Spending more time and resources cultivating your most enthusiastic members may also mean spending less on your least active ones. “We have a lot of empty memberships,” says consultant Dave Dawson. “We estimate that as many as one in three members are costing their credit unions money.” Benign neglect is one thing; showing poor performers the door is another. Should your credit union shed its least profitable, least active members? Some say yes. Coe estimates that CoastHills has reduced its membership by about five percent over the past year through deliberate de-marketing efforts. De-marketed members shared a few characteristics:
- Low activity, low balances, low profit. These members hadn’t done a transaction in more than 60 days.
- Low responsivity. When CoastHills mailed 4,100 postcards encouraging members to take action, zero responses came in.