How Credit Unions Can Build a Better Brand By Being “Flawsome”

by Michael Downs, Momentum

Basic human nature dictates that people have a hard time genuinely connecting with or truly trusting other humans who pretend not to have weaknesses, flaws, or mistakes.  This also holds true for the relationships people have with companies and specific brands.

Consumers, no doubt are more demanding than ever, but in reality, they don’t expect brands to be flawless.  As a matter of fact, we tend to embrace brands that have an ability to maintain brilliance in spite of having flaws, and demonstrate a willingness to be open about it.

Consequently, we often have a stronger affinity for brands that express human traits, such as empathy, humility, humor, character and humanity.  In other words, we as consumers know that we’re not perfect, and therefore, we appreciate companies that openly acknowledge their own flaws as part of their pursuit of delivering better products and services.

So, by understanding a few of the factors that drive members toward transparent and  truthful brands, credit unions have an opportunity to connect with prospective members, while also deepening brand loyalty with their existing members, flaws and all.

The new catch phrase for this type of approach is called “flawsome”.  According to trendwatching.com, being flawsome merely means that brands can still be “brilliant despite being flawed.”

The Human Touch

Members’ cynicism at corporate behavior has reached new heights, and credit union brands that can display business in a new, more humanistic light will be welcomed with open arms.  Disgusted with big, arrogant, messy and out–of-touch institutions, fed-up members increasingly expect businesses to be socially, ethically and environmentally responsible.

Members are more and more aware that personality and profit can be compatible, which is evidenced by the success of brands such as Tom’s, Zappos, The Body Shop, Patagonia, and Ben & Jerry’s.  These companies have consistently demonstrated personalities that care about humanity and leverage their business and personal passions as a mechanism for improving the world in which we live.  They have also built their brands around a level of humility that connects with people in a very authentic way.

According to a 2011 Havas Media report, nearly 85% of consumers worldwide expect companies to become actively involved in promoting individual and collective wellbeing.  However, only 28% of people think that companies are actually working hard to solve the big social and environmental challenges.  So, with every business that succeeds while remaining helpful, fun or even somewhat ‘human’, consumers will become increasingly disenchanted when dealing with traditional, boring, impersonal brands.

Truth in Transparency

Along with this desire for brands with character and personality sits a flood of online reviews, remarks, ratings, reports, and so on. And ‘transparency’ will continue to be one of the key ‘big business themes’.

Credit unions conduct business in a world in which everything (attitudes, service, quality, and behavior) is completely accessible online and therefore potentially exposed as ‘flawed’.  So, with members likely to find out everything (including flaws) about your products, services and activities anyway, you have no option but to embrace, if not celebrate them.

It is a fact of life and business that things will go wrong. And, while members have never been able to complain more vocally and quickly, credit unions too can react and respond in real-time. If handled well, even flaws can be transformed into positive attributes, and reputations mended, or even made.

Research by Maritz Research in 2011 showed that 76% of people who complained on Twitter received no response from the brand. But among those who were contacted, 83% liked or loved that the brand responded, and 85% were satisfied with the response.

Here are some tips on how your brand can be flawsome:

  • Be genuine. Any unfeeling, stuck-in-the-past brand who thinks it can fake it will be exposed in today’s transparent marketplace.
  • Build a culture of openness. Ask for direct member feedback through blogs and social media.  Monitor your online discussions and respond where necessary in a timely fashion.  Give personal responses that aren’t canned to your members.
  • Embrace member feedback. And, not just by enabling service reviews, but having the confidence to publish unadulterated feedback, and allow users to easily see the original source.

So, don’t let our nation’s affinity for “Here Comes Honey Boo Boo” and “The Jersey Shore” mislead you.  We have always been smart enough to see through a companies’ facade of perfection.  At the end of the day, credit unions mustn’t forget that we are a culture that is not only willing to accept brands’ flaws, but one that will embrace those flaws when shared in an authentic and transparent way.

Michael Downs

Michael Downs

Michael Downs is the Vice President of Client Solutions at Momentum, a strategic design-build partner that takes a people centric approach to helping credit unions across the nation thrive. Web: www.momentumbuilds.com Details