(This story originally ran on the CU Soapbox.)

Paul J Lucas, national marketing and branding consultant and frequent CU Journal contributor, wanted to share some thoughts on brand management for credit unions. Visit Paul's website at pauljlucas.com,email at paul@pauljlucas.com or call (202) 320 5759 to learn more.

Going into 2010, the top brand challenges for credit unions will be:

1. Misunderstanding what a brand is and why it matters. It is important to have a brand strategy that is embraced by the entire organization. If your staff doesn't get it you can't expect your members to embrace your brand.

2. Lack of understanding in the marketplace that credit unions are ideal primary financial services providers - not just a good place to get a vehicle loan. This means that credit unions must explain both the credit union concept and their own specific brand stories.

3. Communicating that shared branching and ATM networks are competitive to the national presence of large banks. This is critical to a credit union's ability to compete against multi-branch banks (and credit unions). Yet most members have no idea what "shared branching" means or how competitive large ATM networks are compared to many large bank systems. Do not assume members know what "shared branching" means, or how to use it.

4. Bad advertising and marketing that obscure the brand and fail to communicate the credit union's benefits can erode brand value.

• Your marketing/messaging must be clear, straightforward and benefits oriented.


• Creative does matter - effective creative gets you noticed and it clearly states the benefits of using your CU.


• All messages must be consistent building blocks for the brand: advertising; signage; brochures; newsletters; statement messages; eLerts - every member touch point.

5. Overemphasis on reaching new members at the expense of building more productive relationships with current members. Build brand loyalty inside-out! Your current members are the best prospects for increasing product and service penetration. That is key to building a successful, stable financial services organization

6. Letting impatience trump consistency. Throwing together ads, products, announcements, etc. without taking time to tie them to your brand strategy is counter-productive.

7. Constantly changing things in search of the "magic bullet." Changing offers, ad mediums, products, etc. in search of the one magic key to prosperity is a death spiral. There are no magic bullets beyond consistency and brand clarity.

8. Thinking business development reps will quickly and easily grow assets. Business development reps are only as good as they are managed and credit unions do not usually have experienced, effective sales managers on staff. Business development reps who are unskilled and untrained can do your Brand more harm than good.

9. Working with a marketing budget that is too small to achieve marketing goals. Some annual marketing budget benchmarks:

• 0.25% of assets at a minimum for small institutions.


• 0.50% for a larger SEG, near community or small market community CUs.


• 0.75 to 1.50% for large/urban community charter CUs.

10. Remembering that credit unions are chartered to lend money! That requires becoming a competitive retail marketer.

Labels: Credit Union News, CU Soapbox, DigitalMailer, Generation-Y Marketing, Marketing, marketing on a budget

Click Here to Read the Full Version of "10 for '10: The Top 10 Branding Challenges Your Credit Union Will Face Next Year"

by Ron Daly

I'm sure football fans have noticed all the pink surrounding their favorite teams, cheerleaders and even stadium equipment the past few weeks. Sports Illustrated even "went pink" in its most recent issue, all to acknowledge the fight against breast cancer. I saw a great program go across the DigitalMailer production line this week and wanted to share it with everyone.

For the month of October, which is Breast Cancer Awareness Month, Old Hickory CU is working hard to increase awareness and contribute to cancer research. Their approach, outlined here in their monthly "Money Memos" newsletter, which by the way is pink this month, is threefold:

1. A team of Old Hickory CU employees will be participating in the Nashville Making Strides Against Breast Cancer event on Saturday, Oct. 24. Their goal is to donate $2500 to the American Cancer Society;
2. Old Hickory CU is selling pink umbrellas for $15, with $7 of that going to the American Cancer Society. These umbrellas also come with a set of coupons for credit union services that benefit members; and
3. All branches are offering information on breast cancer awareness, as well as supplemental cancer insurance policies.

When we inquired about the eLert topic Malinda Warchus, Assistant VP of Marketing commented “It might seem like a strange thing for a financial institution to send out an eLert about, but we are committed to improving the lives of our neighbors and making a positive difference in our communities. The outpouring of response from our members tells us that they like joining our cause.”

Not strange at all...and we agree with the members! In fact, I hear our DMI team is in line for any umbrellas that are left once the members are taken care of.

Most of the time, Credit Unions think they can only use member email addresses for eStatement notifications, newsletters or selling a new product or service. Those same email addresses can be used to communicate the difference between a bank and a credit union, as well as raising awareness among CU members the community outreach credit unions are involved in. Old Hickory CU has done just that by tying into a national promotion and using inexpensive methods of communication (email, electronic alerts, and monthly newsletter) and community outreach to reach members and potential members at a fraction of the cost.

Kudos and this effort speaks to the character of Old Hickory CU employees and management. Keep up the great work!

Labels: Credit Unions, DigitalMailer, e-mail, email marketing, Financial News, Great Ideas from CUs Like Yours, Marketing, Old Hickory Credit Union

Click Here to Read the Full Version of "While some see red, Old Hickory Credit Union is seeing pink."