Market Financial Planning to Boomers

CUNA’s E-Scan online portal and newsletter
May 19, 2011 | COMMENTS

Not all credit union members have similar financial needs and goals, notes CUNA’s 2011-2012 Credit Union Environmental Scan (E-Scan) report. Circumstances such as the recession, changes in the American workplace, and technology—along with varied demographic needs—mean one product does not fit all. Credit unions need to tailor marketing plans and strategies to fit various member groups.

One need identified in the E-Scan is the financial security of baby boomers nearing retirement.

Of all age groups, boomers tend to be the most pessimistic about their financial futures, likely due to the fact that they don’t have much time to regain wealth lost in the recession. Three-fourths of boomers don’t think they have sufficient financial resources, and one-third of them believe they never will.

Overall, 97% of boomers are concerned about their long-term financial security. Credit unions should consider these members the most likely age group to use retirement planning services.

Start with a plan

Interestingly, most financial planners don’t have a formal marketing plan, according to a special report in the Financial Planning Association’s Journal of Financial Planning. Financial planners typically rely on client referrals to bring new clients to their practice.

In reality, effective marketing strategies that support business objectives result from using various marketing tactics rather than relying on just one. The marketing of financial planning services, like other business lines, must include an overarching plan that clearly identifies and supports business goals, according to the association.

Typically financial planners are reluctant to devise marketing plans, notes the report. “I call it the ‘expert complex,’” says Stephanie Bogan, president/CEO of Quantuvis Consulting. “There’s a real resistance to marketing for fear of being perceived as a salesperson.”

Financial planners further hesitate because they’re unsure what to include in a marketing plan. In a survey of 400 planners, says Bogan, a consensus of respondents agreed on three marketing approaches that generated business growth, and three approaches that failed.

Top ranking marketing approaches included referral requests, “working with centers of influence for referrals,” and distribution of e-newsletters. Less popular marketing methods included TV and radio ads, podcasts, and online videos.

Client appreciation events yielded many new leads, according to the association, as 32% of all planners had held such promotional events. Among those who developed more than 20 prospects, 42% had conducted client appreciation events.

Grasp the opportunity to reach out to financially insecure boomers with a concrete plan to grow their finances, provide reassurance, and retain membership, advises the report.

“If you believe you’re doing the right thing for the client, don’t sit there worried about how you’ll be perceived,” says Bogan. “You should be shouting that from the rooftops. Be a champion.”

For credit unions, member retention is vital, and fulfilling boomer members’ retirement planning needs can help achieve this goal.