Mining the Acres of Diamonds in Your Credit Union Membership

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I heard the old Acres of Diamonds “many times told over the years. My favorite version of Earl Nightingale, the pioneer of the radio of the late great and motivational speaker is told. The story goes like this, a farmer of South Africa heard diamonds in different parts of the country, so he sold his land and spent the rest of his life in vain search for the elusive fortune in diamonds. Meanwhile, the ranch, or closes in this case, the farmer sold the land in search of fame and fortune proved to be a the diamond mines of the country’s most fertile. The farmer went home to find his fortune without realizing that if he spent time and energy on his own land, he would ha diamonds.

A recent issue of American Banker an article that tells a similar story. Although the article reviewed the banks, we could have described the credit cooperatives. It seems a study by Greenwich Associates found that include cold calls to 20% of the time bankers, but only 9% of their new business. In contrast, they spent 42% of their time on referrals, which resulted in 21% of new business. These survey results underscore what I’m sure you know what is “exploration” of its own membership base is more successful than the outgoing marketing “cold calls” type bin. Of course we must do a certain coldness Sourcing our efforts to complete reference, but the results tell us that the majority of our time on the mining of our own “Acres of Diamonds” should be spent.

I recently spoke at a conference of fund companies and related some of my personal experiences with the concept. A former stockbroker, I worked on the concept of cross-selling within the brokerage firm and the financial institution to embrace her. The end result was the financial institution has received nearly 20% of its revenue from non-deposit investment program and the average customer who has a checking account and base, a customer uses to invest an average of nine products to the financial institution products compared to 3.73 for customer service Non-investment. A basic checking account, like the main current account client that had direct deposit and wrote more than 10 checks per month set.

Space allows me not to be used to draw in order to achieve these impressive results on all strategies. The financial institution has committed a turnover culture throughout the company and also the determination that the investment sales were an important product within the product range. Similarly, the firm are required to cross-sell products, financial institution, the reference staff made efforts to complement. It was a program of performance pay for tellers and new accounts staff and it was returning an incentive for financial advisor current accounts, home equity loans, etc. The end result is a penetration rate of impressive clients, 11.7% for the investment program and contribute to the stressed financial institution about 17% of sales of non-registration.

What does this mean for us? At the risk of “into Athens,” he tells us, that members who are entering the investment program of credit unions “sticky” members. Use the body more. They will also generate more revenue costs will remain are the body, through its propensity to cash more products from a member who has not been established use in stock investing service. This “financial investment” also tend to bring money to new bail fund. In that time pushed the margins, the investment program of the loan, a contribution income tax be approved if they are generally in the range of products is integrated credit unions and supported by a program of cross-selling.

The timing could not be better for credit unions their cross-selling and investment systems to verify referral program. History shows that successful integration leads to higher revenue producing investment programs in the financial institution market. I look forward to working with you to develop a mine plan your own “Acres of Diamonds” that we work together to increase the penetration success of your investment program to finance. History can repeat itself if we work together towards the common goal, the best service for our members.

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