Create a sustainable market advantage at your credit union
Identify and focus on developing one area of excellence
Can you strictly define your credit union’s business model and your competitive advantage?
If you say, “We’re a full-service credit union and our competitive advantage is your member service,” then you’re missing the boat.
Being a credit union isn’t a business model, it’s a financial cooperative formed under a certain charter.
Being “full-service” doesn’t really answer anything. Offering great member service with the best price is a worthy goal, but many experts characterize those traits as almost mutually exclusive.
Let’s delineate five business models and competitive advantages:
1. Convenience model (McDonald’s). Convenience is the trump card in banking services. Bank of America and Wells Fargo have inconsistent service and only moderate pricing, but have gigantic market share.continue reading »