Mark Arnold > speaking • branding • planning

Vehicle Service Reminders and Discounts Enhances Loan Value

On the Mark Strategies recently visited with Ed Bourgeois, President and CEO of MyEZ Car Care Auto Service and Travel Network. MyEZ Car Care is a way for credit unions and banks to add value to their auto loans; making it less a transaction and more of a value added experience.

OTM: What does MyEZ Car Care do for consumers?

Bourgeois: I remembered clearly from years working in banking and lending that many people, even with brand new cars, didn’t take time to maintain their vehicles. By that I mean regular oil changes, tire rotations, vehicle performance check-ups; pretty much all the things recommended that people do to maintain and prolong the lives of their vehicles. As lienholders, we look at vehicles as collateral and of course have an interest in their upkeep. As consumers, people care about their cars as well but may lack the time, organization or commitment to keep regular records and stick to maintenance schedules. That’s where MyEZ Car Care comes in.

OTM: In what ways can MyEZ Car Care help consumers, including bank and credit union customers with car loans, do that?

Bourgeois: MyEZ Car Care makes it simple. With tools like electronic glove box desktop and mobile app, consumers can easily keep track of their vehicle maintenance appointments and jot them down. They can also review real-time consumer recalls on vehicles should that happen. It’s a great way to stay in-tune with your vehicle.

OTM: What are some other advantages to using MyEZ Car Care?

Bourgeois: When consumers use MyEZ Car Care, they have access to our large and growing network of service providers, including discounts on auto repair, service and maintenance as well as travel discounts at hotels, rental cars and vacation destinations. Consumers can save big by essentially getting fleet pricing using these discount options available only through MyEZ Car Care.

OTM: How does this help credit unions, specifically?

Bourgeois: We’ve worked hard to co-brand everything about MyEZ Car Care for our credit union partners. The credit union logo will appear on all materials, including the discount card. This helps with credit union top of mind and brand awareness efforts. MyEZ Car Care offers credit unions a terrific co-branded program that helps their members save money and safeguards vehicle collateral to a greater extent that before. We have over 40,000 current users and look forward to growing our relationships with credit unions and their memberships.

For more information about MyEZ Car Care visit their website at www.myezcarcare.com.

Do Your Employees Own the Place?

 

A new Greek restaurant opened recently in our neighborhood. As a huge fan a gyros, my lovely wife and I decided to try it. We were one of their first customers on opening week. Our first experience there was amazing: the owner greeted us warmly, talked at length about mutual acquaintances and provided amazing service. She even gave us a complimentary bottle of dressing to take home.

So it wasn’t long before we returned. Our second trip was just as wonderful: amazing food combined with excellent service. We were about to be regulars. Until our third time there.

What happened on that visit? The owners weren’t at the restaurant. Instead, their routine employees were running the joint. While the food was still great the service was less than stellar. It was clear their employees were not as invested as the owner.

Is it that way at your credit union or bank? Do your employees act like they own the place? As executives we want our employees to care. To care about that next loan like we do. To care about serving the consumer as much as possible. To care about their branch as much as a manager.

My guess is the things that keep us up at night and thinking in the shower (our net income, our growth, our brand, our service, etc.) the average employee is not all that concerned about.

So how do we get employees to own the place? Here are three suggestions:

(1)  Link overall credit union or bank performance to pay—Everyone cares about their income. If you don’t have a profit sharing or bonus plan in place that ties pay to how well the organization performs then employees will not be as motivated.

(2)  Communicate that the bank or credit union is just as much theirs as it is yours—While the external motivation (pay) above is critical, we really want employees to have more internal motivation. The only way to do that is to demonstrate to them that it is their bank or their credit union.  Let them know you want your financial institution to succeed for them (and not just you).

(3)  Conduct mystery shops on a regular basis—Accountability breeds success. My guess is the owners of the Greek restaurant had no idea about what the service was like when they weren’t there. How can you find out what the service and sales are really like when you aren’t around? You can secretly shop your employees (which is also part of a marketing audit). Employees are much more likely to be on their toes if they know at any point they could be the subject of a shop.

The more your employees feel they own the place, the more ownership they take. In some ways, you don’t own your financial institution—your employees do.

Everything Communicates

Everything in your credit union or bank is communicating. While marketing pieces are important, they are just a tiny blip on your branding radar. As Howard Schultz, CEO of Starbucks, once famously said, “everything matters.”

But not only does everything matter, everything communicates. There are thousands of details
every day that are sending messages to consumers about your financial institution. Here are five:

(1) Your voice mail. Your voice mail is not a message center. It’s a branding opportunity. Turn your voice mail into a sales tool by weaving in a brand tagline or message. Or do something totally unique with it. Clever messages stand out in a hyper-competitive market. Most voice mail messages are boring, which communicates that your financial institution is boring.

(2) Your online digital experience. Communication doesn’t just happen in person or at a
branch. In fact, more and more communication is happening online and in the digital channels. So ask yourself this question: how easy is it to do business online with your credit union or bank? The answer to the user experience (UX) question says a great deal about your financial institution. Your online channel quickly communicates that you are easy to work with or you are a dinosaur.

(3) Your greeting. Three seconds. That’s all you have to make that first impression. When someone walks into your branch or your office, how do you make them feel? The initial greeting should be warm, casual and authentic. Don’t put on the fake charm or smile (people will see right through you). A warm greeting goes a long way in communicating you have a warm brand.

(4) Your dress code. How do your employees look? While dress code (business, business casual, casual, etc.) is important, let’s dig a little deeper. How do your employees really look—from a personal grooming standpoint? Is their hair messy and their clothes faded? People form first impressions immediately (that’s why they are called first impressions). Before your employees utter a word the consumer in front of them has already sized them up—most likely by what they are wearing.

(5) Your bathrooms. It’s called the bathroom smell test—and it’s done as a routine part of marketing audits. How your bathrooms smell and look sends a strong (one way or the other) message about your credit union or bank. A brand expert once famously walked the Toys R
Us CEO into the female restroom at one of his stores and asked, “would your wife feel comfortable going to the bathroom in here?” The point was made.

Like it or not, everything communicates.

Winning Strategy: Exceed at one Thing

Is your credit union or bank still trying to be all things to all consumers? If your answer is yes, you certainly are not alone. Many Financial institutions have resisted the idea that excelling in one area of business is a wise business decision. Instead, their strategies include adding locations and developing products and services which enable them to serve the masses. There’s a theory called the Myth of Excellence which challenges that idea.

The Myth of Excellence: Why Great Companies Never Try to be the Best at Everything, written by Fred Crawford and Ryan Mathews, uses research from thousands of businesses and consumers around the world to suggest that competing in one component of business is what makes companies successful. They advocate a strategy called consumer relevancy, which advocates dominating in one element of business, differentiating in a second and being at industry par
on the rest. There are five components on which to compete – price, product, service, location and experience.

By using The Myth of Excellence approach, companies become successful because they focus on what they do best, based on what is important to their key demographic. When they can focus on the customers/members most important to their business, they can start to find opportunities they didn't realize were there. When they dominate in one area, they can direct more resources to that area and in the process, reduce operating costs, boost profitability and engage in meaningful dialogue with consumers. Companies with that kind of focus have no problem communicating their brand to their customers. The Myth of Excellence simplifies that and is widely used as a strategic planning tool by successful organizations. On the Mark Strategies uses it in our planning sessions with financial institutions.

The first step for credit unions and banks in using the Myth of Excellence is to decide which primary attribute to position their brand around. - price, product, experience, service or location. You should make this choice with the wants, needs and expectations of key customers/members in mind. Do not assume you know what consumers want. Listen to them, examine your organization's strengths and weaknesses and decide where your financial institution dominates in the marketplace. On a scale from one to five, where five is the highest, choose one area where you will score a five.

For the remaining steps, and more insight on how the Myth of Excellence can work for your financial institution, read the latest issue of my e-newsletter, On the Mark.

Change Happens: Navigating a Successful Data Conversion

 

Data conversions and technology systems. Just the thought is enough to make some financial institutions cringe. It’s not just the million of technology and project details that is challenging about a conversion. Getting through one also requires a great deal of communication. 

In a recent white paper (Change Happens: Navigating Successful Credit Union Data Conversions) now available for download through Syngergent Technology Services, we explore the best practices when it comes to communications and data conversions. 

As more credit unions and banks examine the possibility of changing their technology systems (including core processor, payments, mobile platforms, etc.), they must also consider the best ways to proactively inform both internal staff and external membership about those changes. While ensuring all the technology issues are resolved in a conversion is critical, internal and external communication plays an equally important role in the project’s success. A non-existent or poorly planned conversion process can have disastrous results, while a thoughtfully planned-out and executed course of action can ease anxiety and smooth over bumps in the road during the conversion. 

The white paper examines the process through two key lenses: employees and members. The paper gives communication tips for each key group and also offers tools for improving your communication. 

“Constant communication through conversation, email, newsletters, and meetings ensures that everyone is aware of the changes that are coming,” says Samantha Noyes, VP of Member Service and Operations with Oxford Federal Credit Union in Mexico, Maine (16,000 members, $131 million assets) in the paper. She also added “It is also important that employees understand that each individual has a role in the success of the conversion. Helping them see and understand what they can do to assist in the process, whether it is on a large scale or a small scale, gives them a sense of ownership in the process.” 

Steering your credit union through a core systems conversion process is not an easy task. Preparing well in advance, keeping both staff and members in the information loop and looking at the best practice ideas from others who have already gone through this can help. 

The white paper Change Happens: Navigating Successful Credit Union Data Conversions gives you ideas and suggesting for making a potential challenging task an easy one. 

Credit Union Using Stone Age Dad Blog To Engage Consumers

Several credit unions (see Verity Credit Union’s Verity Moms and Fort Worth Community Credit Union’s Gabby) have used blogs and social media to engage females. One credit union is going in the opposite gender direction with its Stone Age Dad blog/social media strategy. 

Stone Age Dad is the brainchild of Neighbors Federal Credit Union (Baton Rouge, LA; $600 million; 68,000 members). The blog is a humorous take on pregnancy and the preparations that come with being a first-time parent from a guy’s perspective. All done through the lens and sponsorship of Neighbors Credit Union. 

The Stone Age Dad is actually Brett Reynolds, vice president of marketing for Neighbors Credit Union. 

“The blog is primarily about engagement,” Reynolds says. “We’re actively looking for ways to engage our members and to make a more personal connection with them.” 

As a financial institution, Neighbors FCU is not just doing a dad or parenting blog just to blog about something random. They are linking their social media efforts to their overall strategy. 

“Obviously there is a financial aspect to starting a family so we’re working budgeting into a lot of the posts” Reynolds said. “We are also developing a financial literacy seminar on getting your financial house in order for parenthood. We already conduct over 50 financial education classes a year for members and the community, almost half of them are held in our branches. The blog gives us a new topic to cover and is a great addition to the campaign.” 

Neighbors FCU is also seeking to use the blog to humanize its brand. “We are using it to spotlight our financial literacy program and hoping it serves as a conversation starter on our social media platforms,” Reynolds added. 

The local press (including the Baton Rogue Parents Magazine) has already generated additional coverage for the blog and credit union. “We’re beginning to see comments from readers,” Reynolds said. “Young adults can relate because they’re currently going through the same process or recently just started their own family.” 

So what is next for Reynolds, his Stone Age Dad blog and the credit union? After all, in less than nine months he’ll move expecting father to actual dad. 

“Nothing is finalized yet but we know that we do want a blog element included in our online presence,” Reynolds said. “In some ways, this is a test to see if the formula works.  If we can find the right contributors, we may do a series on life experiences where Stone Age Dad would become the first of many."

 

Your Employees Need to Cross the Line

My lovely wife is a first grade teacher. It’s a challenging job to say the least. Every day she has to encourage her students to learn. To help reinforce the concept that Mrs. Arnold’s Room 138 is a place of love and learning she put a label on the bottom her classroom doorframe. It reads “The Learning Line.” Every day when little first graders enter her classroom that line serves as a visual
reminder that they are there to learn.

It’s no different when we go from first graders to adults. There are also a few “lines” your employees need to cross as well.

Here are three:

(1) The Learning Line. Learning doesn’t stop in grade school, middle school, high school or college. Your employees should be lifelong learners. And don’t just encourage employees to learn—make it a part of their job. For example, I’ve always required those working for me to read business books (hopefully four per year or one per quarter). But it’s not just reading: allow them to attend training sessions, webinars, local learning events, etc. Is it an expense? No—it’s an investment. The reality is the more your employees learn, the more your company earns. Don’t let your staff stay where they are with knowledge: make sure they cross the learning line.

(2) The Sales Line. Many employees are still afraid of the “S” word. Get over it. The reality is everyone is in sales. Rather than fearing sales, we should embrace it. The better your employees understand what sales really is (educating, teaching, serving, etc.) the better they will understand that sales is not a dirty word and something only for the used car lot and late night infomercials. So let’s change their mindset. Train them about sales. Coach them on how to sell. Improved sales won’t happen just with a wish. Don’t let your staff stay where they are with sales: make sure they cross the sales line.

(3) The Risk Line. Many companies (especially credit unions and banks) are risk averse. We are inherently conservative. That mentality can bleed into our employees as well (sometimes to the point where they are afraid to make decisions or offer improvement suggestions). If you (or employees) are not failing every now and then, then it means you are not taking enough risks.
Here’s an idea: encourage failure every now and then. You can take risks with your employees, your strategies, your marketing, and your tactics. Don’t let your staff stay where they are with ideas: make sure they cross the risk line.

Those are three lines you want to encourage your employees to cross.  And if they don’t? You can always do what my wife does when one of her first graders gets out of line: make them stay inside
for recess.

The Seven “Bs” of Service & Sales

Service equals sales. That is a simple but true formula: the better you serve consumers the more sales you typically have. Too many times we separate the two, when in fact they are often one and the same. We also overcomplicate what is involved when it comes to getting our front-line staff to focus on service and sales.

We give them (too) basic training. We coach them. We have them practice. We also need to give them tools to help them focus on what is important. So we crafted the “Seven Bs” reminder tool you can use with your front-line employees. If you can get your staff to “be” these seven traits, your sales numbers will increase. So use this tool: share it with your front line folks, talk about it at your next staff meeting, customize it, coach to it, print it, review it, etc. Just use it.

Here are seven “Bs” your staff can do when it comes to providing better service and sales:

(1) Be knowledgeable. You can’t sell what you don’t know. You must know your products and services. And not just a little: a lot. Honest gut-check time: how well do you know your products and services? No matter what position you hold, there are probably a few products you could know better. Make sure you spend time on a regular basis reviewing the features and benefits of all your credit union or bank offers.

(2) Be real. The best service and salespeople today are not smarmy. Rather they are real and authentic. Be yourself, not someone else. Think about the last time you received excellent sales or service. More than likely the salesperson was authentic.

(3) Be a user. While the first “be” is critical (knowing your products), that is just a start. You have to use them as well. How you can you effectively encourage consumers to use your bill pay product when you don’t use it yourself? You can’t. If there is a reason you are not using your own financial institution’s products and services then there are deeper issues you must
explore. It’s much easier to talk to prospects about how you use the products
and how they benefit you personally.

(4) Be positive. You have to give your best every day. Not your average—your best. Whether you have a fight with the spouse on the way to work, your kid spits up on your nice shoes or your dog gets sick as you’re leaving, once you walk into the doors of your employer you must set all that to the side. Yes, we face challenges all the time but when dealing with service and sales we must remember that there is no such thing as a bad day.

(5) Be an expert. It’s not enough to know your products and use your products. You must also be an expert in your products. No one should know more about financial matters than you. People buy from experts. You are not a loan officer, teller, new accounts representative, or service advisor. You are an expert.

(6) Be specific. Details are critical with service and sales. Specificity doesn’t come with a general knowledge about your members, customers or products. The more you know about the person you are dealing with (their current situation, their family, their finances, etc.) the more you can match a particular product or service to their needs. You can’t treat everyone the same or offer everyone the same product or service. You must be specific with each individual.

(7) Be questionable. Ask a lot of questions. And then listen attentively to their answers. The only way you can effectively do the sixth “be” above is to ask questions. You must also ask be open-ended questions. For example, rather than asking, “do you want to open a checking account today,” ask “what are you looking for in a checking account.”

Improving service and sales does not happen by accident. It takes initiative. It takes the seven “Bs.”

Things We Say Too Often At Credit Unions and Banks

Let’s face it: the business world is full of annoying clichés, trite phrases and overused “hip” terminology. Credit unions and banks are no different.

It’s time to examine our own speech and refresh it. Aren’t there things you’ve heard so many times at your shop that if you hear it again, you’ll smack your head against the wall? Consider the following four things we say too often in credit unions and banks.

1)      What’s the ROI of … ? Before all the number-crunchers freak out, I do believe ROI is important, especially when tracking marketing results. However, marketers readily know that actually tracking the ROI of many efforts, such as mass advertising and branding, is extremely difficult. While we must keep an eye on ROI, it should not crack a whip over our heads. The next time your CEO asks you for the ROI of branding, for example, ask him or her what’s the ROI of their mother. You’ll get odd stares and will initiate (hopefully) some great conversation. Use this example at your own risk!

2)    We need a sales and service culture around here. Welcome to the 21^st century! Of course you need a sales and service culture. Every bank and credit union does. It’s a must-do. We must get out of the habit of thinking of themselves as order-takers and embrace the reality of what we do: providing a retail service to customers. Yes, I said retail. Just like Apple, Amazon or Neiman Marcus. Banks and credit unions that learn to shift to this role will prosper while those that don’t will wither. Stop talking about a sales and service culture and implement a retail experience culture.

3)     How satisfied are our consumers? What a lame question, yet we hear it all the time. If all you care about is satisfied customers, you should lock the vault, turn off the lights and close up shop now. A satisfied customer means very little. A wowed customer, a blown-away with your service customer, a captured-by-the –heart-forever customer, that’s where it’s at! If all your customers are is merely satisfied, they have no real reason to stay an active with your financial institution. The competition will quickly lure them away. Your bank or credit union must move beyond the search for “satisfied” customers and learn to cultivate “I just got my socks knocked off at the bank or credit union” customer. Satisfaction is worthless; loyalty is priceless.

4)     We need to do a promotion for … Credit unions and banks must also move away from the typical and stale promotion calendar mentality of pushing certain things at certain times of the year, like used car loans every fall. To succeed in the new consumer culture, you must push and promote your brand, not your products. Your brand, as the spirit and voice of your bank or credit union, will (again, hopefully) bring new customers in the door. Once they’re inside, wow them with your products. Make overall brand and not specific products the focus of your marketing and communications efforts.

There you have it: four things we say too often in banks and credit unions, the overused clichés that should send all seasoned executives running.

 

Get Out of Your Bubble

As credit union and banking executives, we tend to live our lives in bubbles. We talk our own language (debt ratios, risk based lending, return on investment, margins, spreads, etc.). The reality is consumers don’t think this way. Nor do they care. As leaders we must get out of our bubbles and look at our financial institutions from consumers and employees’ viewpoints.

Here are some bubbles we need to break: 

(1) Get out of the executive bubble.

When was the last time you talked to a member or customer? Not in a political, glad-handing way but truly engaged them in a conversation (asking them what they like and don’t like about you)? We tend to sit in our ivory towers and think we know what consumers want. A great way to get out of the executive bubble is to spend some time on the front line. Maybe serve as a teller for a day. Perhaps answer the phones in a call center (that will probably give you more information than you care to have!). You can’t market to consumers unless you know them. And you can’t know them if you are in your own world.

(2) Get out of the marketing bubble.

Have you ever looked at your marketing from a critical eye? We all need accountability, including marketing. The reality is the marketing department is probably juggling so many projects they may not be spending time to analyzing their efforts or their pieces. A great way to get out of the marketing bubble is to conduct a marketing audit.

(3) Get out of your management bubble.

Managing people is hard; many times we’d rather complete a project than converse with one of our employees. As leaders, we have projects to complete. Yet sometimes in our project rush we lose sight of our own people. One of the best ways to break the management bubble is talk with your folks without an agenda. That’s right—manage without a list of tasks you want them to complete. One idea is to give every one of your employees 30 minutes of your time each week where they set the agenda. They can talk to you about anything they want (their career, their job, the financial numbers, something personal, etc.). We often talk about empowering employees; one way to do that is to let them control the agenda.

(4) Get out of the policy bubble.

It seems like as financial institutions we have a policy for everything: lending, H.R., audit, social media, etc. You name it and there is probably something in writing for it. Rather than look for ways NOT to do something (for example, make a loan) maybe we should look for ways to make it work. While policies are important, there should always be exceptions. We can become extremely rigid as financial institutions. The best policy you might have is pretty simple: our policy is to help people.

Bubbles protect us. Bubbles insulate us. Bubbles blind us. And ultimately, bubbles prevent us from growing.