Mark Arnold > speaking • branding • planning

CU Tell-a-Friend Offers Online Alternative to Traditional Member Referral Programs

Member referral campaigns, also sometimes referred to as membership drives, are about as “old hat” as it gets in credit union marketing. For most credit unions, it’s an annual or semi-annual effort that brings great intentions but little in the way of new and innovative thought to the table. Geezeo, is looking to change this with its new CU Tell-a-Friend online member referral engine.

The typical member referral program is management-intensive and not overly member-friendly. Credit unions generally have printed referral cards or forms available in branches. Members must pick them up, fill them out and submit them for the specified referral bonus (usually in the $25 range). A credit union then relies on the referred potential member to actually sign up, then complete data input on the new member into its computer system. There are plenty of pitfalls and black holes in this cumbersome process.

This is where CU Tell-a-Friend comes into play. “We are destroying the box on traditional member referral programs,” says James Robert Lay, president of PTP New Media, which partnered with Geezeo on the CU Tell-a-Friend platform. “Instead of thinking about member referrals as a once-a-year campaign, we want credit unions to view them as part of daily operations.”

Using CU Tell-a-Friend, members can refer people using a series of simple online data submission screens. A growing number of credit unions are now using this member growth tool, including 1^st Advantage Federal Credit Union, Keesler Federal Credit Union and Comstar Federal Credit Union.

Jim Craig, vice president of marketing at 1^st Advantage Federal Credit Union, says the idea behind the referral engine is to realize an increased volume of new incoming members at a lower overall acquisition cost than traditional methods often involve.

“We also look at how CU Tell-a-Friend compares to traditional referral methods,” added Lay. “Geezeo has found that in referral programs with a small financial incentive (the average is around $25), credit unions can see a 20% leap in referral activity. In addition, they found that by asking for referrals online or through email, referrals increased 12% when compared to traditional methods like statement inserts, newspaper ads and direct mail.”

CU Tell-a-Friend further enhances online sharing capability by providing seamless Facebook and Twitter integration so members can share the good news about credit union membership with their circle of social media friends and family. An experience measurement tool, known as CU Follow-Up, allows for additional growth through member feedback while cross-selling products and services.

Member acquisition and retention are traditional challenges faced by many credit unions. The CU Tell-a-Friend online member referral engine offers an interesting online twist and shot in the arm to this venerable growth platform.

What Business is Your Credit Union In?

We often label businesses. Apple and Google are technology companies. McDonald’s and Wendy’s are fast food chains. Wal-Mart and Target are retailers. So what business is your credit union in? Hopefully you didn’t answer “banking,” “credit union,” or “finance.” Boring, boring, boring. And not really all that accurate.

Thinking your credit union is in the finance or banking industry is short-sighted and limits you. Here are a couple of examples to consider. Chick-Fil-A does not consider itself in the fast food industry. Rather, they see themselves (and try to position their brand) around service. Another example comes from Starbucks. One of their front line employees—not their CEO—famously said, “We’re not in the coffee business serving people. We’re in the people business serving coffee.” In the book Grow, John Hendricks, founder of The Discovery Channel, said, “When we launched in June 1985, I told everyone, ‘Let’s not say we’re in the cable business.’ I didn’t want us to limit ourselves.”

So what about your credit union? What business is your credit union in?

Here are some possibilities:

(1)    People—First and foremost, credit unions should be about people. Go ahead and trot out the phrase “People Helping People.” The phrase may be outworn and outdated, but the principle is still true: credit unions are (or should be) about people. If you put people first, the profits will come. Applying the Starbucks quote, “credit unions are not in the financial services business serving people; we’re in the people business serving financial products and services.”

(2)    Service—Many financial institutions are trying to compete on service. And that’s the problem: it leads to little differentiation. However, from an employee mindset and brand positioning perspective, credit unions should be in the service industry. That means fast, friendly and engaging service.

(3)    Money—One long-time credit union board member once told me, “if you want money, we have it; if you have money, we want it.” We handle people’s money; that’s what credit unions do. But it’s more than just money: money is just a means to an end for most folks. The money helps people send their kids to college, buy them their first home, retire to their dream spot, or accomplish some other lifelong goal. But credit unions are the ones who can help with the money side of the dream.

So what other business do you think credit unions are in?

Four ways to Maintain a Consistent Brand

I’ve recently had the opportunity to conduct marketing audits for a few clients. One thing quickly becomes apparent in most audits: many credit unions struggle with maintaining a consistent brand. You can have a brand vision, know your targets and train your staff—and still not have a consistent brand.

Two of the three “Cs” to a strong brand are clarity and constancy. But it’s that third “C”—consistency—that can cause credit union brands to struggle.

Here are four ways to maintain a consistent brand:

1. Coach your staff—Branding often fails at the staff level. Your staff must live your brand every day. You can’t say, “We’re the friendliest credit union in town” and then have your receptionist or tellers not have a welcoming attitude to members. Coaching does not refer to quarterly or yearly reviews. Good coaching takes place every single day. How often are your managers coaching your employees about your brand standards?
2. Incorporate branding elements into mystery shops—Once you coach your staff you have to monitor them. Conducting mystery shops is a great way to receive feedback on how they are doing. Mystery shops shouldn’t just offer feedback on your staff; a good mystery shop program will also examine your credit union’s brand. For more information on mystery shops, check out the post, “Mystery Shops Give Valuable Feedback.” Are your mystery shops giving you insight on your brand?
3. Examine every area of your credit union through the brand lens—With branding, everything matters. From the boardroom to the break room, everything matters when it comes to branding. Some overlooked areas could include bathrooms, employee desks/offices (note: remove the clutter!), branch signage and dress code. Does everything at your credit union match your brand?
4. Conduct a marketing audit—One of the most comprehensive ways to ensure your brand is consistent is to perform a marketing audit. You don’t have to pay a consultant for the review; you can simply have a marketing professional at another credit union examine your credit union while you return the favor. For more information, check out the post, “How a Marketing Audit Improves Your Credit Union.” When was the last time you conducted a marketing audit?

Ultimately, building brand consistency takes time and accountability. As your credit union takes the above four steps you will also continue to increase your brand’s consistency.

Interactive Marketing Will Continue To Grow

Is your credit union using interactive marketing tools to reach its members? According to a recent Forrester Report, you should. The Forrester Report (“U.S. Interactive Marketing Forecast, 2011 to 2016”) strongly points to steady growth in the importance and use of interactive marketing. By interactive marketing, the report refers to:

• Search marketing
• Display advertising
• Mobile marketing
• Email marketing
• Social media

The numbers cited by Forrester include $77 billion (the same amount marketers currently spend on television ads) devoted to interactive advertising by 2016. The report also goes on to say that the above-mentioned marketing tactics will grow to encompass a full 35% of all marketing budgets in the same five-year projection.

A 2011 Mashable report agrees. A full 70% of marketers surveyed planned to increase their social media budget by 10% or more. An increased focus (and spend) was indicated in a 2011 Small Business Trends survey, posting 60% of marketers putting more into email advertising and 37% raising mobile marketing and internet search budgets. Finally, the 2012 Bank & Credit Union Marketing Survey chimes in with stats referencing financial institution marketers placing increased emphasis on “e-strategies” in 2012.    

The numbers are impressive and beg the question: what is your credit union doing in these areas?

That interactive marketing is here to stay and will only continue to grow in importance is undeniable. Credit unions large and small, metro and rural, must begin exploring (if they haven’t already) these new and innovative ways of reaching members and potential members. A flat and unappealing website (basically a web-based version of your brochure line with only home banking and bill payment) won’t cut it.

Credit union marketers must also consider the budget implications of the Forrester Report. What percentage of your overall marketing budget is going to traditional (print, direct mail, billboards, etc.) and how much is going to interactive? We all know intuitively that interactive is the way to go, but sometimes it is hard to let go of the traditional (especially when it comes to transferring some of those marketing dollars). You either have to make some serious adjustments or add to your current marketing budget if you want to do interactive correctly.

To reach members and potential members in the Digital Age, credit union marketers must swim (not wade) with the tide of interactive marketing.

The Egg McMuffin of Credit Unions

 

Note: This article first appeared in The Texas Credit Union League's Lone Star Leaguer.

McDonald’s is currently running a clever ad campaign (“The McMuffin of….). You can view the new McDonald’s video on YouTube; it references the “The Egg McMuffin of Boyfriends,” in which various people (a couple, a car salesman, a TV weather forecaster) refer to their their significant other/vehicle/beach day as the ultimate of all such things (the “Egg McMuffin” of whatever).

The point behind the commercial is to set-up a particular McDonald’s food offering (the Egg McMuffin) as the ultimate of something good in a consumer’s mind. McDonald’s has hit upon an intriguing play on words. They’ve elevated a seemingly low-key (but important part of their menu) to minor-league rock star status, the B-list of breakfast food celebrities, if you will.

What if we stretched the McMuffin concept to apply to your credit union? Wouldn’t it be great if you could get members to refer to, say, “My credit union is the Egg McMuffin of banking,” or “My credit union is the Egg McMuffin of auto loans,” or “My credit union is the Egg McMuffin of checking accounts.” While McDonald’s might throw a “Mcfit” about copyright infringement, the point is valid: credit unions are the gold standard in financial services.

How can your credit union accomplish this distinction? It doesn’t take “billions and billions served” and more marketing dollars than the entire GDP of some small nations. All we really have to do is make sure we stick to the roots of what makes the credit union movement special. That, as a natural byproduct, will highlight what makes us different from banks as a value-packed financial services alternative.

According to a recent article, more than 600,000 people switched to credit unions or community banks as a result of last year’s Banks Transfer Day. While a lot of that migration was undoubtedly fueled by the extremely bad press big banks got about excessive fees, credit unions cannot rely on this one-and-done media event to keep newly-converted members coming in the door. They must still educate and reinforce members about the credit union difference.

The key differentiator here is service. Yes, credit unions are not-for-profit. Yes, they are governed by a volunteer board of directors elected from among the membership. These are good things, but nowhere near the reason why 600,000 people jumped ship last year. The fee structure made the jump possible and the terrific service will help retain the new members.

New members also need to know, quickly, that your credit union can provide the same products and services as a bank, including technology. They should also feel special. Don’t neglect the “doughnut and coffee” Friday policy. Get to know your members by name, and use their names when you see them. Make sure the CEO leaves the office from time to time and visits with members. Do the little things, go the extra mile, and they’ll be glad you did.

We’d all like to be known as the best financial services provider in our areas. While the recent “Egg McMuffin” McDonald’s video on YouTube may take a few liberties with just how seriously people equate great things with breakfast food, we should never stop trying to position our credit unions in the same way.

The Do’s & Don’ts of YouTube for Credit Unions

Online video and specifically YouTube are enormously important players in the way social media is reshaping the American consumer economy and marketing mindset. According to a recent article, the average YouTube viewer spends between 15-25 minutes per day on the site. More content is uploaded to YouTube every sixty days than the three major United States television networks produced in their first sixty years of existence. Over 800 million unique users visit YouTube every month.

Credit unions are also entering the YouTube space. Some credit unions upload content and have their own YouTube channel. But are credit unions maximizing the YouTube medium?

“As with any new marketing activity, there’s a right way and a wrong way to do online video and YouTube,” says , James Robert Lay, President of PTP New Media. “While more credit unions than ever now take advantage of this medium, it’s not being used to it full potential. We’re really just scratching the surface.”

What matters more than the quality of the video camera and editing tools, however, is a simple marketing concept that far predates the advent of online video. “Most anybody can point a camera and shoot film,” Lay explains. “Where I see a pitfall is not in the actual process of filming and editing, but in the creative thinking process that goes into any marketing campaign. YouTube use is no different.”

Lay goes on to say that many credit unions have a “shoot first, think about the story later” process when it comes to YouTube. Just as any good marketer wouldn’t print postcards, air radio ads or buy billboard space without a larger plan, similar thought and planning must go into YouTube.

“The story must come first,” Lay says. “Before you shoot any film, ask yourself key questions that go into any marketing or advertising campaign. Questions like What is our message? What are we trying to promote? Who is our target audience? On what should we focus in order to successfully achieve the campaign’s goals? Do we have a strong call to action?”

In a world where viewers watch over three billion videos every day on YouTube, credit unions are wise to jump into the fray and take advantage of this terrific tool. Knowing a few of the ins and out of YouTube use can help make the difference in a successful marketing campaign and help you stretch your marketing dollars to their fullest.

For more information about how credit unions can maximize the YouTube channel, read the January issue of my e-zine. The free e-zine gives more details about “The Do’s and Don’ts of YouTube for Credit Unions” along with a list of best practice advice for credit unions wanting to utilize YouTube better.

Why Marketing to Old People is Important

“Younger, younger, we must get our credit union younger.” That is a mantra many credit unions are chanting these days. While attracting Generation Y members is a critical strategy, credit unions must not forget a core constituency: old people. For the sake of this post, I’m not going to define “old.” I’m guessing some folks will consider anyone over 30 “old” so I’ll leave the defining to you. However Matures are typically between the ages 69 and 86.

Who are you calling old?

First of all be careful how you address old people in your marketing. They don’t want to be called “seniors”—until they go to Denny’s or the movies! More than likely, many of your credit union’s board members are from this generation.

This demographic still has plenty of things that are a fit for credit unions. Their deposits serve as a base for loans to our younger members. They are also planning on transferring a huge amount of wealth to their children and grandchildren. Products like investment services, reverse mortgages, RV loans and vacation loans (to take their grandkids to Disney) are all good options.

Tips to reach Old People

Here are a few suggestions on ways to market to the Mature generation:

1)      Make branch printed material larger—One of the worst parts about getting old is failing eyesight (not that I would know anything about that). Make sure your rate sheets aren’t printed so small that someone can’t read them.

2)      Emphasize savings—Don’t assume you have all your Mature members’ money. One friend recently recounted the story of his older mother letting him know she had $5,000 cash in her freezer for safe protection.

3)      Remember investments—Obviously, they are a good target for estate planning because of the wealth transfer issue. Having a CUSO for investment services can generate additional non-interest revenue for your credit union.

4)      Reward loyalty—This generation tends to be your most loyal members. Relationship building through a high level of personal service is fundamental.

5)      Don’t write off technology—They do indeed have some level of sophistication with technology. Because they have now discovered pictures of their kids and grandkids they are using computers to connect with their family.

6)      Treat them with respect—This is perhaps the most important thing your front line staff can do. Use the words “Yes, sir” and “No, mam.” We tend to de-value old age in our society. Give them the respect they’ve earned.

7)      Ask for family referrals—Be sure you know who their kids and grandkids are. Getting to know the entire family will help when the wealth transfer issue becomes a reality. One credit union actually told a story in their newsletter about one of their Mature members who had over 20 grandchildren: all of whom were members of that credit union.

So yes, your credit union should certainly “go young.” But not at the expense of reaching the old.

Steve Jobs Biography Offers Lessons for Credit Unions

Tons have been written about Steve Jobs, especially since his unfortunate death last year. However, there is nothing more comprehensive on the legendary innovator and marketer than the biography Steve Jobs, written by Walter Isaacson. It’s a must read for every credit union executive.

While reading a biography may sound boring, I can promise you this one on Jobs is anything but boring. In fact, I couldn’t put it down. Most importantly, there are many points in the books that are extremely relevant for credit unions—especially those trying to compete in the commoditized and hyper-competitive financial services arena.

Here are some quotes from the book that have application for credit unions:

• “His argument was that a great engineer would be remembered only if he teamed with a great marketer.” Is marketing viewed as expense or an investment at your credit union? Jobs “got” the importance of marketing, and so should your credit union’s board and management team. Your credit union won’t last long without great marketing (note: not just marketing, great marketing).

 

• “Job’s primary test for recruiting people in the spring of 1981 to be a part of his merry band of pirates was making sure they had a passion for the product.” If your employees aren’t passionate, get rid of them. That may be harsh but it’s true. Your credit union will only succeed if you hire and retain passionate people at every level of the organization. Hire for passion and train the rest.

 

• “On the day he unveiled the Macintosh, a reporter from Popular Science asked Jobs what type of market research he had done. Jobs responded by scoffing, ‘Did Alexander Graham Bell do any market research before he invented the telephone?’” Jobs was notorious for trusting his gut. More than likely, you know your members and market better than anyone. Trust your gut—and don’t get buried in reams of data.

 

• “Jobs held a freewheeling three-hour meeting every Wednesday afternoon with his top agency, marketing and communications people to kick around messaging strategy. ‘There’s no CEO on the planet who deals with marketing the way Steve Jobs does,’ says Clow. ”How involved is marketing in the “C” level suite of conversations at the credit union strategic dinner table? You need to spend hours (yes hours) every week reviewing not just your loan and deposit strategy, but your marketing and messaging strategy.

 

• “One of Job’s great strengths was knowing how to focus. ‘Deciding what not to do is as important as deciding what to do,’ he said. That’s true for companies, and it’s true for products.’” The recent blog post, “What Should Your Credit Union Stop Doing” dives into this point. Too many credit unions are all over the board with their projects and priorities. Maybe it’s time to reduce and not add to your project list.

 

• “The store will become the most powerful physical expression of the brand.” This point goes to the importance of retail branding. How your branches look and feel matter. Your credit union branches are not just where your members conduct their transactions: your branches are part of your brand.

We often think of Steve Jobs as an innovator (and he certainly was). So you might think reading a biography on Jobs would teach credit unions about innovation. While that’s certainly important, you will also learn about marketing, hiring, research, strategy, focus, and branding.

It’s easy to say credit unions should be more like Apple. While there may be some truth in that statement, a deeper dive into Apple’s culture is also enlightening. Reading Steve Jobs is a great step credit union leaders can take in improving our own organizations.

Ditch the Paper: Make A Video Annual Report

Creating, writing and designing an annual report is a yearly rite of passage for most every credit union marketer. We spend long hours developing just the right visual. We make sure all the CEO and Chairman speeches are crafted with care. We double check the financial numbers to ensure they are correct. We often print the report on special paper to make it fancy.

Maybe it’s time we ditch the traditional annual report. What should you do instead? How about turning your annual report into a video this year?

One credit union did just that last year with tremendous success. Bossier Federal Credit Union (Louisiana, $100 million in assets; 20,000 members) created a video they used at last year’s annual meeting.

“The traditional annual reports are extremely expensive and have a shelf life of 30 minutes,” said Shawn Temple, Bossier FCU’s chief operating officer. “A video is more engaging. It is also an entertaining way to share information.”

You click on the image/link below to see Bossier FCU’s two minute and 20 second annual report video:

 

  

Replacing a printed annual report with a video one offers several advantages. You can post the video to YouTube, use it on your website, send it to members via e-mail, incorporate it into your social media efforts and show it to current and potential select employee groups.

“Video offers the ability to tell a story,” adds James Robert Lay, president of PTP New Media. “You can also have fun with video and show your creativity.”

Bossier FCU received a great deal of positive feedback from their membership. “We didn’t have one person ask for a paper version,” Temple said. “Ultimately members just want to know how your credit union is doing. You can answer their questions and do it in an entertaining format.”

Temple’s final suggestion about a video annual report rings true. “Tear down those arbitrary walls,” he says. “Just because you’ve always done it one way doesn’t mean you have to do it the same way.”

So maybe it’s time credit unions stop printing their annual reports the same way and produce a video annual report instead.

How Graphic Design Impacts Credit Unions

As the credit union movement continues to grow and mature, much of how it develops will hinge on its look and feel. Although credit union marketing and communication professionals have always taken a lead role in this effort, the input and value of graphic designers cannot be overlooked. While many credit union marketers are superb organizers, idea-generators and brand cheerleaders, the special creative fire that fuels art often comes from graphic designers.

To get a better feel for graphic design and future credit union marketing efforts, we sat down with Kenny Kent, creative guru and owner of Kent Design. Kent worked for a credit union marketing ad agency from 1988 – 2002 before starting his own business and has served the needs of credit unions for close to 25 years. His answers, thoughts and input offer a unique look at this important element of marketing.

What do you see as key elements of effective credit union graphic design?

Credit unions are poised at a terrific time to make the most of good graphic design, especially with the recent negative media and consumer attention focused on banks. I see credit unions as really moving up the visibility chain in the public eye and looking as professional and on-message as possible is crucial. If there was ever a time when bank customers are apt to make a change and a time for credit unions to put their best collective foot forward, it’s now. The way the public first perceives any company or organizational message is the pivotal moment between gaining or losing interest and trust. Credit unions need brand consistency, brand appeal and brand awareness. Graphic design really leads the charge in that direction.

What must credit union marketing and communication professionals look for in effective graphic design?

The elements at play here are really quite simple. Look for visuals that pop, coupled with an offer that compels action and copy that adds to, not detracts from, all of the above. We still face the challenge of wanting to put too many words in our design. I like to point out the powerful simplicity of Apple “i” products, like the iPod, iPhone and iPad. The design is brilliant in its simplicity. In a crowded electronics store, you’ll automatically gravitate towards an Apple product poster and know what it is selling, without need for loads of attention-draining copy. Less really is more and credit union ad design benefits from this same maxim. Cutting through everybody else’s clutter is the goal here.

What concerns do you have for credit union graphic design moving ahead?

With deference to the points we’ve already discussed, I will point out an additional challenge, one shared by both graphic designers and the credit unions they serve. As artists, graphic designers are susceptible to falling too much in love with their own creations. Yes, we are paid for our talents, abilities and vision, but we also must know when to rein in the urge to “own” our creations. Credit union marketing teams also have a vision for what they want and are usually the best gatekeepers of their particular membership base. The two camps can always work harder towards producing the best of both worlds: effective graphic design that looks great and accomplishes the marketing goal for which it was commissioned.

Do you have any other thoughts on the future of credit union graphic design?

The buzzword here continues to be technology. Everything is tech-driven and graphic design is no exception. While we’re not writing a lot of complex code (we save that for the IT folks) we are seeing more and more demand for design geared from the ground-up for use on websites and smart phones. We’re also seeing a corresponding drop in demand for traditional printed materials. For example, as more focus goes into, say, smart phone apps and website ads, less is left for wall posters and flyers. I think what we’re seeing is the gradual shift to an e-commerce society as reflected by the demand of credit union membership. That credit union marketers are responding to this demand is a good sign for the future health and growth of the credit union movement.

You can reach Kenny at kenny@kentdesigninc.com or (512) 312-4956.