take some responsibility in educating younger consumers about finance.

– Engaging the younger consumer and encouraging them to take control of their finances are essential if financial services providers are to sustain market share.

Marketing Finance to Younger ConsumersMintel Special Report, December 2008

We want you to use thisTake this away

Use it in your Credit Union to have a nationally consistent message to Youth

– Generic across all Credit Unions

– Add your own unique brand

You own the message! Buy into it and commit to engagement with youthDownload from cu4youth.ie and spread theword

A Final thought

Even if you are on the right track, you will get run over if you just sit there.

Will Rogers