I used to take great pride in being able to name each of the six flags that have flown over Texas (France!?). But none of those banners included a red maple leaf … until now. The Young and Free program, cooked up at BC-based Currency Marketing and popularized by the inimitable Larissa at Common Wealth CU in Alberta, has come to Texas. Here are three reasons it might not work.
1. Spokesperson risk
Larissa at Common Wealth is unique. Her stick animation about the difference between banks and credit unions has become a hit in the credit union pond. Her blog posts, cartoons and video updates drip with verve.
Any Texas spokesperson will have to breathe digital media production and find a constant stream of interesting tidbits to feed the audience. Common Wealth got a Javier Sotomayor in Larissa, and the bar remains high.
2. Account features
My biases run toward great products as the honey to attract (and keep) young adults. I appreciate the need for marketing, but take a recent multi-million dollar Chevy ad campaign claiming “you’ll fill up less often.” It’s whitewash over the fact that, these days, fewer people want to fill them up in the first place. Same is true in financial services: It’s hard to keep people for long if your product doesn’t work for them.
By these standards, TDECU’s GO2 account appears serviceable but plain. Free access to the 32,000 Allpoint ATMs is a truly good benefit, but the rest of the listed features could be from pretty much any bank or credit union around.
The upside: If Young & Free Texas is a hit, the credit union’s cost of funds stays low.
3. The cost
I have heard several numbers floated from people who have gotten the Young & Free pitch. All of them are mid six-figure numbers, which Tim McAlpine doesn’t deny. The gist of his explanation to me: The cost includes complete, hands-on guidance from Currency Marketing and a proven attention-getter. Compare that to the alternate strategies for attracting young adults; a branch is a lot more expensive and offers only nominal differentiation.
True, but a branch is also a tangible asset. Intellectual property doesn’t amortize as cleanly.
A great program
Now for the easy part. I have yet to see a better integrated young adult media campaign from a credit union or a bank (though I’m keeping my eye on PNC’s newly launched Virtual Wallet). Common Wealth has not strained to make finances cool; they’ve simply found a cool voice and let their free account drag on the coattails.
The Common Wealth results I’ve seen from Currency Marketing’s Tim McAlpine, show tremendous membership growth (about 10X higher per month in year-over-year comparisons between 2007 and 2008). Tim also claims $179,000 in unpaid media coverage in the seven months ending on April 30, 2008, and $2.6 million in Young & Free deposits during the same time.
In the face of such results, my points above are questions more than criticisms.
The verdict
I like Young & Free Alberta, and with Trey Reeme on the case, I’m sure to like Young & Free Texas. This is a blockbuster idea that depends on steady execution.
It’s also an idea limited to big credit unions. The cost is significant (though I don’t dispute the potential ROI) and any participating credit union needs to serve all or most of a state in its field of membership for it to work.
There are a few social media lessons here, though, for all the credit unions that want to go it alone:- Craft your online content around money (or “free” or “saving”) and not around the credit union itself
- Integrate an actual financial product into what you’re doing, and let folks apply for it online
- Find an original voice. Press release blog posts = 0 comments (I know, I know, we’re working on it here at Filene)
- Give stuff away (I’m tempted to apply for the TDECU job to get the Mac laptop, the cameras and the Prius)
Comments
7
Thanks for the post, Ben!
And I wholeheartedly agree with your four social media lessons – especially crafting content around ideas.
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I should also point out the Financial Brand post that calls out a
similaridentical program at a Dallas credit union. Right down to “spokester” ...Fast times down in Texas.
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I have to agree that duplicating a great idea rarely also becomes successful. iPods are great, but what the heck is a Zune?
I’ll be looking forward to results from these two look-alike campaigns. Our credit union has recently partnered with a media agency and challenged them to help us attract a younger audience and drive membership (much like Common Wealth did to start up the Young and Free campaign.)
I showed the agency leadership the Young and Free campaign as something that has been a successful answer to that same challenge, but stressed we’re not looking for duplication. Their proposals are coming in the next couple weeks. Here’s to hoping they create a home run for us!
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Pretty pathetic of Resource One, they just ripped Young&Free (see financial brand for all the details).
There’s speculation they used an ad agency or something?
Well, whoever Resource One Credit Union used they should probably get their money back. Their…”mylifemymoney” back.
Bad play on words, but you get the point.
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Young and FreeSM is certainly an exciting program and has worked very well for Common Wealth CU. With the attention it is receiving, I hope it opens thoughts in the minds of many credit union marketers on how to approach different generations and ethnicities. One word of caution. Common Wealth has service marked the phrase, and has copyrighted the materials. After speaking with Jeff Mulligan, I believe he finds intellectual capital rights in all that his team has created. Therefore, it would be wise to consider these points before duplicating the process.
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Hey everybody!
If you guys haven’t been watching, I’m one of the contestants for the Young and Free Texas competition!
Feel free to mosey on over to http://www.youngfreetexas.com and leave a comment on my video, or one of the other competing videos!
Right on, DeAndre’
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Friends!
If you haven’t been keeping up with the Young&Free Texas Spokesperson Competition, they’ve narrowed down the applicants and I’m one of the top three
If you get a chance, mosey on over to www.youngfreetexas.com and check out our various campaigns! And don’t forget to cast your vote for the Young & Free Texas Spokesperson! Do it! It’ll be fun!
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