Whether you like it or not, well-known names draw customers in. Even when consumers aren't happy with megabanks, most of them still keep their money in one of them, Credit Union Insights points out.
According to the Consumer Banking Insights Study conducted by Harris Poll, 66 percent of Americans were angry with large banking institutions. Yet, according to information from the Federal Reserve, as of 2012, 70 percent of all deposits in the U.S. go to these same megabanks.
So why, when consumers aren't pleased with megabank's' actions and policies, are they using them? The answer is name recognition.
The CBI found 73 percent of adults said recognizing a brand name was important to choosing a bank and 81 percent of adults in Generation Y said the same. Megabanks gain the upper hand because of their well-known names.
Boost branding
Credit unions can take note of the name recognition phenomenon and use it to their advantage. Many of the CBI participants (78 percent) stated banking locally was important, so credit unions should work at boosting their name and brand in their regions.
By investing in a larger or new marketing campaign, credit unions can get their name out to more consumers and draw in potential members. Credit unions can use numerous tactics to increase brand recognition, including digital marketing, updating equipment like ATMs and community events.
Consumers want the new and latest technology and to keep up with the trends, credit unions should have a website that's compatible with mobile viewing and is optimized for conversions, Credit Union Insights advised. Many credit unions' mobile websites aren't created to increase conversions, but this is something that can be fixed and lead to new members.
Also, adding new ATM machines with the union's name and logo is a great way to mix technology and branding, according to currency accessories company Cummins Allison.