Debate centers on MySpace use by companies

MADISON, Wis. (6/20/07)--As the number of credit unions using MySpace to reach younger members rises, so do the number of questions surrounding its effectiveness--not to mention the reputation MySpace often receives for inappropriate content or misuse.

Becky Langlois, marketing and community relations manager at Motor City Community CU (MCCCU) in Windsor, Ontario, said concerns about MySpace and the bad press it often receives were "definitely" a factor before the credit union decided to launch its profile last summer.

However, Langlois pointed out that like anything on the Internet, there's always potential for problems. She noted that MySpace is selective in terms of what users can post on their profiles, giving it more credibility for those who choose to sign up.

So far, MCCCU hasn't received any negative feedback for using MySpace.

Amanda Brown, marketing coordinator for Fox Communities CU, based in Appleton, Wis., said some of her fellow staffers were skeptical of using the social networking site to promote the credit union.

Like Langlois, Brown pointed that while the credit union staff can't control the information on other users' profiles, they can control what goes onto theirs.

And, keeping in line with the "people helping people" motto of credit union mottos, "We have members from all different walks of life," Brown said.

Aside from content, there's the question of how effective social networking sites are in marketing to youth. Credit unions can certainly define success in the number of profile views or friend requests they've received. But how many of their members actually joined because of MySpace?

"It's hard to measure," Langlois said.

MCCCU doesn't use its profile as a "heavy product sell," but instead tries to build relationships with its younger members, providing information about items such as mortgage rates for potential homeowners, and how credit unions are different than banks.

Josh Jones, manager of adult programs at the Credit Union National Association (CUNA), noted that credit unions should post items such as the credit union's history, or emphasize how they can help members.

He suggested that credit unions seeking to target younger members allow young adults to create the MySpace profiles on behalf of the credit union, ensuring that the content would fit younger demographics.

Jones also advised credit unions to be honest when creating profiles, getting the message across that credit unions are there to help their members, instead of to sell products.

While using MySpace to get the word out about credit unions is often targeted toward Generation Y, some credit unions report a mix of "friends."

Andrea Holloway, who works in marketing at Wheatland FCU in Lancaster, Pa., said the credit union originally created the page to target the younger generation, but found that people of all ages have visited the site. "It's worked perfectly for us," she said.

Holloway got the idea to create a profile while attending a recent CUNA business and marketing conference in Las Vegas, where she learned about podcasting and using MySpace to tap into the younger generation.

Wheatland will continue to monitor its profile and add updates. The credit union's web page currently has a direct link to the MySpace profile for added traffic, and banner ads on the MySpace profile link back to the credit union. Pictures of the credit union, its branches, and local events that it sponsors also are posted on the profile.

With MySpace still new as a marketing tool to most credit unions, it's hard to predict exactly how social networking will affect Generation Y and beyond.

"The market will dictate," Jones said. "Some (credit unions) will have success, some won't."

Resource Links

Wheatland FCU MySpace Page

Fox Communities CU MySpace Page

Motor City Community CU MySpace Page