CU Branding 101: What's the difference and does it matter?

There were many highlights at the FORUM Solution/Trabian Partnership Symposium, but the best part to me was the unveiling of the CU Skeptic. We now all know that the CU Skeptic is Mark McSpadden from The Garland Group and the host of Banktastic TV's the CU Scoop.

Mark did a great job of presenting his case. One of the screens that he employed to prove his point was simply titled "The Difference Between Credit Unions and Banks" which was followed immediately by a blank screen. In Mark's sub-30 Gen Y opinion, there is absolutely nothing different between the two. We can all go on and on about the member ownership, the not-for-profit structure and the community centered focus, but to the Skeptic and in his estimation, to the general public these things either don't matter or are completely invisible.

Mark's blogging as the Skeptic grew out of being tired of the credit union cheerleaders (including yours truly) blogging about how great and different credit unions are.

Does the difference between credit unions and banks even matter?

The problem with this age old comparison is that the differences are subtle and the differences are often different!

Ultimately, each credit union needs to be relevant and desirable to its own members. This point was brought home by William Azaroff presenting his story about Vancity (400,000 members and $14B in assets) and Gene Blishen presenting his story about Mount Lehman Credit Union (2,000 members and $40M in assets).

Other than both being credit unions, these two institutions have absolutely nothing in common. This is a good thing, because both serve a very different group of people and both of these credit unions are very successful.

So why the fixation on a national brand campaign?

A recurring theme at these events and online is the need for a nationwide brand awareness campaign in the US to illustrate the difference between credit unions and banks. In theory, this is a good idea, but the main problem is that large groups of credit unions can never agree on a compelling universal difference.

Since hearing the Skeptic's talk, I have had this mock meeting conversation rattling around in my head.

The scene: the Motel Owners Association National Convention

300 motel stakeholders have congregated to discuss the need for a national branding campaign.

"We need to get the word out that motels are better than hotels. Those hotel guys are eating our lunch."

"Yeah, hotels are all about making the big profits. Motels are an affordable alternative. So first of all, let's decide on what makes us different."

"Doors on the outside?"

"No, we have halls at our motel."

"How about anything under two floors?"

"Nope, we have three floors."

"Kitchenettes?"

"No. Some hotels have kitchenettes. We can't use that."

"What if we go after the business practices of the hoteliers?"

"Not our style. Besides, we'll have the tourism regulators kill our campaign."

Two hours later after serious brainstorming and debate, two final message emerge that all 300 conference delegates can agree on:

"Motels... Our towels are slightly scratchier."

"Motels... It is 68% fewer steps on average from car to pillow."

But perhaps now there is a compelling difference that needs to be told

With the big banks in the US in an endless downward spiral, now would be the time to promote a unifying difference between credit unions and banks. A message of trust would resonate more today than ever before.

Will it happen? Not likely. There are too many cooks and there is fear of casting any doubt towards the stability of the big banks.

Bottom line:

Defining and promoting your credit union's brand is your problem. Do everything you can to stand out against the competitors in your marketplace. Lean on some of the global credit union differences if that makes sense in your situation or define your own difference and stick to it over time.

The CU Skeptic provided all of the Symposium attendees with a splash of cold water. Thanks Mark!

Tim

Guest post: If Currency Marketing was built the Credit Union way.

To contrast the difference between what Tim has done with Currency Marketing and what many credit unions are doing now and have done in the past, let's pretend that Tim followed a typical credit union's strategies in building his company.

In the beginning, Tim magically has just about the biggest field of membership (FOM) in the world. Let's see if we can do this in credit union wording: "Any company that is headquartered in, does business in or would like to do business in the English speaking world." It probably took years of lobbying and political positioning to secure such a broad FOM, but Tim knows people I'm sure.

Naturally, he would start by creating some products to please everyone in that FOM. Basic branding, print campaigns, websites—you know, the basics. All of good quality built to appeal to the masses. Meeting edge needs can come later, when there is more clients, staff and capital.

Next, Tim would probably look to economies of scale to enhance his offerings. He'd push hard to get any company he could to become a client and would bring on any that would sign up. He would offer his products at a cheaper price and complete his projects faster than the competition. And, he'd do it all with a smile.

Tim now has a hugely diverse client base and his resources are probably getting stretched. He can't afford to push the envelope in fear of alienating his largely diverse client base, so his team continues to produce good but middle-of-the-road products. They don't fit anyone's needs perfectly, but they fit many client's needs decently. What they don't have in unique products, his agency will make up for with the best darn service anywhere.

Years pass and Tim gets an offer to be bought out by a larger marketing company. He takes it, re-energized in the thought that a bigger client base will provide more opportunities both for his current clients and other potential clients in the English speaking world. Years pass and the company Tim merged with is in the same position Tim was in just a few years ago. Another merger presents itself. Tim is onboard but somehow feels he is only in store for more of the same.

The cycle continues.

CU Skeptic

About our guest author: The CU Skeptic is a sub-30-year-old male that has spent the last few years working in and around the banking and credit union industry. He has heard the tales of credit union greats and seen what some would call the bottom of the barrel. He's seen the efforts of small town banks and has all of his personal accounts with one of the big banks. His take on banks and credit unions? At their current state, credit unions as a whole are no different than banks to the end user. Each have their share of sellouts and standouts, but in his eyes, that’s the bottom line. You can read his blog here. You can also listen to a podcast interview with the CU Skeptic here.

Editor's note: The CU Skeptic wrote a lovely blog post, How Currency Marketing duped the CU world (and what you need to learn from it) after reading my post, Banks? No thanks. Rather than stew over how he has questioned my motivations or how he has permanently tainted our Google search results, I figured why not have fun with the situation and invite him to be a guest blogger. When in Rome...

Are you an agent of change?

"Former vice president Al Gore will launch a three-year, $300 million campaign Wednesday aimed at mobilizing Americans to push for aggressive reductions in greenhouse gas emissions, a move that ranks as one of the most ambitious and costly public advocacy campaigns in U.S. history.

The Alliance for Climate Protection's "we" campaign will employ online organizing and television advertisements on shows ranging from "American Idol" to "The Daily Show with Jon Stewart." It highlights the extent to which Americans' growing awareness of global warming has yet to translate into national policy changes, Gore said in an hour-long phone interview last week. He said the campaign, which Gore is helping to fund, was undertaken in large part because of his fear that U.S. lawmakers are unwilling to curb the human-generated emissions linked to climate change."*

Agents of change are characterized by individuals or organizations that champion a specific cause. Al Gore's brand is "global climate change." You can't hear the name Al Gore anymore without thinking of global climate change.

Vancity is a corporate example of an agent of change. They have developed a website called www.changeeverything.ca to promote their belief in environmental advocacy. The site has a loyal group of followers who deeply believe people and organizations alike should be leaving a smaller footprint on the earth. But it doesn't end there. Vancity ties in its products to their cause, such as the Enviro VISA and Circadian Mutual Funds. The latter lets you invest in "companies that profit in a sustainable manner."

A credit union that is an agent of change is in it for the long haul, not just a 6-week campaign.

Could your credit union be an agent of change?

Tips

1. Large scale or small, choose a cause your credit union can TRULY champion, from the top to bottom of your organization (members included)

2. Set goals that allow you to measure success

3. Develop a strategy, or to-do list, for achieving those goals

4. Allocate funds that will allow your credit union to successfully implement the strategy

5. Include your members in the cause in a real way, such as joining staff cause-related meetings, sitting on the committee, involvement in events, etc.

6. Communicate your achievements, setback, discoveries, victories to staff, board, members and the community at large

7. Act on feedback and suggestions from members and non-members. If for some reason you can't, publicly acknowledge that and supply a reason.

Nothing inspires an emotional connection like passion. Share your credit union's passion about your cause.

*From "Gore Launches Ambitious Advocacy Campaign on Climate", by Juliet Eilperin, Washington Post Staff Writer, March 31, 2008 page A04 – as read at www.washingtonpost.com

Nala

Mind-blowing account openings

Are you making the most of your brand when a member first joins? We did a simple mystery shop of the big banks to see how they handled account openings.

Here's how the big boys compare:

1) Can anyone walk in and open an account immediately?

• TD: No, needed to make an appointment.
• CIBC: They preferred an appointment, but let me choose the time and were very flexible about finding one that suited my schedule. That's cool!
• RBC: I tried the online/in-branch combo. I filled out an online application, and a day later someone back east called me to make an appointment at the branch one block away from my house.
• Scotiabank: They prefer an appointment, but I could tell they didn't want me to get away. Normally you wait in the line up and the teller makes the appointment.
• BMO: Yes, if a staff member is available. Otherwise appointment.

2) Did the staff member have the power to override things upon request, such as holds on cheques, ATM limits, etc.?

• TD: No, the request goes back east. He was unsure of the wait time, but thought one or two days for approval sounded right.
• CIBC: No, the "system" was in control.
• RBC: Again, it was beyond that staff member's control.
• Scotiabank: The staff member barely had power to use the computer! It was an interesting experience to have the monitor turned to me so I could help her trouble-shoot. However, it was interesting to be able to read all the CRM prompts! Back to the question: Power to override lies with head office.
• BMO: No, the "system" was in control. Yes, echoed verbatim what CIBC told me.

3) Did the bank effectively use that situation to upsell other services?

• TD: No other questions were asked, and it was the start of RRSP time!
• CIBC: Yes, asked about credit card and RRSPs.
• RBC: Yes, very effective. Despite feeling I was "small potatoes", she didn't make assumptions and had a very comfortable way of asking about my other banking needs.
• Scotiabank: No upselling was done, although the experience took 1.5 hours, so she was making an effort to have the remainder of my visit go quickly.
• BMO: Upsold me on a savings account for no additional fee.

4) Did the bank do anything out of the ordinary to make the account opening a memorable experience (i.e. giveaways, or a tour and introduction of branch staff)?

• TD: Gave me a debit card and folder. PIN'd my card at their desk, which was convenient. Pointed me to the teller wicket to make my deposit.
• CIBC: Gave me a debit card and folder. Used their ATM machine to set my PIN. Walked with me and assisted.
• RBC: Gave me a debit card with a horrible sticker and my card number handwritten. RBC is the only bank that still produces personalized debit cards. Every other bank doesn't do this for security reasons. Card is PIN'd right at staff member's desk. Also received a folder.
• Scotiabank: I received 1,000 points (=1 movie pass) with my debit card. However that is standard. Received a folder, but no other effort was made.
• BMO: Gave me a debit card and folder. Used their ATM machine to set my PIN. Walked with me and assisted. Walked me to the teller to make my deposit.

5) General comments about the experience.

• TD: This was a new branch. I felt very much like I was dealing with "the new guy." I wanted to come back later and get the "real" answers.
• CIBC: The rep here was friendly and professional. I felt she established a friendly and respectful bond with me and put me at ease. Despite a rocky start (the new account counter said "please go to the teller" and the teller tried to point me back to the new account counter after my 15-minute line-up wait) they recovered with attentive service. A flyer advertised a job night as "Stuff? Conservative? Boring? Think again!" It was ironic that this branch (fairly recently refurbished) looked stuffy, conservative and boring.
• RBC: The online experience left me feeling not wealthy enough, once I scanned the elite occupation list and answered the several questions that concentrated on whether I would be making deposits in excess of $5,000. I found out during my appointment that these questions are centered around uncovering money laundering. How Hollywood-espionage-esque!
• Scotiabank: Wow, kind of a gong show. I don't mind that I had a newbie opening my account, but when I was waiting in line for 10+ minutes to get my card pinned, because a personal friend was chatting to one of only two tellers... I've got to say that set my temperature on simmer.
• BMO: This was a new branch with shiny, smiley faces. Very cordial. The account opening fellow was pleasant but very sales-y. I wonder if this is a woman-man thing on my part?

Interesting thought: The TD, Scotiabank and BMO all were new branches near my house that opened at least 6-12 months prior to my visit. Yet the staff there were new, freshly trained employees. They seemed less confident and more willing to let the system dictate how they could help me - therefore reinforcing my perception that banks just don't care.

Wouldn't it make sense to staff a new branch with your most experienced, brand-knowledgeable people, since you could make the assumption that a new branch's main strategy would be acquisition?

Thought-starter: Wouldn't it be great if every new member of your credit union got a tour of the branch and an introduction to the staff? Wouldn't it help foster principle #2 of a co-operative if every new member received a little information package about how the credit union system worked, and why it's a cool thing to participate at the AGM? If a person has to pay to be a part of something, make me feel like I belong!

I will be random shopping these banks periodically and sharing my experiences here. If there's something you want to find out about the big bank competition, leave a comment or send me an e-mail, and I'll incorporate it into my next round of visits!

Nala

Am I a man?!?

Let's start with the fact that I AM a woman. But here's what has led me to my marketing gender confusion:

1. I own five lonely pairs of shoes. Four pairs for mostly practical reasons and one pair of runners.
2. I really, truly, deeply don't like the term 'soccer mom.' I don't know why, but I'm sure it can't only be because I detest soccer.
3. I set up my home entertainment system.
4. I know who 'Gravedigger' and the '12th man' are.
5. What is a pumice stone for?!

I don't say this to start an argument about stereotypes, or to take on the many women who proudly wear the 'soccer mom' label. I simply make the point that dividing individuals by age, income, occupation and gender is not the only way to determine who to target with your next campaign. I see plenty of shiny-happy-family faces in ads and posters, so I know this still happens.

If you have a new product that you think women 40+ will love, or teens 17 to 25 will flock to, terrific. Next, talk to those groups and see if they really need or want that product. If so, fantastic!

But you're not done.

Talk to those same groups and find out how they live their lives. This may sounds like an impossibly huge task, but it isn't. You'd be surprised what a simple five-question website poll will uncover. Or what key learning can be had by having your front-line staff ask a couple of questions. I always have time to chat while I'm doing my banking, and if the member services representative asked me to help out with a two-question poll of the day, I'd love to.

An alternate approach to segmentation

An interesting alternative to standard demographics is the Filene Research Institute's Why Choose a Credit Union? An Ethnographic Study of Member Behaviours, published in 2007. It looks at people from a financial needs perspective instead of the traditional age, gender and income categories. It would be great if Filene continued the research, expanding beyond the 40 credit union member sample size. I myself am 'learning and growing.' There is a fee for non-Filene members to purchase this report.

For real simplicity, try googling 'psychographics.' Psychographics is the use of demographics to study and measure attitudes, values, lifestyles and opinions. For example, you can learn the ins and outs of appealing to non-aggressive conformists (sheep).

But the best advice is talk to your members. They're real people with specific wants and needs. They are the best research candidates you could invest in. They'll answer you, I swear on it. Especially if you share with them what a pumice stone is for.

Nala

CU Branding 101: Simplicity, single-mindedness and local relevance

Shifting gears from the January Blogging and Social Media Lovefest™ that our CU Brand Blog turned into, I am back to talking about branding and marketing. That should make more than a few people happy.

British Columbia's Coast Capital Savings has just launched a new coordinated campaign to kick off year three of its Free Chequing, Free Debit and More Account. Coast Capital launched the first free chequing account in Canada in 2005. Interestly, only a couple of Canadian financial institutions have followed suit since.

In two short years, Coast Capital has grown by 44,500 members (this is not a typo). With a spot-on, locally relevant brand position, a game-changing product and an ad agency who pushes them to the edge, Coast Capital has all of its competitors shaking in their boots.

Coast Capital has a simple recipe for success. The smart marketing folks discovered what was missing from the marketplace, filled the hole with a highly relevant and attractive solution and, finally, promoted the solution consistently over time with tremendous creativity and attitude. People love or hate Coast Capital's advertising—which is preciously the point.

Pretty darn impressive to watch from the sidelines. Kudos to all involved.

Tim

CU Branding 101: Could your credit union cause a freakout?

In our CU Branding 101 series, I have expressed my opinion that credit unions are undifferentiated. To add to the confusion, there are actually three levels of undifferentiated consumer-facing credit union brands you as a credit union marketer have to deal with!

1. The category: The credit union movement brand
2. The organization: Your credit union brand
3. The offer: Your product and service brands

Let's look at the impact that each level has on your credit union.

The credit union movement brand

After more than a century there is still a lot of misunderstanding about what a credit union is, what makes a credit union different and why that difference matters.

When we ask the general public to describe what a credit union is, we get responses that range from a shrug to credit unions are like banks, only smaller. A small percentage of folks will indicate one or two of the following: cooperative, member owned, involved in the community, great service, local decision making, friendly people, not-for-profit, too small, employer sponsored, exclusive and less sophisticated than banks.

To those that do understand what a credit union is, the credit union movement brand does have an impact on your credit union brand. The credit union movement brand creates a pre-disposition to be open to or closed to what your credit union has to offer. That is it. Nothing more, nothing less.

Your credit union brand

If most people don't understand what makes a credit union different from a bank, even less people understand what makes your credit union different from another credit union down the street.

In a competitive environment, your credit union not only needs to be perceived as different than the banks, it also has to be different from other credit unions in your marketplace. The little known category differentiators go out the window when folks are asked to identify what the difference is between competing credit unions.

Your product and service brands

And finally, if people don't understand what makes a credit union different from a bank and what makes your credit union different from the credit union down the street, then they really don't understand what makes your credit union's products and services different from everyone else's.

That's because credit union product and services aren't significantly different. This is why the financial services industry has been reduced to a commodity where most decisions are based solely on price.

With so little understanding, at what level should credit unions invest in brand building and marketing?

1. The category. Should we promote the credit union movement brand? No. Let's skip category differentiation. The credit union difference just isn't different enough to throw millions of dollars at. After 100 years, either people get the difference or they don't.
    
   In the US, there is a heated debate going on about whether to mount a national credit union brand awareness campaign. Here is a link to a CUNA Marketing and Business Development white paper on the subject and a great post and comment string on Open Source CU to give you more background.
    
   Judging by provincial and state credit union promotions, credit unions can't decide on one compelling difference to promote consistently. There is no 'Got Milk' campaign waiting to be discovered. And to be frank, promoting nationwide ATM access doesn't exactly excite the masses.
    
   Again, remember that the only thing that branding and marketing at the category level is capable of is create a pre-disposition for against considering a credit union. Almost no sales or membership growth will come out of marketing and branding activity at the category level.
2. The organization. Should you promote your credit union brand? Yes, you should discover and articulate your credit union brand internally and live and breathe your brand externally. Every employee and member needs to know what makes your credit union special.
    
   No, you should not mount a brand awareness campaign to promote your difference. Brand-only advertising for a credit union is a waste of money. Again, almost no sales or membership growth will come out of marketing and branding activity at the organization level.
3. The offer. Should you promote your products and services? Yes, but only after you have defined a unique brand strategy and everyone in your organization understands what makes your credit union different from every other competing bank and credit union in your marketplace.
    
   This is the time to create unique and desirable products and services that support your brand and that fill a hole in your marketplace. Only through a complete market analysis and brand strategy process can real product innovation emerge.
    
   The offer is where the rubber meets the road. In our experience, the greatest benefits come from promoting a highly differentiated product or service. In doing so, you are promoting the offer and your organization—the two brand levels which matter most to your credit union. Sales and membership growth happen when you invest in marketing and branding activity at the offer level.

A real world example to prove my point

When we ask credit union marketers to list brands that matter, Apple is always included in the list. Think about this. Apple does not promote the category or the organization, Apple promotes its offers: the Mac, iPod, iPhone, Apple TV, iTunes, iLife, Mac OSX and Final Cut Pro to name a few. Through product innovation and consumers' experience with Apple's products (the offer), the Apple brand is built and propelled forward. The offer is where the money is made and the brand is built.

Back to the title of the post: Could your credit union cause a freakout?

Below is a video that is part of a new Burger King promotion, "The Whopper Freakout."

1. The category: Fast food
2. The organization: Burger King
3. The offer: The Whopper

Watch this video and then ask yourself, does your credit union have an offer on its menu that members are so passionate about that, if removed, would cause a massive freakout? Does your credit union have the equivalent of a Burger King Whopper?

Boy, that was a long post to prove a simple point. Offer great products and services and the rest will take care of itself.

Tim

CU Branding 101: How does the average credit unions rate against the 22 immutable laws of branding?

In 1998, Al Ries and Laura Ries penned The 22 Immutable Laws of Branding. It is a great follow up to Al Ries and Jack Trout's 1981 book Positioning: The Battle for Your Mind.

The concepts and ideas presented in these two books form the underlying principles practiced by today's leading brand experts.

Some will argue that there are exceptions to these rules and believe that nothing is immutable, meaning 'not subject to or susceptible to change.' However, for the purposes of this blog post, let's believe them at face value and measure the typical credit union brand against 12 of these widely accepted laws. I eliminated 10 of the laws for this discussion to keep this relatively short

I'll use a scale between 1 to 5 for a possible total of 60 points.

1. The Law of Expansion: The power of a brand is inversely proportional to its scope.
   • Most credit unions try to be all things to all people which ultimately undermines the power of their brand.
   • Average credit union's score: 2
2. The Law of Contraction: A brand becomes stronger when you narrow its focus.
   
   • By narrowing the focus, a brand can achieve extraordinary success. However, most credit unions are spreading themselves too thin as they expand their services and field of membership.
   • Average credit union's score: 1
3. The Law of Publicity: The reputation of a brand is achieved with publicity, not advertising.
   
   • A brand must be capable of generating favourable publicity in the media or it won't have a chance of standing out in the marketplace. Most credit unions simply aren't newsworthy.
   • Average credit union's score: 2
     
4. The Law of Advertising: Once born, a brand needs advertising to stay healthy.
   
   • Credit unions are outspent tenfold by the big banks. And to add insult to injury, these big banks are saying the same things: full service, friendly and accessible.
   • Average credit union's score: 2
     
5. The Law of the Word: A brand should strive to own a word in the mind of the consumer.
   
   • If you want to build a brand, you must focus your branding efforts on owning a word in the prospect's mind. A word that nobody else owns. Kleenex owns "tissue," Fedex owns "overnight," Volvo owns "safety." What are most credit unions trying to own? "Banking?"
   • Average credit union's score: 1
6. The Law of Credentials: The crucial ingredient in the success of any brand is its claim to authenticity.
   
   • Coke is the real thing in the minds of many. Finally a category where I won't be hard on you! Credit unions rate highly in trust and authenticity.
   • Average credit union's score: 4
7. The Law of Quality: Quality is important, but brands are not built by quality alone.
   
   • Does a Rolex keep better time than a Timex? Are you sure? The perception of quality, more than quality itself, is what builds a brand. The problem with a homogenous industry like financial services is that every brand's quality is perceived as equal.
   • Average credit union score: 3
8. The Law of Fellowship: In order to build the category, a brand should welcome other brands.
   • Credit unions have taken this to heart! There are certainly enough credit union brands competing against one another. The curious fact remains though: the average consumer has a difficult time differentiating banks from credit unions.
   • Average credit union score: 3
9. The Law of the Generic: One of the fastest routes to failure is giving a brand a generic name.
   
   • The problem with a generic brand name is its inability to differentiate the brand from the competition. Many credit unions are going through mergers and renaming. They are leaving highly positioned, 50-year-old city or employer names. In their place, they are opting for generic or abstract names or acronyms. Will any of these generic brands break into the mind and become a major brand? Unlikely.
   • Average credit union score: 2
10. The Law of Colour: A brand should use a colour that is the opposite of its major competitor.
    
    • This rule is particularly hard to follow in the financial services industry with most credit unions having more than 10 bank, credit union ad alternative institution competitors. We need more colours!
    • Average credit union score: 2
11. The Law of Consistency: A brand is not built overnight.
    
    • Success is measured in decades, not years. This is the law which is violated most frequently. Once a credit union occupies a position in the mind, many credit union marketers thinks of reasons to change. Markets may change, but brands shouldn't.
    • Average credit union score: 2
12. The Law of Singularity: The most important aspect of a brand is its single-mindedness.
    
    • What is a brand? A singular idea or concept that you own inside the mind of the prospect. It's as simple or as difficult as that. With most credit unions offering a myriad of undifferentiated products and services, this law is broken all the time.
    • Average credit union score: 1

By my non-scientific count, the average credit union scores 25 out of 60 (42%). This is an F. I think we have some work to do! If you actually read this far, aren't you glad I only included 12 of the laws?

Tim

CU Branding 101: Your credit union is not differentiated

This is my second CU Branding 101 post. If you didn't read the first, here's a link. Don't worry, this post will wait until you get back!

OK, so you get the gist. My fundamental belief is that credit unions need to be differentiated to succeed long term, yet almost all credit unions are not significantly differentiated. To illustrated my point, let me contrast the financial services industry with the television industry.

Fifty years ago, there were only three channels to choose from.

Occupying a unique position in consumers' minds was easy. As long as you filled the schedule with a variety of programs, you were guaranteed to have an audience and a full roster of advertisers.

Fast-forward to today and there are dozens of stations to choose from. By necessity, new stations are differentiated to attract an audience and advertisers. The difference between every station is obvious.

Most stations have a descriptive name and a defined niche they are seeking to connect with. Just think of The History Channel, Much Music, The Golf Channel, SportsNet, The Shopping Channel and Court TV to name a few.

To contrast, this is how the financial services industry looks from the consumers' point of view. There are dozens of brands that essentially look like the big banks that established the marketplace. Each going after the same target with essentially the same story and offering. The differences are so subtle and are not compelling.

If you don't believe me, ask your spouse, kids or neighbours to describe the difference between 10 financial institutions.

Think about how well positioned TV stations are in comparison. TV stations have the added bonus of being able to promote their offerings on other channels, in TV Guide and in the local daily newspaper. Also, let's not forget that consumers can access every choice from the couch!

Here's the irony. As competition has intensified, credit unions have moved away from the things that naturally made them different. 

• Serving employee groups and small regions to now serving larger geographic regions and broader fields of membership.
• Using city or employer names to now using acronyms and generic aspirational names.

These shifts have been done to appeal to larger groups of people. However, as more credit unions compete against one another and more alternative players enter the scene, all institutions are looking and feeling the same.

To make matters worse, consumer can't easily sample financial products and services.

Owning a differentiated position has become crucial. Your position has to be so differentiated and compelling to even get noticed. And by the way, being community oriented, member owned and providing better service is not a differentiated position.

These principles may seem obvious, yet most credit union leaders are afraid to position their organizations for fear of limiting their credit union's potential.

Tim

CU Branding 101: What do we believe about credit union brands?

Since we call our blog the CU Brand Blog, I feel I should do a few posts on Currency's credit union brand beliefs and branding process. I'll title and tag these posts 'CU Branding 101.'

Before I get into some real meat in future posts, let me communicate 10 of our basic beliefs about branding for credit unions:

1. Successful credit union branding is about revealing and promoting an easily understood, authentic difference over an extended period of time.
2. A successful credit union brand must be fundamentally differentiated from competitive offerings.
3. Your credit union's difference must be extremely compelling to a defined group of people.
4. A credit union's products and services are inherently not different than any of their competitors. Therefore creating a unique brand for a credit union is harder than doing so for almost any other type of organization.
5. Your credit union simply doing something better does not make it different. I recently read a post by Jeff Stephens on his The Story blog that articulates and supports this notion.
6. Expanding your credit union's geographic footprint and broadening its field of membership makes your brand less compelling. It may defy logic, but the bigger your credit union gets the more differentiated it must be.
7. A new name is not a silver bullet for success. There are many reasons to change your credit union's name, but don't be led to believe that a new name will miraculously have new members running through the doors. A new name must be backed by a highly differentiated brand strategy. It can take years for your new name to surpass the brand equity you had in your original name.
8. The built-in credit union difference is no longer readily understood and even when it is understood it is not compelling. Essentially, being local, community minded and member owned are all great, but on their own they no longer compel prospective members to action.
9. Building a differentiated credit union brand requires a special process. Not to knock our competition, but when a generalist marketing and branding agency employs its brand-building process to a credit union it does not come out with a differentiated brand. These processes are meant to extract what makes a brand different, but the problem is all credit unions are basically the same. We believe that a credit union must actually decide on their difference, make fundamental changes to support that decision and grow into their brand over time.
10. Despite the first nine points, we believe building a successful, differentiated credit union brand is not only possible, but can be a lot of fun in the process.

This post sets the stage for upcoming CU Branding 101 posts. My intent is to unseat some long-held beliefs on credit union branding and push credit unions to step up and identify and claim their difference.

Tim