Many organizations feel pressure to outshine competitors in every area. The instinct is understandable but misguided. Trying to excel on all fronts spreads resources thin and often fails to deliver results. Instead, an effective strategy is to reach parity on most products and services and then focus on just a few key areas where you can excel.
The power of targeted differentiation: Domino’s example
Domino’s Pizza offers a clear illustration of this approach. A few years ago, Domino’s was known for its underwhelming pizza quality. Customers were blunt in their feedback—one even claimed, “The box tastes better than the pizza.” Instead of attempting to overhaul every aspect of the business, Domino’s listened closely to feedback and zeroed in on three areas that mattered most to customers: crust, sauce, and cheese. These were the key components affecting customer satisfaction.
Domino’s invested in each of these ingredients. They developed a better crust with multiple options, including cheese-filled crusts. They upgraded their sauce, bringing in top chefs to craft a superior recipe after customers complained it tasted like “ketchup with sugar.” Finally, they increased the quality of their cheese. Once these improvements were in place, Domino’s launched a campaign with a bold message: “We’re the same as everyone else in most areas—we have fresh toppings, fast delivery, fair prices—but we’re unbeatable when it comes to crust, sauce, and cheese.”
This clear focus and honest messaging paid off. After the new campaign, Domino’s saw a 14% rise in same-store sales in the first quarter. They didn’t need to excel in every detail; they only needed to be exceptional where it mattered most.
Applying a parity strategy to credit unions
Credit unions can achieve similar success by identifying the areas with the most significant impact on member satisfaction and loyalty. Most members expect consistency in products like savings accounts, loans, and basic digital services. When a credit union delivers these services on par with industry standards, it simplifies the decision-making process for potential members and frees resources to concentrate on areas where they can win.
Choosing where to stand out
Here are some areas where credit unions can create a powerful impact:
- Employee expertise: A well-trained, dedicated team can make all the difference in how members experience your credit union. Investing in knowledgeable employees who prioritize member needs creates a lasting impression that builds trust.
- Personal member relationships: Credit unions have an inherent advantage here. Unlike larger financial institutions, they exist solely to serve members. Developing genuine connections with members and offering support tailored to their financial needs strengthens loyalty.
- Community presence: Community involvement shows members that your credit union cares about more than just financial transactions. Sponsoring local events, volunteering, and investing in the community reinforce your credit union’s mission and build a positive reputation.
- Trusted brand reputation: A credit union’s brand should convey trustworthiness and reliability. Members are more likely to choose a credit union that aligns with their values and demonstrates a commitment to fairness and transparency.
- Data-driven personalization: Leveraging data to offer personalized services can make members feel valued and understood. When a credit union uses data effectively, it can anticipate member needs and deliver timely, relevant solutions.
Why this strategy works
A parity strategy isn’t about settling for mediocrity. Instead, it’s a way to focus your resources on what matters most. As the old saying goes, “If you try to be everything to everybody, you’ll be nothing to anybody.”
Don’t be afraid to admit that you’re the same. Prove it. Show that there is no difference between you and your competitors in many ways. Then, demonstrate how you are dramatically better in a few places your members see as extremely valuable.
