Chase MartinMadeline Russell

Richard LindsayThomas Brumpton

Table of Contents

Executive Summary.......................................................................................................................3Project Overview.....................................................................................................................................3Research and Analysis............................................................................................................................3Recommendations....................................................................................................................................3

Company Description....................................................................................................................4ICCU Company History / Background.................................................................................................4ICCU Mission...........................................................................................................................................4ICCU Services..........................................................................................................................................4

Research and Analysis...................................................................................................................5Industry Analysis.....................................................................................................................................5SWOT Analysis........................................................................................................................................5Competitors Analysis..............................................................................................................................6

Recommendations..........................................................................................................................8Recommendation One: Increasing Digital Interaction........................................................................8Recommendation Two: High School Competitions..............................................................................9Recommendation Three: “The Road Starts Here”............................................................................10Recommendation Four: Snapchat Campaign.....................................................................................11

Conclusion....................................................................................................................................12

Appendix.......................................................................................................................................13

Executive Summary

Project OverviewIdaho Central Credit Union has given the Idaho State University Service Marketing class the job

of developing a market plan that focuses on their New Generation accounts that serves the 16-

25-year-old age range. The customer driven service marketing strategies are outlined as:

What are the best digital tactics to market to younger groups, like millennials. What are

their expectations? What are the best methods? What doesn’t work? What will be the

next big thing?

Member retention. We know it is less expensive to retail members than to obtain new

ones. What insights and recommendation would they have for marketing to existing

members with the goal of retention?

Social media. Develop a social media campaign that focuses on retention and/or

acquisition.

Research and AnalysisThe research that was completed for ICCU consisted of an industry analysis, SWOT analysis and

competitor analysis. Our methodology for collecting data was online resources, industry reports,

online Qualtrics survey and a focus group that consisted of 16-25 year olds.

RecommendationsFor ICCU we put together a list of four recommendations that we believe fits the scope of work. They consist of:

Increased digital interaction High School competitions “The Road Starts Here” savings account Snapchat campaign

Company Description

ICCU Company History / BackgroundIdaho Central Credit Union (ICCU) was founded as a state chartered credit union in June of 1940

in Boise, ID. During this time, officers of a credit union could not use the credit union they were

employed by for their financial needs. ICCU’s membership consisted solely of officers from

other credit unions. By the end of 1941, ICCU had only 22 members and $298.93 in assets. In

1997, ICCU achieved $100 million in assets and continued to expand. In 2006, ICCU reached

$500 million in assets, and by 2015, $2 billion in assets. Eventually, ICCU relocated its

headquarters to Chubbuck, Idaho, and currently operated 29 full-service locations throughout the

state of Idaho.

ICCU Mission“Helping members achieve financial success” is the mission statement of ICCU. The company

has grown exponentially with over 200,000 members and over $2 billion in assets. Its current

membership consists of employees, students, retirees, and family members in most of Idaho’s

counties. There are currently 26 branches throughout the state, and three more are scheduled to

open within the next two years; in Pocatello, Post Falls and another in Caldwell.

ICCU Services Adaptable checking accounts Adaptable savings accounts Student accounts

o New Generation savings and checking accounts Kids accounts

o Share Bear savingso Central Explorer account

Investments and Planningo Certificate of depositso IRA and Retirement

Visa Credit Cards

Research and Analysis

Industry Analysis

Idaho Central Credit Union (ICCU) currently covers seven counties within Idaho, with 29

physical locations. On average, 29.07% of the population1 in these counties are in the 10 – 29

age group. The New Generation Account that ICCU offers to millennials (ages 16 – 24) has a

multitude of potential within these counties. However, when this age group were asked why they

1 www.bls.gov

didn’t use a credit union instead of a bank it was a clear that it was because they didn’t know

much about them2.

Due to the uneducated consumer, there is one thing clear, no one is going to fully “solve” this

millennial problem. Yet, there are some tactics worth considering. Firstly, technology is fun, but

it is not enough to influence consumers. Even though millennials are considered the “mobile

generation” it is not all that defines them. Second, social media is crucial to retention and

engagement, it is not something that can be done half-assed. Finally, education of what a credit

union is, is important in recruiting millennials. While financially, targeting the millennial

generation may not be the most profitable, investing in this age group will help develop the ideal

consumer and maximize the potential lifetime value of this member.

SWOT Analysis3

There are many strengths that ICCU has developed. The most important is the brand recognition

within Idaho, Idahoans associate ICCU with the green color and their multitude of services. They

have also been named best place to work in Idaho since 2013. In addition to their accolades, they

are also highly involved in community events and can be spotted during sporting and scholastic

events. However, even with all their positive assets, ICCU still has room for improvement. The

most notable is the education of the public as to what a credit union is. They are also a

community credit union that is limited to Idaho, this can be viewed as undesirable to many who

may not want to stay in the area.

Besides the internal analysis of ICCU, there are many external opportunities and threats that

need to be explored. For example, some opportunities include: growth in rural populations, high

school sporting events and targeting parents for the New Generation Account in addition to the

millennials. Threats to ICCU include: national banks, national credit unions and community

banks and will be discussed more in the competitor’s analysis.

2 Conducted by Google Consumer Surveys, Dec. 30, 2014 – Jan. 9, 2015, based on 453 online responses 3 See page 14

Competitors Analysis

For the competition analysis, an online survey was conducted. The question of what institute

comes to mind when asked about credit unions was asked. The word cloud to the right shows the

results of the survey. Words appear in the cloud with the size of the word relative to the number

of times it was mentioned in our responses. As is clear, the credit union that first comes to mind

was ICCU. Westmark Credit Union and ISU Credit Union closely follow. Due to the results of

the survey, we based our competitor’s analysis on the following credit unions and banks which is

found in table one:

Credit Unions Banks

Westmark Credit Union Citizens Community Bank

ISU Credit Union Key Bank

Pioneer Federal Credit Union US Bank

Mountain America Credit Union Wells Fargo Bank

East Idaho Credit Union Ireland Bank

CapEd Credit Union DL Evans Bank

Table One: Competitor List

In table two, ICCU currently has the most locations of all its competitors within Idaho. Each

credit union has their respective youth account with the majority of them starting at a young age.

Table Two: Credit Union Competitors

Table three documents the social media platform that is currently being utilized by competitors.

As shown, ICCU has the largest footprint in social media, being closely followed by Mountain

America Credit Union.

Table Three: Competitors and their social media

Credit Union

Competitors

Number of

Locations

Number of

Members Youth Accounts Age

Westmark CU 13 50,000 Eagle Checking Account 16

ISU CU 6 21,000 Junior Debit Account 13-17

Pioneer Federal CU 14 36,000 Super Star Savings Account under 13

Mountain America CU 16 (in Idaho) 600,000* Mountain Climber under 27

East Idaho CU 9 36,000 Teen Account 13 - 18

CapEd CU 9 65,000 Unknown -----

ICCU 29 200,000 New Generations Account 16-25* Total membership throughout all locations

Recommendations

Recommendation One: Increasing Digital Interaction

1) Have an easier/intuitive online banking

a) 68 percent of credit union members use online banking either through a desktop or

tablet.4

2) USAA has the highest NPS (Net Promoter Score) in the banking industry and has an online

only presence.

a) USAA’s digital interface is easy to navigate, easy to view, and is highly functional.

b) USAA’s digital interface as well as customer service is what attributes to their high

NPS.5

3) Create greater awareness of ATMs that are surcharge free by providing a locator on their

mobile app.

a) Banks outperform Credit Unions at being easy and convenient, therefore, investing in a

more intuitive and easy digital interface can reduce the gap between ICCU and banks.

i) An area where banks seem to outperform credit unions is in being easy and convenient.

Reliable, user- friendly, and enhanced online systems are something most nationwide

banks have invested heavily in, and their customers comment about these systems

often when asked the primary reason for their “likelihood to recommend” rating.

Also, with the nationwide footprint of locations and ATMs that nationwide banks

possess, they clearly have an advantage there as well. In fact, “easy and convenient”

is one of the most commonly discussed themes among Promoter and Passive banking

customers.

4) Increase national partnership with surcharge free ATM in order to avoid the perception that

ICCU is limited to Idaho when accessing customer’s moneys.

a) These interactions are more likely to cause disappointment for a consumer when

conducted digitally, so investing in ease of use and simplification of these types of

interactions could generate improvement in loyalty. Inversely, taking the steps needed to

make sure interactions via digital channels surpass expectations of consumers can lead to

4 Wallace, Sarah. “CREDIT UNION CONSUMER SURVEY REPORT 2016.” Timetrade.com, TimeTrade Systems, Inc., 20165 Bloedorn, Michelle et al. “Next Generation Needs: Examining Credit Union Loyalty among Young Adults.” Filene, vol. 299, June 2013.

positive word of mouth. Investing to ensure that the digitized front-end and associated

customer journeys follow best practices will not only improve loyalty and advocacy, but

can reduce overall costs by 15%, according to research conducted by Strategy. (Bain

20146

b) With the transition of mobile banking, ICCU can become an innovator in the credit union

business by creating digital interaction between ATMs and mobile devices.

i) Like Apple Pay and Samsung Pay, ICCU can create ATM’s that do not require

members to use their card to withdraw cash, rather their mobile device interacts with

the ATM to verify identity.

ii) This makes for a more easy, convenient, and fast way to access members cash.

Recommendation Two: High School Competitions

A great way to market to the younger age bracket would be to set a competition between high

schools in which they can win new sports equipment for athletics sponsored by ICCU.

1. ICCU would provide prizes for the winning school

2. The winning school could receive either new Training equipment such as target nets, tackle

bags. Or perhaps new field equipment such as goal posts. ICCU could use their established

relationship with Nike to give players of the athletics departments a pair of Nikes.

a) This would establish a relationship with the younger demographic meaning ICCU may

well become a top of mind brand when they consider opening an account or getting a

loan.

b) Giving students Nikes may be the most effective as it likely to establish a more personal

relationship which could be beneficial to gaining long term customers.

3. There are several methods that could be used to form the basis of a competition:

a) Traditional Fund raisers in the form of sales or fun runs for charitable causes.

b) Social Media could be used having likes/follows/shares as criteria for winning

i) Participation in various scavenger hunt activities from our previous recommendation.

6 Bain & Company. Customer Loyalty in Retail Banking: Global Edition 2014. 2014

4. The competition could be held as a single straight with the one school winning or a knockout

bracket style competition which may well drive more interest especially when pitting rival

schools against one another.

a) However, using a knock out style competition may shift focus from ICCU to the

competition itself, which may or may not be considered a negative factor.

5. The schools could be split into categories if necessary as otherwise some schools may feel

significantly disadvantaged. As the competition, would likely favour larger schools over

smaller ones.

a) ICCU could use the current high school size categorisation (5A,4A, 3A etc.), a drawback

of which may be how budget intensive this method could be.

6. The competition would also tie in very well with our scavenger hunt for social media

recommendation, allowing a much larger pool of followers to be reached organically due to

the increased number of followers due to the nature in which the competition is conducted.

7. This, in turn would then provide a much larger platform for the “The Road Starts Here” plan,

mentioned in recommendation three, which can be advertised to the new followers generated

through the competitions (both parents and students), along with any other social media

advertising that ICCU will pursue.

Recommendation Three: “The Road Starts Here”

“Road Starts Here” promotion is envisioned to obtain new generation members by offering

parents savings accounts, which are specifically set aside for their child’s first vehicle purchases.

To add, the “Road Starts Here” promotion will offer these members special auto loan financing

when the young adult turns 16, and is ready to finance their first vehicle through ICCU.

We recommend that “The Road Starts Here” savings account is promoted on ICCU’s website

under the “Personal” tab, and would fit nicely in the “Student” and “Kids” subcategories; much

like the Share Bear and New Generation accounts.

Target Market: Idaho Residents

Current ICCU members, with children

Non-members, with children

Promotional Details:

Parents can open “The Road Starts Here” account with a $25 deposit, which ICCU will

match.

Parents, relatives and friends are then encouraged to deposit $25, monthly or $300,

annually into “The Road Starts Here” account.

Once the young adult turns 16, “The Road Starts here” account balance will be

transferred to an ICCU checking/savings account for the individual, which will be used as

a down payment when finance their first vehicle.

Benefits:

No minimum balance or monthly fees

Free online banking

Online E-statements

Free automatic parent transfers

Free auto loan consultation (earn a lower APR if completed before vehicle purchase)

Members can set up direct deposits to Checking/Savings account and earn a lower APR.

Retention:

To retain the new members, we recommend the following marketing schedule to promote other

ICCU services, shown in table four.

Table Four: Marketing schedule

Year 1 – 2 Year 2 – 3 Year 3 – 5

Student Loans Student Loans Refinance Auto Loan

ICCU Credit Cards Personal Loans ICCU Mortgages

Youth CD’s IRA and Retirement

Recommendation Four: Snapchat Campaign

As of September 2016, there are 150 million people that use Snapchat on a daily basis7. Even as

it passes Twitter in daily usage there is still untapped potential in marketing strategies. ICCU can

tap into this by using Snapchat in an innovative way. Our Snapchat campaign for ICCU will

allow to connect with consumers in a playful and creative way. Currently, Snapchat charges $5

per 20,000 square feet for their geofilters. So to put it into perspective, the entire square footage

of the three Idaho State University campus’ within the state of Idaho is 4,000,000 square feet, to

add a geofilter to all campuses would be approximately $1,000.

1. SnapHunt

a. Follow ICCU on Snapchat

b. Use clues to find one of their I – C – C – U letters around town with prizes at each

location

c. Take picture with letter filter and share on Facebook or Twitter using the hashtag

#Findthegreen

d. Be entered to win grand prize of MacBook Air or similar prize

ConclusionGiven the task of providing ICCU with a plan on attracting and retaining new millennial

members, the ISU marketing team recommends four plans in order to achieve this goal. The first

goal is to increase digital interaction and convenience for members. With the highest NPS score

in the banking industry, USAA is a great model for ICCU to use to improve their digital

interface. The second recommendation is for ICCU to create a high school competition in order

to raise awareness from high school students about ICCU. These competitions would establish a

relationship with this demographic and establishes ICCU as a financial institution for younger

generations to start banking with. The third recommendation is the “road starts here” reward

program. This program will target parents of students who are approaching the age of driving

and creates an incentive for parents to plan for this milestone with ICCU. Lastly, the Snapchat

campaign is geared at creating awareness for ICCU’s social media platforms. This campaign will

7

include rewards for followers of ICCU in hopes of creating word-of-mouth to increase the

following of millennials.

Appendix

Well establishedConsistant servicescapeBest place to work in IdahoHigh involvement in community activitiesStrong social media campaignAppealing to younger generationYoung adult account programsName and brand recognition (in Idaho)

Strengths

Public awareness of what a credit union isCredit Union that is limited to IdahoStruggle with marketing to high school ageLower new generation account holdersName and brand recognition (outside Idaho)WEAKNESSES

Lower interest rates Growth in rural population High School sports events Target parents instead of studentsOPPORTUNITIES

National banks National Credit Unions Community banks

THREATS