A Unified Message for Credit Unions

by: Mike Lawson, Principal, DML Communications & Host, CUbroadcast

Just a thought: What if credit unions could organize themselves into a single unit and commence with a bona fide, unified marketing campaign?

The NCUA kind of tried that a year or so ago, using financial guru Suze Orman as its spokesperson. But the message wasn’t really about credit unions as it was primarily aimed at touting the NCUA. Nothing wrong with that – except consumers can’t really buy anything from or join the NCUA. It was more of a “your money is safe with credit unions because the NCUA is just like FDIC” insurance message.

Again, there’s nothing wrong with that message – if you’re the NCUA. For credit unions, they were the secondary subjects of this campaign. But the campaign itself seemed to work pretty well with Suze’s mug appearing on posters, cards, banners, and even in Times Square along with NCUA’s logo – an excellent strategy using a celebrity. Did it help credit unions, though? Nobody knows for sure.

Fast forward to today: Suze has removed herself from touting credit unions via the NCUA, while launching a pre-paid card for consumers nationwide that will enhance her own personal brand exponentially. Ouch.

Ok, enough of Suze. What really works for credit unions is when banks screw up. Can you say, “Let’s charge our customers $5 a month to use their debit cards, Bank of America?” Hence, a firestorm was born in the form of a viral, social media uprising called Bank Transfer Day. It was the closest thing to a unified branding message the credit union industry has ever experienced. But it wasn’t an organized effort on their part, really. Credit unions essentially fell bass-akwards into this movement and thoroughly benefited from the banker backlash – no matter what the new member numbers were. Hey, we’ll take it. As a result, credit unions received a heaps of “free” mainstream media exposure the likes it has never seen before.

CUNA President/CEO Bill Cheney even backed up this claim at the recent 2012 GAC. Cheney also had BTD Founder Kristin Christian accompany him on stage as the industry’s “secret weapon” in helping credit unions to continue gaining much-needed media attention. He added that thanks to Christian’s social media efforts and renewed consumer interest, the industry is well positioned financially to gain market share. That’s a positive message the industry can certainly build on, but it also needs a cohesive marketing plan to execute on this opportunity.

Fortunately, since Bank Transfer Day, credit unions have seen a consistent stream of new members (272,000 in January 2012, according to CUNA Mutual Group) – although, nothing like the massive surge in Q4 2011. That was quite the anomaly, which would be nice to see again and again every Q4. This continued flow in to 2012 has been great news for the industry, as 2011 was obviously a record year in terms of new membership gains (1.2 million new members, according to CUNA Mutual Group). But will 2012 match or even come close to 2011? Without a sustaining, collective message and banks not stumbling again, probably not.

There are noble efforts attempting to regain BTD’s momentum, such as: DitchYourBank.com (BayPort CU), aSmarterChoice.org (CUSolutionsGroup.com), “Every Day Is Bank Transfer Day” (South Carolina FCU, now CUNA), MyCreditUnion.gov (NCUA), and a few others. As fine as these efforts are, they are efforts – not “an effort.” Splintered messages have many echoes, which create confusion. One focused message has a single echo for extreme clarity.

Did the different milk processors try to upstart the California Milk Processor Board’s “Got Milk” campaign? No, they came together promote their dairy product with unprecedented success. (90% awareness in the U.S.)

Did the different beef producers try to upstart the National Livestock and Meat Board’s “Beef. It’s What’s For Dinner” campaign? No, they, too, collectively promoted their industry through this popular campaign. (88% awareness in the U.S.)

But let’s step away from food and get back to credit unions, more appropriately. Let’s venture across the Atlantic to Poland, site of WOCCU’s 2012 World Credit Union Conference in Gdansk. The Polish credit union movement or brand, known as SKOK, is responsible for taking Poland’s social-changing Solidarity movement to escape communism and adapting it to the credit union industry. Starting its collective efforts in 1990, SKOK’s marketing parlayed a 75%-80% public recognition within its first 10 years. As a result, Poland’s credit union movement has since grown into one of the most successful in the world: 59 credit unions supporting 1,856 branches and serving more than 2.2 million members nationwide.

Here’s how the unified effort works: Polish credit unions contract with Media SKOK for marketing services, and all share the same style of graphics and logo for a cohesive look. Credit unions use press materials, buy TV and radio ads, and use public relations in their efforts. Media SKOK has an annual budget of 20 million PLN (about US$6.5 million), a fund into which all Polish credit unions contribute and the result from which all credit unions benefit.

So back to the original question: What if U.S. credit unions could organize themselves into a single unit and commence with a bona fide, unified marketing campaign – much like Poland’s SKOK? Ok, they are on a considerably smaller scale than the U.S., but much can be learned about how SKOK has benefited Polish credit unions. Perhaps some of the strategies can be adapted to a singular marketing effort for U.S. credit unions to enhance consumer visibility.

The many collaborative efforts by today’s credit unions and credit union associations are truly noble, but the industry as a whole needs to decide on one and go with it. Again, a fragmented approach, no matter how well performed, will not work as well as a singular collaborative effort with a single message for a well-honed and easily recognizable approach.

Perhaps credit unions should look for fresh ideas in new places. Perhaps they should chat with the California Milk Processor Board, National Livestock and Meat Board, and SKOK to see how they achieved their collective successes. Am I too naïve in thinking it can’t hurt? Just a thought.

Mike Lawson is the principal of the marketing firm, DML Communications, and host of the credit union industry’s only online video talk show, CUbroadcast; has more than 20 years of journalism, public relations, and marketing experience. Lawson leverages this three-tiered expertise to help credit union-related individuals and organizations increase their exposure. Lawson has an extensive background within the financial services industry stemming back to the mid-‘90s working for Symitar, establishing DML Communications in 2002, and starting CUbroadcast in 2010. He speaks on journalism, PR, marketing, and social media topics to credit union industry organizations nationwide. www.dmlcommunications.com  www.CUbroadcast.com.