Member referral campaigns, also sometimes referred to as membership drives, are about as “old hat” as it gets in credit union marketing. For most credit unions, it’s an annual or semi-annual effort that brings great intentions but little in the way of new and innovative thought to the table. Geezeo, is looking to change this with its new CU Tell-a-Friend online member referral engine.
The typical member referral program is management-intensive and not overly member-friendly. Credit unions generally have printed referral cards or forms available in branches. Members must pick them up, fill them out and submit them for the specified referral bonus (usually in the $25 range). A credit union then relies on the referred potential member to actually sign up, then complete data input on the new member into its computer system. There are plenty of pitfalls and black holes in this cumbersome process.
This is where CU Tell-a-Friend comes into play. “We are destroying the box on traditional member referral programs,” says James Robert Lay, president of PTP New Media, which partnered with Geezeo on the CU Tell-a-Friend platform. “Instead of thinking about member referrals as a once-a-year campaign, we want credit unions to view them as part of daily operations.”
Using CU Tell-a-Friend, members can refer people using a series of simple online data submission screens. A growing number of credit unions are now using this member growth tool, including 1st Advantage Federal Credit Union, Keesler Federal Credit Union and Comstar Federal Credit Union.
Jim Craig, vice president of marketing at 1st Advantage Federal Credit Union, says the idea behind the referral engine is to realize an increased volume of new incoming members at a lower overall acquisition cost than traditional methods often involve.
“We also look at how CU Tell-a-Friend compares to traditional referral methods,” added Lay. “Geezeo has found that in referral programs with a small financial incentive (the average is around $25), credit unions can see a 20% leap in referral activity. In addition, they found that by asking for referrals online or through email, referrals increased 12% when compared to traditional methods like statement inserts, newspaper ads and direct mail.”
CU Tell-a-Friend further enhances online sharing capability by providing seamless Facebook and Twitter integration so members can share the good news about credit union membership with their circle of social media friends and family. An experience measurement tool, known as CU Follow-Up, allows for additional growth through member feedback while cross-selling products and services.
Member acquisition and retention are traditional challenges faced by many credit unions. The CU Tell-a-Friend online member referral engine offers an interesting online twist and shot in the arm to this venerable growth platform.