Promoting the Credit Union Brand

Mark Crawford, CUNA Councils
July 17, 2006

Credit union growth has been stagnant for more than a decade. From the early 1990s to the present, credit union market share has stayed steady at 6% of total assets. Banks, on the other hand, are gaining billions in new assets every year.

Many would argue that now, more than ever before, credit unions need to aggressively market the credit union difference—individually and collectively.

Some states, such as Oklahoma, California, and Washington, have already launched successful statewide marketing campaigns.

So the question is: What would a national branding campaign mean, and how would it work?

This was the subject of a lively, hour-long “National Branding Open Forum” that was held during the CMBDC National Conference in Orlando in March. The forum was held in response to an intense discussion about national branding on the CMBDC Listserv just weeks before the conference.

Nearly 50 people from credit unions, leagues, agencies, and CUNA attended the session.

“We had an excellent discussion about what’s being done across the country, the obstacles that need to be overcome, and what would have to occur to get things started on a national level,” says Mike Weber, Council Chair and vice president of marketing for Dupaco Community Credit Union.

Subjects included sources of funding, the type of branding message, how to craft that message, how to use the leagues’ expertise, what media channels to target, and how to drum up support. Everyone agreed that if a national campaign is to be a reality, top-down support is critical to its success.

“It was a great opportunity for a group of credit union professionals to discuss the intricacies of this complex topic and learn about the cooperative marketing campaigns that are already being conducted at the state level, such as those in California, Washington, and Oklahoma,” says Weber. “We knew we couldn’t solve anything that day, but we all came away with a deeper understanding of the topic and a realization of how the credit union movement could work together to possibly make it happen.”

State Campaigns

During the forum, discussion participants from Oklahoma, California, and Washington were able to provide further information on cooperative marketing efforts in these states. While these campaigns were structured differently and communicated unique messages, each yielded success, according to those involved.

Oklahoma

Oklahoma’s campaign was designed to complement existing credit union commercials that were running statewide and to help direct potential new members to credit unions. The message, “It’s time to find out, at creditunionscare.com,” was broadcast in radio, print, television, and billboards. The website has a listing of all credit unions and their branch locations.

“We ran a pre- and post-campaign survey during the initial TV launch and saw a 12% increase among consumer beliefs that credit unions care more than other financial institutions,” indicates Lara Denning, assistant vice president of communications for the Oklahoma Credit Union League.

California/Nevada

This campaign has been running for two years with a budget of approximately $5 million, funded by dues paid through the California/Nevada League of Credit Unions. The league hired a national advertising agency to handle the creative and track the effectiveness of these efforts, which were launched via the Web, radio, and newspapers in 25 markets. The 2005 message was “Credit Unions Make a Difference.” For 2006 the message was modified to “Credit Unions Help the Community.”

“Between October 2005 and May 2006, the number of consumers (both members and nonmembers) that said they have very favorable impressions of credit unions increased from 49% to 51%,” says Anne Legg, vice president of marketing for Cabrillo Credit Union, Vice Chair of the CMBDC, and also a member of the CA/NV League’s ad -hoc public advocacy committee. “Also 13% to 21% of consumers said the commercials swayed them toward credit unions.”

Washington

Washington State Employees Credit Union started its statewide media campaign 4-5 years ago as a way to promote shared branching. It’s annual budget for the campaign is about $500,000. WSECU asked for contributions from credit unions across the state: credit unions with assets of $250 million or more were asked to donate $20,000-$25,000; those with $100 million in assets were asked for $10,000; and those with $50 million in assets or less were asked $5000-$10,000.

“When we first started there was no shared branching in the state,” comments Kevin Foster-Keddie, president of Washington State Employees Credit Union (WSECU). “Now we have 165, which is about one in four—the largest penetration in the country. Transaction volume has increased at least 40% every year. Consumer awareness is very high.”

After seeing this strong response, WSECU set its sights higher with a $70,000 branding television commercial during the Super Bowl. The ad had a humorous angle and was viewed by 83% of Washington’s households; yet the spot did not resonate with viewers because they didn’t see financial institutions as being humorous.

“We learned a lot from this,” says Foster-Keddie. “There was a major disconnect because people didn’t view credit unions as being funny.”

Foster-Keddie’s subsequent research into branding led him to The Hero and the Outlaw: Building Extraordinary Brands through the Power of Archetypes by Margaret Mark and Carol Pearson. Here Foster-Keddie learned about archetype theory and huge success stories like Nike (the hero archetype) and Harley Davidson (the outlaw archetype). To his amazement, no financial institution has ever been successful launching the “caregiver” archetype.

“When they think about the financial world, the top concerns for consumers are ID theft, security breaches, and getting ripped off,” says Foster-Keddie. “We want to explore developing the caregiver archetype, which is really what credit unions are about. It’s a fantastic opportunity to create a real emotion connection with members and nonmembers alike. This could be the approach that gives credit unions a unifying theme on a national level, but that still allows them to customize their branding message at a local level.”

Hurdles for a National Campaign  

Foster-Keddie points out that national branding campaigns for the credit union industry have fallen short before because there were too many players, or the theme was not general enough to apply to every credit union. This underscores the importance, and the difficulty, in developing a message that truly connects with consumers.

National branding success will greatly depend on the message, funding, and credit union participation.

“I’m not sure a national branding campaign will work,” says Rob Kimmett, senior vice president of the Massachusetts Credit Union League. “It will be difficult branding a group of companies, each of which is unique and has gone to great lengths to customize its own brand identity and promises. However, image advertising can be effective, as demonstrated by Oklahoma and California.”

To be effective in every location across the country, the message needs to be broad enough (and simple enough) to apply to every credit union.

“The credit union movement needs to raise its overall awareness to nonmembers, legislators, and legislators’ constituents,” says Legg. “Whatever the final message is, it must convey the credit union difference and how we benefit the communities we serve.”

“There have been attempts before, but unless we get all the credit unions nationwide to come together and support such an endeavor, we won’t have success,” predicts Denning. She adds that a national campaign needs to be complemented by various local activities in and around credit unions—like lobby posters, website messages, and statement stuffers. The more each credit union reinforces a national campaign at the member level, she believes, the more success the campaign will have.

A national campaign would likely need a central headquarters and a state coordinator in every state. But considering how other national campaigns have flickered out because there were too many players and poor communication, image advertising/branding might work best at the state level.

“It would be easier to work with smaller groups, such as state leagues,” says Kimmett. Communication, coordination, fundraising, and directing the campaign would be easier to manage at the state level.

A national campaign would be extraordinarily expensive—perhaps millions from each participating credit union. And there’s always the issue of how nonparticipating credit unions would reap the same benefits without making the financial commitment.

Although many credit unions contributed funds to WSECU’s statewide campaign, some did not and reaped the benefits nonetheless. Most credit unions joined in because of the extra marketing benefits, such as having their names and logos on television ads and websites.

“More and more credit union professionals realize that, for our industry to survive, we need to pool our resources,” says Alan Zetterberg, chief marketing officer for Colorado Springs Credit Union. “But it seems like the credit unions under $100 million are the ones needing some kind of support from the larger credit unions. A majority of smaller credit unions would simply not have the funding for a national campaign.”

And for a more local, non-national credit union, what is the advantage in joining an expensive national campaign, when all its members and potential members are within a single region or state? Why contribute at all when most of that money would go toward building brand recognition elsewhere in the country, where it has no presence? Why not spend that money in its own domain?

Brand vs. Bank

How would a national branding effort overcome the banking industry’s ability to retaliate with a giant countermarketing effort?

“The key is discovering a national brand that helps us make a connection to the average consumer and our membership that is bank free,” emphasizes John MacDonald, assistant vice president of business development and political affairs for Merrimack Valley Federal Credit Union. “We need to differentiate ourselves as an industry and make a personal connection with our current and potential membership base, without getting into the traditional credit union vs. bank argument. The national brand should be about belonging, not comparing. Consistent grass-roots political efforts from credit unions nationwide, and building relationships with our legislators, is a more effective way to battle bankers than having a national brand do it for us.”

“If we aren’t attacking bankers, then I think they will be left with few avenues for a public response without making themselves look bad,” adds Denning.

MacDonald believes the key to a successful national branding effort is to bring all the players with interest into the same room. “We need to walk through the door and strip ourselves of an ego and discuss what a national brand is, the potential of a national brand, and the commitment it will take, both creatively and financially, from credit unions and credit union organizations across the country,” he says.

“National branding is a worthwhile goal and the CMBDC can play a role by pursuing a constructive dialogue on the subject,” says Weber. “We need to explore the financial and logistical challenges. Because the credit union system is splintered in the sense of state leagues, national trade organizations, and differing charters and fields of membership, the task of conducting a national brand effort is a big one. But it’s one that should certainly be explored.”

Moving forward, the CMBDC will continue to explore this topic in several ways, including:

• Developing an area of the Council website that will showcase cooperative marketing efforts currently being conducted by state leagues.
• Commissioning a white paper that will delve deeper into this topic.
• Facilitating further dialogue on this topic at appropriate venues.

“First and foremost, CMBDC exists to deliver maximum value to Council members by providing superior educational and networking opportunities,” concludes Weber. “But as the leading organization for credit union marketing and business development professionals, we also have a duty to utilize our expertise and take an active role in pertinent topics, such as national branding, that could ultimately be of critical importance to the credit union movement.”