Market Your Cooperative Advantage

July 28, 2005

Marketing Our Cooperative Advantage (MOCA) as a business strategy influences the success of co-ops and credit unions, according to a 2005 study released by the National Cooperative Bank (NCB).

"The report clearly indicates the MOCA approach offers cooperative businesses, including credit unions, a unique and effective market positioning strategy that has a track record of bolstering success," says Charles E. Snyder, NCB president and CEO.

In the fall of 2004, NCB commissioned the Cooperative Development Institute (CDI) and Global Co-operation to explore how cooperatives across the U.S. market their cooperative nature, and the success of this marketing. The study reached 153 cooperatives, and a subset of this selected group was given more in-depth interviews.

The study attempts to answer the question, "Do marketing and membership programs featuring a cooperative advantage drive successful business outcomes?"

Results indicate the strategy helps drive success. Ninety-five percent of the cooperatives or credit unions that actively employ a MOCA strategy report being at or above average in business performance within their industry. Forty-one percent report business performance above industry average, while 59% say their success is based on MOCA.

Key findings from the study include a belief among respondents that MOCA is not just a marketing program, it's a comprehensive business strategy. Participants report:

• MOCA drives business success
• MOCA is the unique selling position that for-profit competitors cannot match
• Management is key to understanding and driving the process
• As co-ops market this advantage, their internal systems become more aligned with it and it becomes more valued

MOCA represents a belief that these businesses have an innate advantage arising from their cooperative nature, purpose, and values. Cooperative values and purpose originate from fundamental human values and therefore have very broad appeal. Ultimately, they offer a competitive advantage.

Recommendations include sharing of MOCA information and best practices across regional and industry borders. Participants believe the MOCA program can be reinforced through better market research and evaluations, as well as increased education among management, human resources, and marketing staff.

A complete copy of the report and findings, as well as other MOCA information, is available online from Cooper ative Life. Cooperatives and credit union leaders are invited to give further feedback on report findings and the future of MOCA research through a continuing online survey.

The National Co operative Bank, Washington, DC, provides comprehensive financial services to cooperatives and other member-owned organizations throughout the U.S.

This article was prepared by the staff at the Point for Credit Union Research and Advice and is published online at http://thepoint.cuna.org/. Reprinted with permission.

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