Jim Blaine was right: credit union marketing adds no value

I recently saw an article written by Jim Blaine, the CEO of the $28 billion State Employees’ Credit Union, in which he shares his perspective on credit union marketing. It took me a while to form an opinion on his perspective when he noted, “Credit union marketing adds no appreciable value to the movement.”

At first, I wanted to call BS on Jim.

“Of course, marketing adds value,” I thought. “He’s got it all wrong.”

But after reading his article through a second time I believe that Jim is right.

Regardless, his perspective confirms our findings that CEOs don’t trust marketing.

And that is a big problem.

The good news for both CEOs and marketers is this problem can be fixed.

It’s Business (And Marketing) as Usual

Marketers are often viewed as the ones who play with paint and crayons all day. And in the past, this probably was true at many organizations. However, I believe that with proper training and guidance, modern digital-focused marketers can gain credibility with their CEO.

But this will take much more work than what many credit union marketers are doing today as they continue to operate, and market, the status quo. This shortcoming, though, is not entirely a marketer’s fault.

There are a two main reasons I believe credit union marketers are slow to make the evolution to a digital-focused modern marketer.

  1. Marketers fear failure due to past experiences with their CEO.
  2. Marketers are too busy with the daily tasks to learn new digital marketing methods.

These points are confirmed in a study conducted by Adobe. In fact, Adobe found less than half (48%) of marketers, who consider themselves primarily digital marketers, feel highly proficient in digital marketing.

Furthermore, a majority of digital marketers haven’t received any formal training in digital marketing, and 82% reported having to learn on the job. Finally, a strong majority (76%) of marketers think marketing has changed more in the past two years than in the past 50 years.

For credit union marketers to find success, they must be supported by their CEO and encouraged to learn new marketing methods while accepting that failure is part of the learning process.

Marketers Attack

As expected, heated comments from marketers began to come into Jim’s blog post.

He expanded upon his thoughts to those who commented including Rich Jones.

To Rich, Jim replied,

“I’m trying to provoke you and your ‘ilk’ to a greater, more difficult challenge… to explain, market, educate, convince members/public that CUs really are something different!

We’re losing the ‘war’…. we really are… all of us. As you point out, so many members are still ‘going astray’ much to their financial detriment. I’m tired of losing, aren’t you?

Why should we have to defend ourselves against the banks given their recent actions and attitude toward accountability to the American citizenry?

Why aren’t we being carried through the streets on the shoulders of consumers as the white knights, the answer to their financial despair?”

Jim continued sharing his perspective on marketing to an anonymous poster.

“If CU marketing is so wonderful then why are payday lenders growing faster in your market than your CU? Why is the CU marketing message being ignored… or worse not believed?”

While Jim’s article was satirical in nature, I believe the questions he asks are valid. Every marketer should pause and ask themselves the following three questions:

  1. What am I doing to move the needle?
  2. How am I differentiating my credit union from other financial institutions?
  3. What would happen to my credit union if my job did not exist?

The Big Problem: Everyone Tells the Same Story

Financial services are commoditized, and almost every single bank or credit union is telling the same story by promoting the same three things:

  1. We have great rates.
  2. We have amazing service.
  3. And we have an undifferentiated list of product features.

And this is exactly where the opportunity lies for marketers.

This kind of “logical” marketing focuses on a consumer’s left side, or analytical side, of their brain. However, consumers buy with their hearts, using the emotive right side of the brain, and then justify that purchase with their mind, the left side of the brain.

To be clear, in no way am I advocating for marketers to manipulate a consumer and encourage them to make a purchase they really don’t need.

What I am advocating for, however, is for credit unions to stop promoting “great rates and amazing service” like everyone else and start telling stories that sell.

The Solution: Tell Stories That Sell

Marketing drives sales. Sales drive growth. But the way marketing has been implemented by banks and credit unions the past 30 years is no longer applicable.

Marketing is about defining the narrative, and it is time for credit unions to tell a new one. One that puts members and consumers back at the heart of the stories being told.

I do believe there is still hope for credit unions to tell stories that sell.

But they must stop trying to be the hero in the stories they tell and embrace the role of the helpful guide. Because, without a guide, there is no hero, there is no hope, and there is no story.

For example, without Obi-wan, there is no Luke. Without Gandalf, no Frodo. Without your credit union, what hope do consumers, and your members, have for the future? And without marketing, what hope does your credit union, or CEO, have for the future?

jrwlay

James Robert Lay

James Robert Lay

JAMES ROBERT LAY is one of the world’s leading digital marketing authors, speakers, and advisors for financial brands. As the founder and CEO of the Digital Growth Institute, he ... Web: https://www.digitalgrowth.com Details