Referral Contests: Can These Generate More Credit Union Members?

By admin | Credit Union

May 26
Credit Union Referrals

There have been several ideas to generate more credit union members. However, one of the most questioned idea and technique is referral contests. But, if you’re ready to take your credit union and the brand you’re standing for, then referral contests are one of the ways to do it. Are you looking into building awareness to your brand as well as increase sales? Maybe you’re looking into growing your e-mail list so that you can nurture and create leads. A referral contest may be the best way to go as you’re going to use the power of social media marketing to effectively grow your credit union and your brand.

Why are referral contests a win-win situation?

There are two reasons why a referral contest can become an advantage to you while also becoming an advantage to your potential consumers. One reason is word-of-mouth marketing. You know Krispy Kreme? If you do, it’s probably because you heard its name somewhere from someone. Before Krispy Kreme started out with advertising, they were solely word-of-mouth and that’s how they received a high number of customers. They expanded their business through something that barely costs anything. Word-of-mouth marketing is cheap, and the best part about it is you already gain people’s trust. You won’t try something new unless it’s from someone you trust, right? This is especially the case when you have personal circles. So, if you successfully get a customer to spread the word on your brand by “tagging” or “mentioning” their friends and family through the use of social media, then you will have passed the hesitation people get with something they aren’t familiar with. What we mean is if it’s being offered by someone familiar, you wouldn’t have to oversell your product as it’s already sold without hesitation. It’ll give you a higher conversion rate too!

The second reason is you will get the people you are targeting. For instance, you run a campaign to grow more credit union members. So, what you did was run a promotion that if they tagged five people that become members, they are eligible for points or something like that. Of course, people love to win stuff, especially something that can benefit them. There are some financial institutions that run contests for iPads, iPhones, or even big screen TVs. And guess what? People always join and share. So, don’t spam their entire contact list; let the people themselves share it. Why? Because these people will know who are in need of your service as well. This will make sure that the people you’re targeting, even if you’re not the one sharing it, will be targeted. According to financial analysts, referral marketing is a killer for competition because the people are doing the work for you. So, the bigger your reach with them, the more people will connect with you. This automatically makes you trustworthy and more influential in the financial institution industry.

How do I run referral contests?

You already know how referral contests can grow your credit union, so how do you run one? Now that you know what magic referral marketing can do for you, it may be time to create a strategy in running a successful referral campaign that will grow not only your brand but also your credit union members. You can try Kick Off Labs, and see if they offer your credit union something of value.

So, you’ve got to source the right referrers. When you’re looking for the perfect referrers, you are actually looking at four places you already have access: your e-mail list, your website visitors, your social followers, as well as your idols in the industry. You may wonder why these four places are the place to look at, but we’ll let you know that you already have access to everything you need. It’s just the part in which you consolidate your thoughts into a successful campaign where things may get a little difficult.

With your e-mail list, you’re going to have to sift through members that always open your e-mails, click through, as well as those who have purchased a product you sent out through your newsletters. These are usually the most motivated people on your list and can give you a head start on working on a referral marketing strategy.

Your website visitors, although they may not be subscribed to your e-mail list, still visit your site regularly. So, don’t forget to reach out to them. Three ways you can reach out to them are by hitting them on the way out. Or, you can also use a widget to capture visitors before they leave the site. However, this has been used for a lot of spam, so maybe this may not be a great idea if it isn’t presented well. You can also discuss it in your blog posts. We’ve mentioned before that in order to increase your credit union’s presence online, you’re going to need SEO and blogging. So, if you haven’t already started a blog, it may be the right time to do it now and, what better way to launch a blog than with a contest, right? Get your readers excited about the prizes that are waiting in store for them. Last but not least, the Hello Bar. If you aren’t familiar with the Hello Bar, just visit their website. This toolbar can be placed on top of your website to help advertise your new contest.

If you don’t think your subscription list or your website visitors are enough to start out with, you can also take note of your social media followers. If you have a profile or page on social media platforms, utilize it and reach out to your followers, and let them know about the newest contest you have. But, you’ll have to do this with a series of posts that are timely posted.

Last but not least, your idols in the industry. You could reach out to those with high influence in your industry. They know how to speak and who to speak to your target audience. If you can get an influencer to even promote your contest, then you will have already widened your reach and grown your brand recognition. You can find these influencers through social media or their websites. Don’t just hit them up with a request, though; build a relationship with them by sharing their content or commenting on blog posts, maybe even tagging them in your relevant posts.

After looking for the ones that will “ignite the fire” to your campaign, you have to decide what you want most from the contest. Do you want more followers? Do you want more subscribers? Or maybe, you want to grow your credit union members? Whatever your reason may be, you need to know what kind of contest that will yield the highest results. So, if you’re looking for more members, you could give a prize to everyone who signs up to your e-mail list and give rewards to referrers. When all is said, you also have to make sure that your referral marketing campaign is easy to join. You can’t have any complicated, go here and go there, then do this and do that sort of thing. It’ll show that this is what they’ll have to go through to even be part of your credit union. So, basically, you have to make the process easy. Plus, make sure that your script doesn’t sound like a spam.

There are a lot more steps in creating a referral marketing campaign or a referral contest. However, you should really focus on these things first. If you have any concerns, don’t hesitate to send us a message or add a comment below. No Joke Marketing Credit Union will surely help you find what you need for your credit union.

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