Successful Growth Strategies

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Successful Growth Strategies

• Americas Credit Union Conference Expo
• July 1, 2008

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Growth Challenges

• Membership Growth
• Asset Growth
• Relationship Growth

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Credit Union Annual Member Growth Rate
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Credit Union Annual Assets Growth Rate
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Growth Challenges

• Differentiation
• Competition
• Affinity
• Sponsor Support
• P/R Deduction
• Regulation

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CU Advantages

• No Tax
• No Dividends
• No Wall Street
• Trust
• Philosophy

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Successful Growth Strategies

• Why Grow?
• Negative Aspects?
• Should Growth Be a Goal?
• Short term thinking
• Contra productive techniques

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Successful Growth Strategies

• Growth is an inappropriate objective. Do the
  right thing and growth will happen as it should.
  By the way, so is no growth.
• Dr. Deming
• Dartmouth

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What are the Right Things?

• Member
• Price
• Service Quality
• Convenience
• Features
• Ease of Use

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Long-term Growth Strategy

• Focus
• Align
• Avoid Fads
• Differentiate

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Successful Growth Strategies
Product
Existing
New
B
A
Existing
Markets
New
C
D
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Growth Myths

• Low Capital/ROA
• FOM Expansion
• Member Growth
• Marketing

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Growth Issues
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Growth Myths Capital/ROA
Source Callahan Peer-to-Peer 2007
Average for each group (100 Largest CUs)
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Growth Myths Capital/ROA
Source Callahan Peer-to-Peer 2007
Average of hand selected from 100 Largest CUs
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Growth Myths

• FOM Expansion
• Affinity
• Penetration
• Needs
• Infrastructure

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Growth Myths

• Membership Growth
• New vs. Total
• Marketing
• Packaging vs. Content
• Timing

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Successful Growth Strategies

• Differentiate
• Unique Products
• Target Market
• Sequence
• Integrate
• Penetration
• Retention
• Expense Control

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Top 10 Return to Member CUs
Source Callahan Peer-to-Peer 2007
Average for each group (100 Largest CUs)
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• QuestionsorComments?

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