SEG Development

Mark Arnold
January 14, 2005

Every credit union wants to grow its membership base and one way credit unions are seeking that growth is through select employee groups (SEGs). However, for credit unions to successfully grow their SEG member base, they must develop their SEGs. In other words, the business model is not just SEG acquisition, but SEG development. Once you have an SEG, what do you do to with it?

Colleen Cormier, author of In the Door and Back for More, notes “so many credit unions recruit new sponsor groups with the mindset that member acquisition will happen naturally, but it doesn’t. Just like any other growth initiative, SEG development requires time, effort and constant relationship building.”

Credit unions must look at several strategic issues as they plan to develop SEGs. These issues include how the business development department is organized, what type of SEG relationships are they going to pursue, what items will they require in an SEG agreement and how will SEG development fit into their overall field of membership if they are a community-based credit union.

The correct staff is critical when developing SEGs. Business development employees must possess certain sales traits, have incentives as part of their pay structure and have specific goals for penetrating existing SEGs. Branch managers may also need to be included in developing SEGs.

Credit unions can use several tactics for reaching SEGs, including treating key people within the SEG differently, holding an ambassador contest, making special offers exclusively for SEG employees and partnering with SEGs. Marketing tactics credit unions can employ include new hire orientations, on-site visits, payroll stuffers, and e-mail campaigns.

This executive summary is taken from Mark Arnold’s December 2004 white paper entitled “SEG Development.” Read the entire paper at http://www.cunamarketingcouncil.org/research.html.