Nine Morals for Member-Centric Branding

Credit Union Magazine
June 17, 2009 | COMMENTS

"Creating beliefs in the hearts and minds of your customers about you, your company, your values—your brand—is the core element of success. That means keeping the promises you make … and even the ones you imply," says author Scott Deming.

Deming uses children's stories and fables to communicate cutting-edge principles of sales and service. He sums up his lessons through branding morals, by sharing his experiences, and by taking a look at successes and failures of other companies.

Here are nine morals to help your credit union brand live happily ever after:

Moral 1: Advertising, marketing, and branding are not the same animals

The differences may seem subtle, but you must recognize your uniqueness among competitors to be successful, says Deming. Advertising and marketing connect your credit union with its members. Successful branding, on the other hand, creates and supports a powerful perception and image of the credit union based on unique, emotional experiences—so powerful that the perception or image becomes a belief.

Branding is a feeling, says Deming. "You feel trust, loyalty, comfort, love, need, desire, and happiness for brands because of beliefs derived from very precise experiences. Maybe the advertising or marketing efforts of a company got you interested in the product, but they're not the factors that are going to build brand loyalty. That requires interaction with the people and with the brand, and these differences shouldn't be overlooked."

Moral 2: Be careful what you promise. When you don't deliver on brand promises, you fail to create or maintain uniqueness in your brand category. That yields no brand loyalty among members. They're just as likely to select a competitor's product or service over yours. In the reverse scenario, when a credit union overdelivers on its promises, it creates a feeling of belonging, culture, and family.

"It's this delivery that amounts to the ultimate customer experience," says Deming. "In turn, the ultimate customer experience creates just the sort of customers you want: ones who bring you more business." You want them to feel married to your credit union, he explains. "When you marry someone, you expect that person to remain monogamous, and that's the same feeling you want someone to have about your brand."

Moral 3: Separate yourself from the pack. When businesses get mired in sales quotas, short-term goals, statistics, and so forth, management and staff become robotic. Their eyes focus not on how the brand is doing, but on what the numbers tell them.

Instead, focus on exceeding member expectations, suggests Deming. Start by getting rid of impersonal member service techniques, such as e-mail or automated telephone services. Be proactive, he adds. If your members aren't happy, focus on rebuilding relationships.

"You must consider what you can do to differentiate your business from all the others that offer the same services or products," says Deming. "The differentiator must be the level of service, the unique experience you offer each of your customers. You have to engender loyalty in them so they'll go out of their way to shop with you, regardless of how far out of their way they have to go to get to you."

Moral 4: Perspective is everything. To really experience the credit union, step out of your own shoes and walk in the paths of members and employees. Ask "If I were one of the members right now, what would I want?"

Next, gauge staff loyalty. Loyal employees provide the ultimate experience for members, says Deming. Encourage loyal employees who stand behind your company's brand, he suggests.

When you walk in your members' and employees' shoes, he says, "Your perspective widens, and so does your concern about what's important. The benefits you receive from changing your perspective will far exceed those reaped from a narrower vision that includes only the bottom line."

Moral 5: You (and your brand) probably aren't as great as you think they are

The "Lake Wobegon effect" is a phenomenon common among many businesses, says Deming. It's the human tendency to think we're better than we actually are.

When you think your credit union is the best, you don't work as hard to keep making it better, he explains. "Always keep part of your gaze directed outward. And always be ready to re-evaluate your brand. Constantly ask yourself how you can improve on the experience you offer your customers. Finally, focus not only on what's working, but find aspects of your brand that aren't succeeding and do everything you can to improve them."

Moral 6: Understand your credit union's 'reach of influence'. Think about the ripple effect. You throw a rock in the water and ripples radiate out in all directions. Even after the water at the starting point returns to equilibrium, ripples continue. Your actions can create a similar ripple effect with members, explains Deming. Focus on actions that show you acknowledge and understand their needs. This creates a brand with a far-reaching, positive ripple effect. Evangelists will be ready to sing your credit union's praises near and far.

"Be aware the ripple effect works both ways," says Deming. "Just as happy customers sing your praises, unhappy customers will be quick to spread the word about poor service. If you break your brand promise, you'll suffer the effects of negative word-of-mouth, which can be more damaging to a business than a direct, negative experience. Your brand promise is inextricably tied to your reputation, and you want to make a big enough splash that delivering on your promise ripples indefinitely."

Moral 7: Don't pretend to be something you're not. Everyone has a brand identity, but they don't all understand it. However, you can't develop an authentic, sincere brand without this understanding, says Deming. Branding is not a matter of putting on a persona that others will like. It's not playing a role, putting on a mask, or pretending.

You don't want members to feel like they're being "sold" based on a false business persona, he explains. "When you're sincere about trying to understand your customers' needs, desires, and what they'd truly love from you, a genuine connection is made that's the foundation of trust between you and your customers," says Deming, adding that people who trust a business keep coming back.

Moral 8: The easy way isn't always best. Technology has made communication easier. But if you're not careful, too much reliance on technology can erode your brand, says Deming. While texting, e-mailing, and instant messaging are great ways to communicate, they bring reduced personal contact. Essentially, you lose the opportunity to create emotional connections and build your brand, he says.

Technology should help you streamline your operations, create new opportunities, reach a broader customer base, and reinforce your carefully developed brand, he adds. Effective use of technology is achieved, in large part, through mastery of your brand.

"Regardless of whether or not your business is brick and mortar or Web-based, remember to use technology to transcend, not replace, your brand," says Deming. "In the final analysis, don't let technology be the end of your brand. Let it be the beginning of expanding, extending, and sustaining it."

Moral 9: Don't drive members to a flawed service. Appearance without substance—advertising and driving people to your business without a powerful brand identity—leads to failure, says Deming. "Your values and sincerity are your brand, and any marketing or advertising efforts need to be based around that brand identity. Your brand can be created only by you and the relationships you develop."

"All these lessons work together to bring us to one critical conclusion: If you want to be successful, you must build a powerful, emotional brand," he says. "You must stop looking at customers with dollar signs in your eyes and start creating relationships with them. This may seem like an expensive proposition, but it's less expensive in the long run than neglecting relationships."

When members see that you truly value them and care about the service you provide them, they'll be members for life, says Deming, adding, "That's the real secret to long-term success."