When You Need Them:

Core Strategies to Accelerate Your Share Deposits...

When you need to increase deposits it makes sense to have a core marketing strategy ready. The following is a proactive plan credit unions are using to increase their market share.

Strategy 1: Competitive Rates Review – You need to know where you stand before you take any action. Regularly comparing your rates with your competitors is essential. The reality is that in today's economy members are less loyal and look at savings and investment products as a commodity. Higher rates and convenience win their money.

The most successful and proven strategy is to beat your competitors’ rates or offer rates significantly higher. However, if the best rates are not possible, consider the best rate you can offer, plus include a fixed cash bonus or gift certificate. Another option is to offer money-related premium merchandise, such as collectible coins or currency. The value of the incentive obviously depends on how you crunch your profitability number, but research shows that the higher the perceived value of the incentive, the better the response.

Strategy 2: Spread Positioning – Determining the spread between share accounts, such as money market and certificate accounts, depends on your pricing strategy – and your pricing strategy depends on what your competition is offering, and what your members want and expect.

The spread may not matter as much if most of your members prefer liquidity and convenience to a higher rate. However, if you choose a narrow spread, members will be forced to choose between liquidity and the higher rate. On the other hand, if the spread is too wide, members will most likely choose the higher rate account. IAnd if the spread doesn’t matter, you still need to competitively price your accounts. A popular spread is .50% APY.

Strategy 3: Super Tier Rates – Many credit unions have a tiered money market account with the rate based on the account balance, as well as tiered certificate rates based on the deposit term. Traditional pricing strategies include rates that may change monthly, or rates that are raised or lowered at any time based on the marketplace. Other credit unions have jumbo account tiers that pay higher dividends for larger deposit amounts,

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