Establish ‘Sticky Brand’ to Create Deeper Emotional Bond With Members, Online Discovery Audience Told
MADISON, Wis. – Establishing a credible brand for your credit union can create an emotional bond with your members that will set you apart from competitors in an increasing complex, fractured and commoditized financial services industry, a CUNA Mutual Group brand director told an Online Discovery audience Tuesday.
Alan Bergstrom, director, Brand and Creative Services, said there is great confusion and misunderstanding among brand owners and managers as to what constitutes a good brand.
“A large percentage think it’s just a logo and a name, but a brand is so much more than that, and many don’t understand the full potential brands have to create affinities and cement lifelong relationships with customers,” Bergstrom said.
Brands create emotional connections and reduce the likelihood loyal customers will compare and evaluate competitive products. They also generate equity and value which command higher prices and margins. “Very simply, a brand is about making a promise and keeping that promise day-in and day-out.”
Successful brands are authentic, stand apart from others and deliver a deliberate and consistent promise. Bergstrom cited Coca-Cola, Disney, Southwest Airlines and Harley-Davidson as companies that have been able to create “sticky” long-term brands. “The relationship customers have with Harley-Davidson is a great example. People have such a deep emotional connection with that brand that some not only buy their motorcycles, they have the company’s logo tattooed on their bodies.”
Most purchasing decisions are made subconsciously, which is why many people have trouble articulating their buying behavior. “We can rationalize why we bought a Ford truck, for instance, by citing all the bells and whistles it has, but that buying decision may be due more to subconscious feelings and the strong relationship we have about the Ford brand.
He likened a brand to an iceberg. “At the surface you may only see the tip (name and logo), but it’s the hidden part of that brand that is the most meaningful and drives decision making and subconscious buying behavior.”
It is with those successful sticky brand traits in mind that CUNA Mutual Group earlier this year launched TruStage, the company’s new consumer-facing insurance and investment brand for credit union members, he said.
Bergstrom advised attendees to develop a more meaningful relationship with members by creating a brand positioning statement that is authentic and stands apart from the competition. “Identify the strongest connections between your credit union and its members. Your brand story will determine what your credit union offers that is relevant and motivating in comparison to your competitors’ offerings.”
But Bergstrom cautioned that people are more skeptical and jaded around advertising in today’s commoditized world and are more likely to switch products if a brand doesn’t deliver as promised.
“It’s a shift from even just 10 years ago. You must deliver your promise every day across everything you do – deliberately and consistently at every member touch point.”
Online Discovery is CUNA Mutual Group’s Web-based equivalent of a face-to-face conference without the associated expenses or time away from the office. The free, online event attracted a national and international audience of more than 1800 credit union and league staff. The conference aims to help credit unions solve problems, face challenges, and address opportunities all from the convenience of their computer.
CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual Group’s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company’s website at www.cunamutual.com.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company. Property and casualty insurance products are issued by CUMIS Insurance Society, Inc. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Corporate headquarters are located in Madison, Wisconsin.