5 Graphs That Show Credit Union Marketing Trends

Marketing budgets took a hit during the Great Recession. Now, credit unions are concentrating on getting more bang for their marketing bucks.
Janet Lee

Callahan & Associates conducted the 2013 Marketing Budget Survey to help credit unions determine where the industry is spending its marketing dollars. The survey identifies trends and provides data that is not readily apparent on the 5300 call report.

Total Marketing Expenses
For all U.S. credit unions | Data as of December 31, 2012
Callahan & Associates | www.creditunions.com

Source: Credit Union Marketing Budget Survey

Promotional Expenses
For all U.S. credit unions | Data as of December 31, 2012
Callahan & Associates | www.creditunions.com

Source: Credit Union Marketing Budget Survey

According to the 2013 Credit Union Marketing Budget Survey by Callahan & Associates, credit unions allocate their marketing budgets primarily to promotional, advertising, and educational costs. Promotional expenses account for 62.2% of total marketing expenses; community events (30.3%) and sponsorships (21.5%) are the two largest categories of promotional expenses.

Total Marketing Expenses Plus Year-Over-Year Growth
For all U.S. credit unions | Data as of March 31
Callahan & Associates | www.creditunions.com

gow-july-21

Source: Callahan & Associates Peer-to-Peer Analytics
Callahan & Associates 2014 Directory

Credit unions have gradually increased their total marketing spend throughout the past five years; however, credit unions’ efforts to manage expenses has caused a decrease in the rate of growth. This trend is in line with the trends found in the retail banking industry. According to the 2014 State of Marketing in Retail Banking Survey conducted by The Financial Brand, marketing budget is increasing but not as much as they did in 2013.

Marketing Expense Per Net New Member
For all U.S. credit unions | Data as of March 31
Callahan & Associates | www.creditunions.com

Source: Callahan & Associates Peer-to-Peer Analytics
Callahan & Associates 2014 Directory

The marketing expenses per net new member ratio shows how many members the inudstry acquired per $1 of marketing invested and is one way to gauge marketing success. The $324 recorded as of March 2014 is the lowest since 1Q 2010.

Marketing Expense Growth Vs. Total Operating Expense Growth
For all U.S. credit unions | Data as of March 31
Callahan & Associates | www.creditunions.com

Source: Callahan & Associates Peer-to-Peer Analytics
Callahan & Associates 2014 Directory

Marketing expenses took a harder hit than total operating expenses during the Great Recession but have increased at a faster rate since 2011, signaling a renewed confidence in the economy and within the industry. The annual growth for marketing and operating expenses converged at 3.7% in March 2014.

July 21, 2014

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