CUs Describe Their Own Brands

thePoint
April 11, 2005

Your credit union's brand acts as a sort of shorthand that members and potential members can use to decide between competing products. In the broadest sense, your brand is a blend of your financial products' public image. The brand concept includes function, target audience, prestige value, price point, and countless other marketing and business elements, according to a new report from CUNA's Center for Research and Advice entitled Exploring Members & the Credit Union Brand.

Credit unions with effective brand identities align all their communications, operations, and systems to their brand mission and values. They work hard to make all their employees effective brand ambassadors. These credit unions say the brand symbolizes all that makes them different. They try to ensure that their individuality is transmitted in all their activities.

CUNA's Center for Research and Advice recently conducted an informal survey of members of the CUNA Marketing and Business Development Council to see how they position their credit unions in the minds of members and potential members, and what they communicate as their credit union's primary competitive advantage. Responses reveal that credit unions are being branded and positioned as:

· Providing world-class, convenient service · Partnering with members in their financial success · Building trust and knowing members' needs · Communicating a sense of family · Offering the best rates and providing the best value · Being an active, involved member of the community

Many marketers differentiate their credit unions based on service. And others use service as the foundation from which to expand into additional differentiators or brands. Here's a sampling of illustrative comments related to branding and positioning from members of the CUNA Marketing and Business Development Council:

· We build our brand around service, and members tell others when they experience excellent service. More than 50% of members who joined our credit union within the past 16 months said they were referred by family or friends.

· Our credit union is in a very competitive market now that Bank of America has acquired Fleet National Bank. We attract new members by promoting our 90-year longevity and community commitment. We tell potential members that we're the obvious choice if they're tired of megabanks constant merging, name changes, and personnel changes.

· We tout our low loan rates, high dividend rates, and low or no fees. We also promote a sense of ‘family' among our staff and members. We have a staff person who knows sign language so we can communicate with hearing-impaired members. Our employees also contribute to a fund that's used to help members who go through difficult times.

· We're starting to see more banks promote their service, too, and they have much larger budgets. If everyone is proclaiming to be the service leader, it will dilute the message. Another option is to promote credit unions' unique co-operative structure to support and differentiate the service message. Messages like ‘you own the credit union,' and ‘every member is treated like the CEO,' resonate with members and potential members.

· For current members, we position the credit union as their personal financial advisor. We offer them friendly staff, responsive management, and a long list of products and services.

· We counsel our members to make sure our services match their needs. We strive to create an atmosphere of trust with our members, to honestly serve them, and to make them feel a part of our extended family.

· We're positioning our credit union as a partner in our members' financial success. We put on educational seminars to help our members make wise financial decisions. We're also working with our SEGs to bring our educational seminars into the workplace.

· The concept of being a ‘community partner' will stand the test of time. Our service will be great, our rates will be competitive, but we also care about our members' financial well being. That's what makes credit unions different.

Exploring Members & the Credit Union Brand can guide your credit union's marketing strategies and help build its brand. This concise, 17-page E-Scan Insights report sells for $50 to Point subscribers and $75 to nonsubscribers.

This article was originally published online by The Point for Credit Union Research ad Advice at http://thepoint.cuna.org and is reprinted with permission.