news.cuna.org/articles/118829-change-the-rate-shopping-paradigm
2020-12-Rate-shopping_118829

Change the rate-shopping paradigm

Explore 5 suggestions for putting proof into your marketing.

December 14, 2020

Consumers rate-shop. That will never change. Whether your rates are middle of the road or the best in town, you need to prove to new and existing members that you are the obvious choice for their next deposit or loan. This is particularly true in our new economy, where decisions are made online long before consumers even talk with a member service rep.

You can’t just post your rate and say it’s great. Proof requires that you justify your value.

But how can you compare if you don’t offer the best rates? Datatrac’s whitepaper Driving Deposit and Loan Growth in a Digital Economy provides an in-depth review with live examples and case studies of how to quantify your competitive advantages. The whitepaper includes five key suggestions for credit unions to consider:

  1. Focus on savings instead of rates. Rates often appear in the largest font in an ad. Rather than focusing on your rate, which is a feature of your product, demonstrate how much you help consumers save over the competition. Savings benefits are more motivating than rates.
  2. Provide competitive comparisons. Without a comparison, members don’t know if they’re getting a good deal or not. Showing rates alone invites members to go elsewhere to compare. Maybe they come back, or maybe they don’t. It’s better to compare rates on your terms and keep the attention on you until the deal is closed.
  3. Use a benchmark. Compare your rates to a benchmark, such as the lender average in your city, rather than a specific competitor. You could also showcase specific product characteristics. Your rates may not be the greatest in every category, but you can almost always find categories where you beat certain benchmarks.
  4. Use multiple forms of proof. Use compelling graphs, data, and testimonials. Include third-party validation, such as awards and certifications. Create a powerful message to support your marketing claims.
  5. Be loud and proud. Successful campaigns proclaim their proofs loudly through many channels. Don’t just put proof in a footnote—make it a bold claim supported by evidence.

Datatrac and CUNA have partnered to show members how much credit unions can help them save. Datatrac’s whitepaper provides five case studies of proof-based campaigns, all resulting in triple-digit returns on investment. Datatrac’s Member Benefit Marketing Toolkit can quantify your proof to help you attract new members and grow your deposit and loan portfolios. The toolkit includes:

  • Software illustrating how much you saved your entire membership last year.
  • Widgets showing how much members will save or earn on their next loan or deposit with you.
  • Walletshare software documenting how much members save by moving more of their business to you.

KEN WANEK is the founder and CEO of Datatrac.