Living a Brand Starts on the Inside

Sounds deep, right?  Well is it.  It’s not always about your external messages.  In fact, this is the first mistake many organizations make when they rollout a brand (or just try to live an existing brand, for that matter).  Don’t worry credit unions- you’re not the only industry that has this problem.  The first area of focus on living a brand out in an organization is with your employees, not your external messages.

TELL YOUR STORY
Share your brand personality with new employees.  How many people read the credit union’s company handbook?  They are typically long, and not interesting.  Give them something that explains what the credit union is.  Focus it on your brand.  We call this a culture book.  ABNB Federal Credit Union gave one to all employees when they launched their new brand.  It can be used as a rally cry which gives everyone the chance to live the brand promise.

SELL TO YOUR EMPLOYEES
You don’t force feed a new brand, new initiatives or new products to members- you sell it to them.  It shouldn’t be any different with your employees.  Build the excitement; create the buzz.  Get your team behind anything that’s new before you put it out to your members.

MULTIPLE TOUCH POINTS
 How many members does your credit union have?  50,000?  100,000?  200,000 plus?  Remember that every member you have will interact with a front line staff member.  Every time that touch point happens, you have a member directly interacting with your credit unions brand.  Making sure that is a positive interaction is one of the most important actions credit union management can make.  Keeping employees happy at work makes that positive experience come to life.

How hard does this sound?  It shouldn’t sound hard at all.  Credit unions are built for this.  As a not-for-profit financial institution, credit unions pride themselves on giving back to their members.  Your front line staff should be treated no differently.  Give them the empowerment to help make a difference

Higher employee retention among your front line is not only growing future leadership, but it means more employees will walk the talk of the credit union difference.  So give your staff a culture, voice and a story they can stick to- instead of “sticking it to the man.”

Front Line Staff: The Key To Your Treasure Chest

Front line staff are the most important employees when it comes to a brand.  TV spots are great because they reach a lot of people.  Facebook, Twitter and other digital media outlets are fantastic because they allow for one-on-one interaction.  But your teller is the most personal and engaging medium that a member will experience with your credit union.  You brand your marketing tactics with a voice, imagery and a feeling that expresses your brand.  Why would you not do the same with your employees?

Easier said than done, right?  It’s actually pretty easy.  Include them, encourage them and empower them.  If you can accomplish that, you will see a higher return on investment, and your credit union will be one that employees love to work at.

IT'S NOT CALCULUS
It’s simple math: Strong internal culture divided among employees equals a better bottom line.  Whether it’s the teller that smiles and cross-sells, or the business development rep that works non-stop to bring in active SEGs and then keeps the relationships strong through good service and a friendly attitude- You need the workforce that’s happy at their job, and brings your credit union success.   As credit unions continue to be champions for their members, a strong internal culture will help you back up your claims of friendly service and financial responsibility because your employees will be champions for your credit union.

GET THEIR INPUT
Your front line staff knows your members.  They know what members like, and what they complain about.  Research is expensive.  It’s always good to have a research firm come in and interview your members, but it’s not always an option.  Don’t forget that your employees are a research tool.  Don’t just give them a medium to express their thoughts and opinions, but listen to their ideas.  If you like it, then try it- make it known whose idea it was.

Just think about how much your front line staff interacts with your members.  They are the first and last impression that every person walking in and out of your credit union will experience.   A collaborative work place is a happy workplace.  Getting your employees to be proud of their work, and giving them a chance to make real change will empower their motivation to breathe your credit union’s brand.

Do Your Employees Think You're "The Man?"

As a credit union, the answer is probably no.  But if you’re not fostering a strong internal communication platform, you might be distancing a staff that directly affects membership growth and retention.

EMBRACE YOUR INTERNAL CULTURE
Your staff is cross-generational- so what’s one thing that your Boomer and Gen Y employees have in common?  They don’t like “The Man” (good thing they work for a credit union).  But do you really communicate your organization’s brand - let alone your credit union difference to them in a way that compels them to embrace your internal culture, and stay with your organization for the long haul?

WORKFORCE WOES
The Boomers are huge.  They are close to 80 million people strong, making it the largest living generation until Gen Y.  So, the early 1970’s brought a large mass of workers as the Boomers turned 25, and began their careers.  This was a terrible time for internal culture because employees became expendable.    By 1975, unemployment had risen from 3.8 percent to 9 percent, so if you wanted a job, you had to put up with “The Man”- meanwhile employers didn’t work hard to keep employees happy.

ENTER GEN X
And then Generation X entered the workforce.    The problem was Gen X only has 67 million members, an 11 percent decrease from the Boomers.   The tide had turned.  Companies fought for the best employees.  Large corporations like Mazda, Google and Microsoft started building internal cultures that harvested opportunity and happiness.  Can you imagine being able to bring your dog to work in the 70’s?

DEJAVU
So here we are- 2011 and the first of Gen Y is entering the workforce.  What do we know about Gen Y?  It’s huge.  It’s estimated that this generation is made up of 100 million people, and they have a median age of around 15.  Does this sound familiar?  It should.  Add in discos and bell bottom jeans and it’s the 70’s all over again.

PICK O’ THE LITTER
Over the next 10 plus years, credit unions- like everyone else- will be able to pick from a large mass of people to fill positions.   With competition being everywhere, you need every member you can get.    There’s a difference between an employee who comes to work, and an employee who comes ready to work.  Happy, long-term employees gain and keep assets inside the credit union.

Don’t repeat the same mistakes made 40 years ago.  Remember that your employees are your moneymakers.   Gen Y will bring some great talent to the workforce, so embrace them and they will embrace your brand.

Women: Credit Unions’ Most Influential Members

Why is it important to target women? Any woman reading this probably already knows the answer. So maybe this one is a little more for the guys. (Women, feel free to eavesdrop; We know you want to!)

DIAPERS AREN'T THE ONLY THING BEING CHANGED
The roles women play today are much different than what they used to be. We don’t need to tell you that, just look around and you’ll notice that women are slowly making their way to the top and breaking through the glass ceiling. By 2024, women’s salaries are projected to exceed men’s salaries and the consulting firm A.T. Kearney estimates that women determine 80% of consumption, purchase 60% of all cars and own 40% of all stocks. 1

VERITY GETS IT
Credit unions should be paying close attention to these trends; especially considering that women control 80% of the buying power in the U.S. as well as deal with 75% of family finances and control or influence 53% of family investment decisions. Women also handle 89% of checking accounts. 2 We don’t need to spell it out to you why this is important and impactful for your credit union. Just in case though, take a look at Verity Credit Union. They get it. Verity created an entire program just for moms (www.veritymom.com) and came up with the “Challenge Marketing Campaign.” They had 34 applicants, 24 fan pages and 134 blog posts. Smart move since women have the gift of gab and also make great referral sources. (Full disclosure:  Third Degree did not craft this campaign—we just respect it!)

GABBY KNOWS WOMEN
Speaking of the gift of gab, Ft. Worth Community Credit Union just launched their campaign geared towards not only moms but women ages 28-55 (www.getyourworthon.com). This super-savvy campaign features “Gabby”, Ft. Worth’s spokeswoman who has the gift of gab and wants to share her money saving secrets with you. Tara Street, Third Degree’s Creative Director “gabs” about the campaign here.

GIFT OF GAB
Ft. Worth and Verity also noticed that women not only have the gift of gab (and ladies, it is a gift) but that they use the internet as one of their main forms of communication: not only are 56 million women on Facebook but one-third of all women in the U.S. participate in the blogosphere at least once a week.  A recent article in USA today boasts that “Women and young people are the most active users of social media today, and women in their 30s make up more than half of heavy contributors — that is, they engage in six or more social media activities.”   1,3,5

SUPER-SAVERS
Every woman likes to save money but 84% of women feel misunderstood by investment marketers;  so a down-to-earth, friendly, credit union is the perfect, natural fit for women. 4 They price-compare and are coupon-clippers but are often pressed for time so they can rest assured that all of their financial needs will be taken care of from car loans, mortgages and checking accounts all in one stop. Ever wonder why Wal-Mart is so popular? Their main client-base is a mid-aged mother. As a credit union, are you making sure that you get the word out about how woman-friendly you are?

DON'T MISS THIS BUS
Your credit union needs to be in the driver’s seat of the minivans and SUV’s proudly displaying the soccer and hockey stickers on the back window. Jump in, make yourself comfortable, and enjoy the ride!

1. “Marketing to women quick facts”;http://she-conomy.com/report/facts-on-women; February 16,2011.
2. Diversity Best Practice & Business Women's Network: Wow! Quick Facts 2006 & 2007. All About Women Consumers 2007.
3. Borow, Brette.“10 Musts for Marketing to Women on Facebook”;http://mashable.com/2010/01/13/marketing-women-facebook/; February 16,2011.
4. Rodriguez, Marvin. “Is the market of tomorrow a women’s world?”;http://www.suite101.com/content/womens-influence-in-the-marketplace-a239469; February 16,2011.
5. Terbush, Sophie. “Women, young adults are active ‘social animals’”; www.yourlife.usatoday.com; February 20, 2011.

Get Active: Revive your Single-Service Sleepers

When you review your credit union’s unprofitable accounts, how many of them are inactive? Many credit unions find themselves with a segment of members who joined the credit union for a specific purpose (often a loan offer), and remain members with inactive low-balance savings accounts after they have finished using the product that enticed them to join.  These single-service households can become burdensome.  As you look for ways to expand your share of wallet among all members, a special focus on reinvigorating these single-service sleepers may help improve your profitability.

GET OUT YOUR MAGNIFYING GLASS
Examine.  Try to determine why these members are inactive and unprofitable by looking at vulnerability, profitability, and demographic details.  FIS (http://www.fisglobal.com/AboutFIS/index.htm) has tips on using analytics to help increase opportunities to leverage and expand customer relationships to improve your profitability. 1

KNOWLEDGE IS POWER
Educate.  There’s a good chance that when these members joined, they didn’t know a whole lot about your credit union – just that for a particular product, you had the best option at that time.  A targeted marketing effort can help you educate these members about what makes credit unions unique, as well as update them on current rates and offers that are available to them. The more tailored your cross-sell approach (What do they not have that they might need? Can you offer a better-than-market rate on another product?), the more likely you are to improve the relationship.

A LITTLE GOES A LONG WAY
Encourage. Involve your staff in seeking ways to improve relationships with members.  A recent CUNA study shows a more member satisfied means more loyalty and activity—both in using your products and recommending you to others. 2  Each time your employees have an opportunity to interact with a member, it’s an opportunity to build loyalty and prevent members from wandering into that inactive single-service category.  Develop and encourage an internal culture that supports loyalty—inspiring attitudes and behaviors.

ARE YOUR MEMBERS SEATED IN THE EXIT ROW?
Exit.  If you have made an ongoing effort to revitalize a non-performing member with no response, it might be time to consider an exit strategy for the relationship. You may want to consider charging inactivity fees or find other subtle ways of encouraging the member to move on rather than passively draining your resources.
It tends to be more cost effective to retain and develop an existing customer relationship than to acquire a new customer.   A strong service-oriented internal culture and targeted marketing efforts may just be the right prescription for your comatose single-service accounts.


1 Moed, Joyce. “Marketing and Sales Culture Target Inactive Accounts.” CU Times, 12/15/2010.
2 Credit Union Member Satisfaction, Growth, and Loyalty Report, CUNA 2010.

Northwest Georgia: Ringing in the New Year with Results!

With around $55 million in assets and two branch locations, Northwest Georgia Credit Union proves that savvy marketing and results-driven campaigns don’t just belong to the big boys.  In early 2010, Third Degree teamed up with the credit union to work on its brand position. (Check out VP, Creative Director Tara Street’s blog post showing the creative elements.

Northwest Georgia engaged Third Degree to put together an “un-banking” brand story to separate the organization from local banking competitors in Rome, GA. The campaign began running in April with three main goals:

1. Reduce membership attrition;
2. Increase annual loan volume by 10%, and;
3. Increase the amount of member services utilized per household.

RESULTS WITH MEANING
The results? In 2010, Northwest Georgia saw a 1.6% increase in membership, a 56% increase in annual loan volume, and 1.6% increase in member services utilized by household. Mission(s) accomplished!
With the new brand up and running, Northwest Georgia and Third Degree then collaborated on a mid-year auto loan campaign. After great success with high-yield checking in recent years, the credit union needed to increase its lending (like many credit unions around the country).

MORE BANG FOR YOUR BUCK
Starting the third week in July and ending in November, this program saw some big results. Northwest Georgia exceeded its loan goal by a whopping 82%. Plus, the auto loan campaign had a residual effect of drawing attention to the credit union’s overall lending product portfolio which led to a 25% increase.
So, this small credit union is proving that, “If you can’t run with the big (err, I mean small) dogs you better stay on the porch!”

Social Media Matters: Twitter "Virtually" Grounds Qantas

Social media doesn’t matter? It’s too complicated to figure out how to best use? Don’t tell this to the CEO of Qantas Airways, Alan Joyce.  After reports of aircraft parts dropping in Indonesia this past November, the Twitter world became a rumor mill leading to speculation of a Qantas plane crash. News outlets even began to pick it up. It was untrue, uncontrolled and not only impacting the company’s reputation but its financial position.

LESSON LEARNED
According to the article in the Wall Street Journal (December 28, 2010), Joyce noticed that share prices declined over 5% in half an hour (currently, the stock is around $2.30). Apparently investors had seen the tweets and, in a panic, started selling their Qantas stock. After confirming that the plane was safe and on the ground, Qantas quickly issued a media statement and pulled together a press conference with the CEO out in front.  All actions were part of a crisis communications plan, which had not included social media. Since this incident, Joyce has hired an entire team of people just to keep an eye on the social networking side of things. This team has already prevented other rumors from starting and spreading with regular tweets, Facebook updates and conversations with the public and media online.

FACING THE FACTS 
Like many companies (even large ones like Qantas), credit unions and marketing communications firms are still determining how to best strategize and utilize social media, one thing certain is that not participating is not an option. Whether you want to or not, your credit union will be a part of the chatter. The question is, will you be leading, following or scrambling to react to the virtual world?

Critchlow, Andrew and Kelly, Ross. “Qantas Copes With Aftermath of A380 Crisis.” The Wall Street Journal. 29 Dec.2010:B4.