Now is the time of year that member givebacks, dividends, and rebates are all the rage.
As a result, some credit unions are giving back millions of dollars to their members.
While this may sound wonderful, is it truly an investment that is beneficial? Is it possible that offering up a short-term benefit at the expense of long-term membership growth, value, and service experience isn’t worth it after all?
The short answer: Unless your credit union has maximized its value and experience for members, this giveback is nothing more than a misguided attempt to buy loyalty.
Here’s what you should ask before considering a member giveback:
Short-term financial benefits like givebacks will not make an impact over the long-term.
When you don’t provide a giveback, it will have a negative result as you have conditioned your members to expect it.
Decisions are rarely about money alone, and the decision to become a member at your credit union is no different.
What are you doing to create an emotional connection with your credit union? What are you doing to add value to the member experience in meaningful ways?
By investing in the future of your credit union, you are investing in your members.
And because your members are part-owners, what is good for the credit union is always good for them.