"73% of Credit Unions Have Died but There’s More Opportunity Than Ever" is a CU Executive Briefing that shares insights about the industry and how leaders can capitalize on the growth opportunity in front of them.

1. 73% of CUs Have Died but There’s
More Opportunity Than Ever

2. Number of Credit Unions (Year End)
1970 2014
6,513
23,687
73% Decline Since Pinnacle in 1970
Source: CUNA Report Year-End 2014

3. Number of Credit Unions (Year End)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
6,5136,7957,0707,3517,6057,8308,089
8,3968,662
9,011
9,436
30% Decline, 2004-2014
Source: CUNA Report Year-End 2014

4. 3.03% Decline Annually
Number of Credit Unions (Year End)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
6,5136,7957,0707,3517,6057,8308,089
8,3968,662
9,011
9,436
Source: CUNA Report Year-End 2014

5. 20%
80%
96% of “deaths” were
actually mergers
Source: ncua.gov, “Truth in Mergers”

6. CU industry isn’t
really dying,
it’s growing:

7. (In Thousands)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
101,460
98,37995,96893,98992,61991,99790,73689,32488,22287,01486,050
17.9% Membership Growth
Source: CUNA Report Year-End 2014

8. And 71.3% Asset Growth
(In Billions)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1,145
1,084
1,043
982
934
903
832
777
732
700
668
Source: CUNA Report Year-End 2014

9. Growth
Opportunity
for Your CU
=CU Industry
Growth

10. How can you capitalize on this
growth opportunity?

11. How have other organizations
achieved massive growth?

12. Median 2-Year Growth Rate
0%
25%
50%
75%
100%
Avg. Company High Growth Firms
Average Company Growth
15x more
100%
6.6%
Source: Hinge Research Institute

13. Median 2-Year Growth Rate
0%
25%
50%
75%
100%
Avg. Company High Growth Company
Average vs. High Growth
6.6%
100%
Source: Hinge Research Institute

14. Median 2-Year Growth Rate
0%
25%
50%
75%
100%
Avg. Company High Growth Company
Growth Difference
15x faster
100%
6.6%
Source: Hinge Research Institute

15. Median Current Profitability
0%
7.5%
15%
22.5%
30%
Avg. Company High Growth Firms
Average Profitability
2x more
27.5%
12.5%
Source: Hinge Research Institute

16. Median Current Profitability
0%
7.5%
15%
22.5%
30%
Avg. Company High Growth Company
27.5%
12.5%
Average vs. High Profitability
Source: Hinge Research Institute

17. Median Current Profitability
0%
7.5%
15%
22.5%
30%
Avg. Company High Growth Company
Profitability Difference
2x more
27.5%
12.5%
Source: Hinge Research Institute

18. What do high-growth
companies know?

19. Need Recognition
Information Search
Evaluate Alternatives
Purchase
They Know the Buying Process

20. Need Recognition
Information Search
Evaluate Alternatives
Purchase
And that customers complete 60% without you
Source: Harvard Business Review, “The End of Solution Sales”

21. 20%
80%
80% of customers
start online
Source: GE Capital, Driving shopper
engagement through digital technology

22. 0%
25%
50%
75%
100%
Average Company High Growth
Online Leads Other Leads
63%
Avg Co.’s Get 12% of Leads from Internet
Source: Hinge Research Institute
12%

23. 0%
25%
50%
75%
100%
Average Company High Growth Company
Online Leads Other Leads
63%
12%
Versus 63% for High Growth Co.’s
Source: Hinge Research Institute

24. 0%
25%
50%
75%
100%
Average Company High Growth Company
Online Leads Other Leads
5x more
63%
12%
High Growth Co.’s Get 5x More
Source: Hinge Research Institute

25. How can you
generate more
leads online?

26. The Simple Answer:

27. The Simple Answer:
Get more web visitors

28. to submit contact info
The Simple Answer:
Get more web visitors

29. A Useful Analogy:

30. Imagine you’re a fisherman

31. This is your prized catch

32. And your (not so) trusty net

33. When they meet…

34. You catch only one fish :(

35. To catch more fish,
what should you
do first?

36. What should you do?
1 Fix your net!

37. Fix your net!1
2 Find more fish!
What should you do?

38. 1 Fix your net!
2 Find more fish!
3 Dance!
What should you do?

39. 1 Fix your net!
2 Find more fish!
3 Dance!
What should you do?

40. 1 Fix your net!
2 Find more fish!
3 Dance!
What should you do?

43. 1 Fix your net!
2 Find more fish!
3
What should you do first?
Dance!

45. 1 Fix your net!
2 Find more fish!
3 Dance!
What should you do first?

46. What does fishing
have to do with
CU growth?

47. VisitorsWebsite

48. Leads Captured

49. CONVERSION RATE
is a measure of
website effectiveness

50. Leads

51. Leads

52. Website
Visitors÷Leads

53. Website
Visitors÷Leads

54. Website
Visitors÷ Conversion
Rate=Leads

55. Website
Visitors÷ Conversion
Rate=Leads
1

56. Website
Visitors÷ Conversion
Rate=Leads
1 100

57. Website
Visitors÷ Conversion
Rate=Leads
1 100 1%

58. How can you
improve conversion?

59. Fix your net!

60. = Online User
Experience
Fix your
net!

61. user experience:
noun
the overall experience of a person
interacting with your brand online
Source: Dictionary

62. =User
Experience
Conversion
Rate

63. How to Improve
User Experience

64. Design &
Development Research
Nurturing
Continuous
Improvement
User
Experience

65. Design &
Development Research
Nurturing
Continuous
Improvement
User
Experience

66. Design &
Development Research
Nurturing
Continuous
Improvement
User
Experience

67. Design &
Development Research
Nurturing
Continuous
Improvement
User
Experience

68. User
Experience
Design &
Development Research
Nurturing
Continuous
Improvement

69. User
Experience
Develop personas!
Who are your members? !
What is important to them?!
Understand Your Members

70. User
Experience
Hook (i.e., Stadium Speech)!
Problem or Need!
Evidence (e.g., market data)!
Solution (Start with Why: What do you believe?)!
Invite to Act!
Education-Based Marketing
Develop personas!
Who are your members? !
What is important to them?!
Understand Your Members

71. User !
Experience
Design &
Development Research
Nurturing
Continuous!
Improvement
Design discovery!
Web and graphic design skills
Design

72. User !
Experience
Design &
Development Research
Nurturing
Continuous!
Improvement
Design discovery!
Web and graphic design skills
Design
Content strategy and development!
Website programming (e.g., HTML, CSS, PHP) !
Content Management System (CMS) (e.g., WordPress)!
Development

73. See what people do on your website!
Conversion rate metrics!
Example: Google Analytics!
Behavioral Research
User !
Experience
!
nt Research
Continuous!
Improvement

74. See what people do on your website!
Conversion rate metrics!
Example: Google Analytics!
Attitudinal Research
Understand why people do what they do!
Learn user’s beliefs!
Example: intercept surveys
Behavioral Research
User !
Experience
!
nt Research
Continuous!
Improvement

75. Re-engage leads and current members!
Customer Relationship Management System (CRM)!
Example: smart email marketing
Customer Relationship Management
User !
perience
Nurturing

76. Re-engage leads and current members!
Customer Relationship Management System (CRM)!
Example: smart email marketing
Retargeting
Re-engage website visitors!
Example: Google Retargeting Ads
Customer Relationship Management
User !
perience
Nurturing

77. User !
Experience
Continuous!
Improvement
Continuous
Improvement
Create a long-term plan to accomplish growth goals!
Release improvements and updates regularly!
Implement new UX initiatives and technologies
Long-Term Plan

78. User !
Experience
Continuous!
Improvement
Create a long-term plan to accomplish growth goals!
Release improvements and updates regularly!
Implement new UX initiatives and technologies
Ongoing Conversion Optimization
Calculate conversion rates!
Continually run experiments to improve conversion!
Example: a/b test
Long-Term Plan
Continuous
Improvement

79. User
Experience
Design &
Development Research
Nurturing
Continuous
Improvement

80. Get Started:
Answer 3 Questions

81. Get Started: Answer 3 Questions
1 What is your website’s Conversion Rate (CR)?

82. Get Started: Answer 3 Questions
1 What is your website’s Conversion Rate (CR)?
2 How will you improve your website’s CR?

83. Get Started: Answer 3 Questions
1 What is your website’s Conversion Rate (CR)?
2 How will you improve your website’s CR?
3 If your CR doubled, what would be the ROI?

84. Get Started: Answer 3 Questions
1 What is your website’s Conversion Rate (CR)?
2 How will you improve your website’s CR?
3 If your CR doubled, what would be the ROI?

85. Worksheet