From time to time (and by that I mean about every week), I hear credit unions extol the virtues of a national branding campaign. In the same breath, I hear credit unions explain why such a campaign could never happen.
The reasons are numerous and varied, and it usually boils down to following sentiment: ‘how can thousands of credit unions come to a clear, differentiated and true brand promise’? Over the past few years, we have released reports on this topic here and here, but the sentiment still persists.
I recently came across a concise article authored by National Cooperative Business Association (NCBA) describing the branding initiatives of The Co-operative Group in the United Kingdom. This article should provide renewed hope to credit unions that a cohesive branding campaign is feasible and beneficial. If “The Co-operative” can get groups as varied as cooperative pharmacies, travel agencies, banks, and funeral parlors come to an agreement on a clear, differentiated and true brand promise, why can’t a group of credit unions that offer similar products and services?
Curious to hear your thoughts about this article.
This article was posted with permission from NCBA, and is sourced from their fantastic Cooperative Business Journal publication.
Comments
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The message of a national campaign is much easier than the funding.
The purpose of such a campaign should be to raise consumer awareness of credit unions and what credit unions are. Study after study shows that people (1) don’t know what credit unions are, and (2) that they can join. The credit union industry doesn’t need to argue about a brand promise. Just focus on these two points.
There are hundreds (if not thousands) of credit unions who squander their precious marketing capital every year educating people in their market about the basics of credit unions: not-for-profit, member owned, local, better rates and fewer fees. Why are so many credit unions saying the same things and trying to fight this fight on their own?
Advertising is great for building awareness—something credit unions desperately need. Branding is great for shaping perceptions, but you can’t shape someone’s perceptions of you if they don’t know who you are, what you do and why they should care.
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There’s no doubt that the value proposition for America’s credit unions lies in the cooperative principles defining its business model, suggesting that if there ever was to be a national branding campaign, it would need to sink its roots into those principles.
The results realized by the Co-operative Group demonstrates the validity of this thesis. Judging by their success, one has to wonder why America’s credit unions are hesitant to employ a similar strategy.
Hopefully it’s not that Americans find ethical behavior to be of no value when it comes to business. But then again, when we consider the perception of Wall Street and its behavior, no doubt not very different now than what it was before the recession, we could easily conclude that ethical behavior and American capitalism are an oxymoron.
I say if there ever was an opportunity for credit unions to distinguish their brand and stand out in the marketplace, there could not be a better time for us to do so
—and, to do it by modeling what our cooperative cousins are doing in the UK. It’s in our genes.Link to this comment
A nationwide campaign is possible when the equation is fulfilled and balanced.
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