How to Amplify Your Credit Union’s Word-of-Mouth Marketing Strategy
Word-of-mouth marketing is a powerful strategy for credit unions to increase their membership. According to a report by Nielson, 92% of consumers trust recommendations from people they know. Meanwhile, less than half of consumers trust online ads.
Word-of-mouth marketing does not simply happen with luck. To increase referrals, credit unions can turn their members into advocates by providing life-changing products and services, unmatched digital and in-person experiences, and interactive solutions that are shared seamlessly with family and friends.
Let’s explore why word-of-mouth marketing should be a top priority for credit unions and how Paperwork naturally creates a shareable experience for members.
Why Credit Unions Need a Great Referral Marketing Strategy
When choosing a financial institution, consumers look for trust and credibility, and word-of-mouth referrals are a source people tend to trust more than other marketing strategies. This can be explained by “social proof,” the idea that when people are unsure of what to do, they take cues from those around them.
For example, when someone is looking for a bank, they’ll likely ask friends and family if they like where they bank. If one institution gets rave reviews, it’s extremely probable they’ll go with that institution over one people feel apathetic about. And according to the research, there’s a good chance they’ll choose the institution with a personal recommendation over the one they see in online ads.
The key to turning apathetic reviews into rave reviews is an emotional connection. Research from Invesp states that companies that inspire emotion receive 3x more word-of-mouth marketing than companies that don’t. Fortunately for credit unions, finances are extremely linked to emotion, and helping a member out of a difficult financial situation is sure to inspire positive emotion.
To find out how financial wellness increases members’ emotional connection and engagement, visit this page. Here’s how Paperwork helps credit unions improve a member’s financial wellness and seamlessly brings in referrals.
The Power of Paperwork with Word-of-Mouth Marketing
Forbes calls successful word-of-mouth marketing credible, social, repeatable, measurable, and respectful. Paperwork does just that by guiding members through every aspect of their financial health and giving them personalized action-steps to improve. Paperwork provides a measurable snapshot of their progress and what areas might still need attention.
By helping members on the path to financial health, Paperwork forms an emotional connection with them through a personalized yet automated process that takes their unique circumstances into consideration. And because Paperwork is white labeled, all of the member’s positive emotion is associated with their credit union.
To learn more about why credit union members appreciate digital tools, click here.
In addition, Paperwork creates a viral network factor by prompting members to add emergency contacts. This feature encourages members to invite their friends and family to join the app as trusted contacts of the member who can help in case of emergency – in turn helping the credit union generate awareness among friends and family of their members.
For more information about how Paperwork can turn your credit union’s members into advocates, schedule a demo today.