(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

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by Ron Daly

Yes, I know. It's a joke that's getting less funny, because it's slowly becoming reality. People are losing homes, jobs are disappearing, business is bad all around. And we, dear friends, are in an industry that is constantly under the microscope (read about the CU industry's recent scrutiny on our other blog, the CU Soapbox). We're on the tightrope, and we need to stand up straight and tall to get through.

Marketing suffers at a time like this. People and businesses trying to do more with less are often left with nothing at all. And while "no news is good news" applies in some aspects of life, it sure doesn't work for the CU industry. A diminished marketing budget only means you have to be smart about spending.

Multiple studies show that companies that keep their messages and brands in the public's eye during a recession often come through hard times much better than those that don't. One such study, by MarketSense, proved the point with the 1989-91 recession: Brands such as Jif Peanut Butter and Kraft Salad Dressing increased advertising, and saw sales grow 57 percent and 70 percent, respectively. Pizza Hut and Taco Bell stepped up promotion, increasing sales by 61 percent and 40 percent. But McDonald's, which took the opposite approach, had a 28 percent decline in sales over the same period.

Case Study: Innovative Recession e-Marketing

Solidarity Federal Credit Union is taking an innovative approach to recession marketing: YouTube-style videos. The Kokomo, Indiana-based credit union is emailing promotional clips to targeted members, using short videos created in-house. Members tell their own stories about why they like the credit union's services, such as electronic checking and at-home check deposit. And according to Vice President of Marketing Diana Tenbrook, members' recommendations go a long way to boost credibility.

Tenbrook says the credit union began its unique approach to differentiate SOLFCU from its banking competitors. But with tighter budgets in today's down cycle, the credit union has found email can extend its marketing efforts without draining resources.

SOLFCU uses DigitalMailer's email engines to distribute the information. Here's the latest SOLFCU latest video clip, where Jake and Kylie, a newlywed couple, discuss how they had to deal with enormous bank fees with no explanation!

"Emailing these clips has actually resulted in some viral marketing, with members spreading the word after viewing them," Tenbrook said. "One of our members, who has a home-based business, told us people come up to her in the grocery store and say they've seen her in a Solidarity video."

Using DigitalMailer's email marketing service, SOLFCU can ensure that the emailed videos get to the inboxes of members who want to receive them. And with a high open rate of nearly 30 percent, the strategy is clearly working.

Labels: Budget Stretching Ideas, economy, email marketing, Marketing, marketing on a budget, smart marketing, targeted marketing

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