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Social media is a popular way for credit unions to reach members and potential members. It can help build a strong brand and improve member loyalty. While social media may be new to you, it’s an important way for your CU to engage with its members. This strategy benefits your CU if you want to reach new members and maintain a positive reputation. The amount you spend on social media depends on your goals and budget.

The financial brand’s study of 100 prominent credit unions revealed that financial institutions spent approximately $1 billion on marketing on social media in 2014. These budgets include traditional marketing, advertising, and training. But how much do credit unions spend on social media? In 2014, the average credit union spent $3 million on social media. It is a large percentage, but it’s important to remember that this number is still relatively small and should not be mistaken for a definite ROI.

 

Social Media Is the New Market Store

Credit unions adapt to this new environment as the financial services industry grows and changes. While traditional marketing efforts continue to produce results, social media is increasingly playing an essential role in the marketing mix for many credit unions. This trend is fueled by the average American consumer who only visits a physical branch three times a year. In 2014, a credit union’s marketing budget was 14.6% of its total assets.

 

The average amount of money credit unions spend on social media varies, but the total is generally 0.10% of assets. However, adjusting the number to suit your specific situation is important. If your credit union is more significant than $250 million, you can reduce this figure by 0.01%. Similarly, you can reduce the amount by 0.02% if it’s smaller. If you’re a nonprofit, a single SEG, or are a community-focused institution, you might want to increase the amount to account for the additional costs.

How Much Do Credit Unions Spend per Year on Social Media

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Social Media: A Tool to Increase Brand Awareness

While credit unions’ spending on social media is relatively small, it’s still a significant amount of money for any financial institution. A credit union can increase its brand awareness, grow its customer base, and attract new members by spending large amounts of money on advertising and digital marketing. The amount of money it invests in social media marketing is an integral part of its overall marketing strategy. It should be well supported if you want to succeed in your business.

 

While social media can be expensive, it’s still essential to have a strategy for the right approach to reach your target audience. This type of marketing can help your credit union expand its customer base, increase member satisfaction, and build brand awareness. And if you’re doing it right, it’s a wise investment. The best way to maximize the use of social media is to create an online presence that’s unique to your institution.

 

Besides being a great way to connect with your customers, a credit union can also use social media to gain new members. These organizations can share information with their members and create relationships with other organizations. Social media marketing is an important part of building a stronger brand and growing membership. A credit union can create a community that shares the same goals as your customers, and it can easily reach new ones.

 

In a recent Financial Brand study, credit unions spent 0.11% of their assets on marketing in 2018. By contrast, only 7% of their competitors spend this amount on social media. This is because they are competing with a more aggressive competitor. Using social media can capture new members and retain current ones. With more social media, you’ll be able to reach more people and grow your membership.

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