Jill Jarman Nowacki, 30 Under 30 member, Credit Union House
Among credit union marketers there is a hotly debated topic: the seemingly benign national brand campaign. It seems most CU marketers believe one of two things, and they believe it strongly. Either they have been inspired by the tremendous success of the Got Milk? campaign and would like to see credit unions develop something similar, or they’ve worked so hard to market their credit unions, build unique brands, and differentiate from the other credit unions in their marketplace that they want to avoid at all costs sharing marketing with the competition.
After a number of years of weighing the values of both—and a couple years removed from a position where I was closer to the marketing side of credit unions—I have realized I sit in a third camp. I do believe credit unions would benefit from a coordinated message, but not in the form of a paid advertising campaign. Credit unions should collaborate by creating a brand (not a logo) built upon the credit union philosophy of people helping people, then begin living that brand in all their service to members.
I am proud to say I am not alone in this way of thinking. In fact, I like to quote my more articulate friend the CU Communicator in saying that “Collective philanthropy and community building will get the credit union movement a lot more mileage than a national ad campaign.”
Credit unions committed to this philosophy show a level of member service that goes far beyond knowing a member’s name and treating them like more than a number. After all, most of us have encountered community banks with a level of that kind of service indistinguishable from (or better than) the local credit union. This commitment to serving members I reference is the one that goes beyond just knowing who your customer is to knowing how to create something that will enhance the member’s whole life; that will strengthen the place where the member lives; that will help members feel good about their financial institution in a way that goes beyond their personal experience.
A Cone Corporate Citizenship study released after the Enron scandal upholds this way of thinking, finding that 79% of customers are more likely to buy a product or service knowing that the business supports a cause the consumer believes in. Credit unions are well-positioned to identify and support causes that matter to their members, simultaneously improving communities, increasing product penetration, and providing members with better financial services.
In times like these, where we watch other financial institutions fail consumers, credit unions—however different their names, marketing slogans, or corporate colors—can thrive by sticking together on their most basic reason for being. Through their actions, credit unions can create a way of thinking among consumers that immediately identifies credit unions as community builders.
I believe that collaboration toward building strong communities—with all credit unions joining to tell the story of their impact—will draw more positive response from consumers, from regulators, and from lawmakers than any amount of advertising ever will.
So…What’s your story? How have you used your credit union to build your community?
Comments
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Jill—Great post, and way to go for exposing a third side to a hotly debated topic :)
What specific and common ways do you think credit unions can “show” this community building beyond what they’re doing already?
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Thanks for the question, Ben. Wow… Turns out my answer could be another blog post all its own. I’ll try to limit.
Before I ramble along with a bunch of partnerships that have inspired me, I want to say this: Most of the time, there is no problem with the amount credit unions are doing; there is only a problem with how much they talk about it. I can’t tell you how many times I hear about a credit union that did the right thing to help a member become economically empowered, but then they never tell the story of what they did and the impact it had. I love that credit unions are so focused on members that they rarely ask, “What’s in it for me?” but I also know that credit unions will be able to better serve those same members if the public is aware of how much their local credit unions will do. That said, I think it is important that credit unions try to quantify their good deeds and tell the whole story. If there is a matched savings program, do not only count the total dollars saved, but also what members did with those savings to further advance their economic well-being. If financial education courses are held, do not just tout the number of people who attend the courses, but talk about the goals those members reached as a result of what they learned from the courses. After quantifying those results, make them part of your annual report, include them in your visits with legislators, and work within the community to promote those results and create some partnerships.
Credit unions are good at cooperation and will be most successful in positioning themselves as community builders through creating key strategic partnerships. These might include partnering with other credit unions, other non-profits, media outlets, government agencies, etc. and ALWAYS include partnering with the members.
For the fun part of my answer, here are a few of my favorite things:
Individual Development Accounts (IDAs)—These are some of the simplest and most brilliant tools I believe in. Boiled down, they are grant-funded, matched savings programs that members can use for high-return investments such as buying a first home, starting a small business, or going back to school. Each of these items is a great way for an individual to begin building wealth and credit unions who offer this type of program become a true partner in that member’s financial well-being, rather than just another tool the consumer must figure out how to work. Typically, these programs include financial counseling, which makes it even better. A credit union I worked with in Montana started an IDA program that was heavily funded by other credit unions. If that doesn’t exemplify the cooperative spirit…
Media Features—Some credit unions with strong relationships with local newspapers or news stations are able to create a regular column featuring financial tips and strategies for consumers. These are another great way to position credit unions as partners in personal financial success. (Note: This is not a column that would say, “Come to the CU for a low rate on an auto loan in order to become stronger financially.” but something more like an explanation of why a sub-prime mortgage is not a good idea.)
Partnering with Gov’t Agencies—Credit Unions should have a place at the table in meetings with any state task force on economics, financial education, or community building.
Essentially, whatever credit unions can do to put themselves in a position where they are seen as a partner to economic empowerment, rather than just a financial institution, is what they should do to create this image of credit unions as community builders. I started to write here about some of the unbelievable scholarship programs I have seen that help young people create their own success, about service to underserved areas where credit unions have taken the credit union to residents who lacked access to traditional financial services, and about the numerous credit unions that do physical labor to rebuild communities or homes, but with those examples I can go on FOR-EVER and you didn’t ask me what specific and common things credit unions are already doing, but what goes beyond what they already do to show their commitment so, after all that…here’s the bottom line:
Quantify your results, join with other community builders, and tell your story whenever you can (to members, to lawmakers, to the media, to the Kiwanis club…you get the idea.)
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You’ve danced the fine line between brand and ad campaign very well. Large ad campaigns rarely make everyone happy (think the WCUL superbowl ads a few years back) and would be just the type of thing that CU’s would spend an immense amount of time on and fight over the final product. But how can you get CU’s to coordinate are the people helping people philosophy. I’d like to think that many CU’s are just like that, but that isn’t really true. CU’s have to step up a lot if we want to be able to pull something like that off. While I agree with on the brand vs campaign approach, how do we as an industry do it?
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Jill, This is an intense topic! I personally am split on which side of the fence I sit regarding how effective, or appropriate for that matter, a nationwide branding for credit unions would be. I think the greatest challenge exists in how the credit union movement has had to evolve to ensure survival. My credit union started out serving one exclusive SEG; Delta Air Lines. Fast-track some 68 years later and we now serve over 100 individual SEGs and offer financial services to residents of 10 Metro Atlanta counties. That diversification of field of membership put us, and many other credit unions, in a position where we are now a competitor in the same industry where we are still a peer and an ally. I think this is where the greatest challenge exists in successfully executing a nationwide brand for credit unions.
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@ Robbie… Is it a cop out if I encourage the cooperative spirit of those in the CU world to jump in with their own opinions for making this happen?
@ Danvers… I want to clarify b/c I can’t tell if you’re saying you do or do not agree with me. I do not advocate for credit unions attempting to look the same as other credit unions any more than I advocate for Nordstrom and Neiman Marcus to use the same logo. What I want is for credit unions as a whole to be perceived as partners that empower communities and individuals to achieve financial stability and that help regular citizens build wealth, just like department stores as a whole might be perceived as a place where you can buy cosmetics and shoes and a suit. Rather than this meaning all credit unions look the same on the outside, it’s about making sure credit unions know the members they serve and take the steps to meet their needs. It doesn’t matter if that’s Navy Fed developing alternatives to help service men and women avoid predatory lenders that hang out near military bases, or it’s itty bitty Tri Valley Community FCU in East Helena, Montana knowing that domestic abuse is a problem in its community and offering services that help their members build resources to break the cycle.
I guess the questions then might become: How do you enforce it? How do you make it collective? How do you incorporate it from one CU to another? Truth be told, I don’t know the answer. (If I did, I think I’d have a pretty good consulting gig in my future…) but I think it’s a good sign that right here we have reps from a CU in Atlanta and another in Salem commenting on a message board to figure out how to build that better model of community involvement and collective philanthropy.
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As much as we mire in credit uniondom, I do believe our biggest issue is the perceived barrier to entry. I tried to sell my mom on credit unions yesterday, and she believed that to join she had to work for a public school. How to beat this preconceived notion? Well, a national branding campaign as Jill mentioned I believe would work. But why not take get the attention a national ad campaign would bring and address an issue? Collective philanthropy, the third camp Jill resides in, is the best way to do this. Is there a credit union out there who would not want to contribute to feeding children or sending the county’s sons and daughters to college? Why buy into Leann Rimes singing about credit unions when so much more could be done?
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@Jill,
You couldn’t tell whether or not I agree with you because I haven’t quite decided yet . I do think there’s merit to the idea, especially now that you’ve emphasized positioning the entire credit union movement as community partners as our differentiator in the marketplace. If the movement wants to build the perception of being a partner in the community I think we need to start with some measurable actions. You should check out the i3 project titled ‘Community Impact Center’. This could be the vehicle that gets the credit union movement at a place where we are making a measurable difference in the communities we serve, and would ultimately provide a foundation from which your campaign idea could be built!
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Yeah… When in doubt, there’s nothing like a good shopping analogy to clear things up. haha.
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I think brand campaigns tend to be about egos, not about results. There are hundreds of thousands of woulda/coulda been ad execs in every industry.
I do think the real brand magic is in the doing – REI being an excellent example. When was the last time your credit union gave you a dividend? We only have a few who do in the state.
Still, nothing drives me crazy like the ol’ “I didn’t know I could join.” In my opinion we need a PR/viral/internet campaign (not as glitzy or expensensive as a ‘brand’ or ‘image’ campaign) to push out one message:
Only one problem. The “find a credit union” websites (a critical component of this type of effort) I’ve gone to don’t show that I can join a credit union. I’m eligible for three.
Hmm. Maybe you CAN’T join.
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Jill,
Outstanding post, and terrific discussion! The two main reasons I support a brand vs. ad campaign are:
1. Developing and implementing ad campaigns bring out the differences in credit unions, and the CUs with the most money drive the bus.
2. Brand campaigns such as you are suggesting focus on our shared values as cooperatives, and core competencies (community-focused institutions).
I think the NCUF’s Real Solutions campaign is the closest thing I’ve seen to what we’re talking about.
It will be great to watch the discussion unfold – thanks for bringing it up!
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“After quantifying those results, make them part of your annual report, include them in your visits with legislators, and work within the community to promote those results and create some partnerships.”
The phrase you’re looking for, I think, is “outcome-based evaluation.” I worked in non-profits for 6 years, and my husband got his minor in nonprofit development. It’s been a huge deal in that world for probably the last 10 years: getting past [n] people being fed, housed, etc. and getting to how did that service improve the overall lives of those [n] people? In my experience, it’s difficult but valuable.
I love the idea of promoting our shared values in ACTION rather than in jingles, but then again, I tend to be an idealist. (My career trajectory thus far: nonprofits, followed by higher education, and now a credit union.)
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Re: mike and Winter
I agree fully that the barrier to entry issue is a big obstacle. Is anyone working on improving those CU search engines? Clearly that needs to be worked on. Giving a simple web address where people can go to find the CU that’s right for them would be a huge cornerstone in a viral/internet campaign. This is the stuff of Gen Y and can play an important role in gaining new younger members as well.
And yes, I very much so agree: branding is a direct result of the actions taken and spreading the word about how those actions have positively effected members’ lives. If you take action and spread the word, the kind of branding you’re looking for will come – simply as a positive side effect.
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Great video from the GarlandGroup
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Great post, Jill! Another good example of national campaigns are the ones used by VISA and MasterCard. Although they have financial institutions who individually market their cards, they still use their own marketing to promote their brand. VISA has its “Life takes VISA” campaign and Mastercard has its “Priceless” campaign. These campaigns have “feel good” messages that don’t really focus on the services they offer.
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