Members Credit Union Wants to Know … What Are You Saving for?

 

PR Director Matt Davis of Members Credit Union.

With the US economy reeling from the mortgage crisis, and consumers awash in credit card debt, Members Credit Union recently introduced a most timely campaign. What Are You Saving for?, the credit union’s newest account and savings promotion, aims to help Member’s members take a sensible approach to saving and spending.

WAYSF includes an online community of people who set savings goals and get helpful tips from the Members staff. Moreover, other members of the community also are free to offer their own tips and words of encouragement.

The blog community is also backed up by a great product – the WAYSF account. This account pays twice the dividend rate of the Members CU savings product (members have to adopt e-statements to qualify for the dividend). In addition, Members holds a monthly drawing for a savings prize, with the number of chances determined by how much money each accountholder has on deposit in their WAYSF account.

Also, every six months, Members will announce a Biggest Savers Contest winner. Based on the members’ dedication to saving consistently to reach goals and participation in the blog, this prize winner will receive a $2,000 60-month share certificate!

The chance to win prizes is a great element, but the community aspect of WAYSF is another great feature. Even though Members just rolled out this account April 1st, quite a few blog postings have already appeared.

One such post that was especially touching was written by “johnnymac,” who expressed his frustration at not being able to afford a medical scooter for his father-in-law. The community has chimed in to offer words of encouragement to johnnymac, and a few tips. It will be interesting to see how this community comes together to help members in these types of situations. (Isn’t that great, a savings account with a stinkin’ social conscience?!)

Check out the tools and other features of WAYSF – it’s a great campaign I suspect we’ll be hearing a lot more about. Good going Members CU!    

Charting the ROI on Good Vibes (and Ugly Cars) … The I Love My Hoopty Campaign

For those credit unions that have chosen not to participate in Social Media, it seems that there’s a very natural and understandable tension at work: in a world where marketing campaigns are measured in terms of loans made and assets grown (ROI), how can you concretely measure the value of a blog?   

In pondering this question, I called up Marketing Diva Deb McLean of Carolina Postal Credit Union. CPCU of course originated the “I Love My Hoopty” campaign last year.

Deb describes the Hoopty campaign as, “An untraditional marketing campaign with a Social Media component.” It’s untraditional in that it spotlighted a product that most marketers would not conceive of focusing on (unsecured loans made so that postal employees can purchase beat up used cars for their rural letter-carrying routes).

And while the I Love My Hoopty blog has gotten a lot of attention in the blogosphere as well as the CU trade press, the truth is a lot of traditional marketing collateral (posters, mailers, bumper stickers, etc.) keyed the measurable success of the Hoopty campaign. Deb noted that unsecured loans and installment lines of credit increased a robust 325% during the Hoopty campaign last Fall – the ROI was even greater if you factor in cross-selling of other products. 

It could be argued that the blog had little tangible impact on the bottom-line ROI, but that would be selling the Social Media aspect short. In a traditional marketing campaign, something like Hoopty could have come and gone pretty quickly.

But the blog keeps the conversation going. It serves as a 24/7 reminder of a funny campaign that is relevant to the CPCU membership. The credit union has gotten so much positive feedback from members, they’ve begun to incorporate Hoopty into their membership pitch to postal employees. They’re also mulling ways to bring the Hoopty contest back later this year.

The blog also helped the credit union gain a lot of attention outside the membership. Deb attributes much of the CU Trade press attention to the blog. The I Love My Hoopty site also got noticed by a Miami rapper, and got CPCU interviewed by an intrepid reporter from the UK who stumbled across the blog.

So what does this all mean? Deb made three points that may be of use to credit unions contemplating a dip in the Social Media pool …

1. Whatever you come up with has to be relevant to the lives of your members. “Face it, most people go on the Internet to look at funny videos and dirty pictures*,” Deb noted. “If you do a blog about your “free” checking account, or blog on the acute differences between secured & unsecured loans, no one is going to care … or comment.”  (*Ummm, OK Deb.)  🙂  
2. Avoid “cluster–hugging**.” We credit union types tend to be cooperative, supportive types — so it’s sometimes hard to get direct feedback from peers that you can really use in the development of effective campaigns.  In other words, you & your CU Peers are aware of your campaign – but what about your target-market?” **Note: “cluster-hugging” has been copy-righted by Diva Deb – no lifting/ripping/or borrowing without credit (or cash)!
3. Make sure the campaign does what it’s supposed to do.  “If it’s about opening new checking accounts – did that happen?  If it’s about adding new members – did that happen?”  Don’t get so “caught up in your own performance” (as Deb relates that Paula Abdul said in a rare lucid moment) and forget your intent was to reach your target-market and impact the bottom-line.”

 Of course, Hoopty won’t work everywhere and for just any credit union. But if you’re wondering how to leap into the Social Media waters, consider the key lesson of I Love My Hoopty: CPCU combined ugly cars with financial services, and struck a chord with its membership in the process.     

Community Involvement As Brand Building: A Conversation with SECU’s Jim Blaine

One of the things that has always impressed me about State Employees’ Credit Union is that from the standpoint of member service and culture, the credit union acts like a tiny shop. As most people know, SECU is instead one of the largest credit unions in the world, holding more than $15 billion in assets.

This culture of service and absolute dedication to the cooperative philosophy shines through in the credit union, from the membership at the grassroots all the way up the chain through its board and senior management.

Many of the ideas and much of the credit union passion that you might hear from the CEO of a small shop shine through in the few moments I got to spend with SECU CEO Jim Blaine. Jim graciously spent some time with me to reflect on the Herb Wegner Award the SECU Foundation received as the outstanding credit union organization.  

The SECU Foundation has only been around a few short years, but it has already left a tremendous footprint across all 100 counties in NC. The video interview focuses on the Foundation’s scholarship program, which has awarded scholarships to one student in every NC public high school for the past three years or so.

The Foundation has also embarked on some other outstanding projects that are making an impact in NC. Some of these projects are summarized in the video presentation below that we got to see at the Herb Wegner Awards in Washington, DC last week.

The leadership of the credit union views these activities as its advertising campaign. From my vantage point, I’d have to say that it’s clearly working. Every week when the newspaper clippings arrive in the mail, the activities of the credit union and its foundation get consistent mention in papers of all sizes.

The scholarship winners, which are generally pictured with a local SECU representative, get mentioned the most in papers across the State. At the same time, and I don’t have hard stats to back this up — I’d say clearly the newspapers and other media outlets have become much more likely to pick up press releases that come from the credit union over the past couple of years.  

As the notion of a national branding campaign continues to get kicked around, the SECU Foundation has put together an impressive narrative that suggests that collective philanthropy and community building will get the credit union movement a lot more mileage than a national advertising campaign.

What do you think?

Wednesday Morning Update – Our Trek to the Hill!

The 120 representatives of NC credit unions have really enjoyed their stay in Washington thus far – and today, the rubber meets the road! Late this morning, our group will head to the Capitol to meet with Senators Elizabeth Dole and Richard Burr – these meetings will kick off our afternoon of visits with members of Congress from NC.

The group is anxious to meet with our elected officials and share their thoughts about credit union regulatory relief. I think our elected leaders also appreciate it when they get the opportunity to meet with “real folks” from back home as well.

In addition to reg relief, the group will be sharing how NC credit unions are returning value to their members and boosting the NC economy. Included in this will be the stories of a few NC credit unions that made year-end dividends and rebates. Combined, these credit unions put more than $750,000 back into the hands of members – many of whom live in small towns in NC that are struggling economically!

Much more to come on our day in DC on the Hill. In the meantime a few pictures are posted on Flickr. Click here to view them in a slide show. Much more to come!

Live from Washington … It’s G-A-C!

A quick hit on Friday morning to let everyone know that REAL Solutions, a program of the National Credit Union Foundation, will be providing coverage of the 2008 CUNA Governmental Affairs Conference! The site will include audio, video and still pictures of CUNA’s flagship event in Washington, DC!

With all the events going on in DC … including the long-promised hearing on CU regulatory relief Thursday … this page will be a key spot for keeping up with all the happenings! Check them out at http://realsolutions.coop/.

I’ll have my trusty video camera in-hand for the week, and will report back with a few clips of the 120-person strong NC contingent for GAC. Look for these pictures here and on the League web site.

Of Rorschach and “The Video”

I am here to confess my sins when it comes to the masterful CU Difference video that debuted last week courtesy of Larissa Walkiw, who is the Young & Free Alberta spokesperson. The video, which I first saw Thursday on the CU Brand Blog, is making big waves.

But an exchange on the CU Skeptic Blog yesterday has brought me in touch with a real problem with my personal reaction to this video, and my sense is that others might be falling into the same trap when viewing this terrific piece of work.

The problem? Essentially, “The Video” became a Rorschach test for what I think the movement lacks.

In looking at the video, I thought it had great potential as a CU viral campaign. In my fantasy, we’d take out the Common Wealth CU and Y&F references and throw this thing on out our web sites. And boy howdy, the young folks would literally melt down servers and bust down doors to join credit unions in response.

At long last, the average age of members would plummet, and the CU Nip Tuck we’ve all imagined would happen!

There’s just one little problem with my fantasy: this video is a specific marketing message that is intended for a specific audience … and that audience is living in a financial service system that is quite a bit different from the one here in the States. (Thanks to Tim McAlpine, I understand that now.)

Taking that thought just one step further – as a marketing message, there’s no way to know five days after rollout whether this video is effective. Unless I’ve missed something, it remains to be seen whether Common Wealth’s ultimate goal – to put fannies into the Young & Free Checking Account – will actually work out … and whether the video is helpful in achieving that goal.

So let’s take a step back here and take a couple of useful lessons from the video based on what we know:

First of all, Larissa is a very talented young woman, and a gifted communicator. But in our rush to praise her, let’s not deify her. There are other Larissas out there waiting to be discovered. All they need is an opportunity.

And that leads me to my second point: the true genius of the Young & Free Campaign lies in its risk. Think about it: Common Wealth literally handed the keys to their brand over to a 19 year old. How many credit unions CEOs, boards and marketers are willing to take that chance?

And perhaps that’s the real issue, and why so many seem to be Rohrschaching this thing. After all, it would be easy for Larissa & Common Wealth to edit their video to fit our perceived needs, but would doing so make our individual credit unions any more palatable to people 25 and under?

PR Update: Subprime Recedes, Recession Leads as Issue for 2008

The subprime mortgage issue first appeared as a mere blip on the radar screen nearly a year ago, but has reached a crescendo lately as foreclosures rise, markets fall and uncertainty reigns in the minds of many. Taken as a PR “talking point” however, it looks to me like the subprime mortgage storyline is receding.

As you know, two credit unions in NC, State Employees’ CU and Local Government FCU, rolled out specific products in 2007 to help people in risky subprime loans. These credit unions have combined to help hundreds of families refinance out of these loans. In the process, both credit unions garnered a lot of positive earned media coverage for their efforts.

(To be clear, SECU and LGFCU obviously did not roll out these products to get earned media coverage … but in their wisdom, they saw how leveraging the PR process helped them spread the word about their products, and the mortgage products differentiated the credit unions from banks. While talking heads were offering fear, LGFCU and SECU were offering a way out for homeowners.)   

The subprime mortgage issue remains important to individual consumers and credit union members in 2008. A lot of mortgage resets loom across NC and the US in the year to come, which of course means that many people will be at risk of foreclosure. However, a few factors that were not in play in 2007 will provide clutter for credit unions that are designing mortgage products to deal specifically with subprime:

1. Mortgage rates have plummeted in the last couple of months to their lowest point in at least a couple of years. Anyone who can refinance should be able to do so pretty easily, particularly when it comes to conforming loans.
2. Last year’s headlines were all about subprime – which made LGFCU and SECU’s products newsworthy. This year, subprime as a storyline will have to share the stage with the threat of recession, stock market volatility and a raft of economic data. In short, subprime just ain’t sexy any more.
3. The federal government and the Federal Reserve are getting aggressively involved in the ills of the broader economy.

This is not to say that credit unions shouldn’t be actively communicating how they can be a relevant resource for members and consumers in the months to come … especially those who need to refinance their mortgages. However when it comes to leveraging the media, the subprime mortgage issue is literally last year’s news in my opinion.

As a result, credit unions trying to spread the word about how they can help consumers will have to refocus their messages.

Charlotte Metro Credit Union Rolls out Latest TV Ad

The NBA Charlotte Bobcats take center stage in this latest TV ad for Charlotte Metro Credit Union. The ad spotlights the products and services offered by CMCU, and the fact that membership is open to people in the Charlotte area. Check it out!

Summit Credit Union Starts Webinar Program for Members

Some credit unions are investing in their members by offering free financial seminars, which is of course a smart move in a society that lacks many basic budgeting skills. A common problem with these seminars is getting people to show up – people see the value, they just have so many other commitments and time constraints.

Summit Credit Union in Greensboro is trying an interesting way to get around this problem – starting January 17th, they’ll be hosting financial education sessions by Webinar. Summit CEO Sam Whitehurst will present a one-hour session starting at 6:30 pm that will help members understand how to raise their credit scores and lower their costs of borrowing.

Glenn Kirk, who is Summit’s VP of marketing and business development, told me the credit union has been offering financial education seminars for more than a year, but it’s been a struggle to get people to participate. Summit’s SEG-based membership is scattered throughout the Triad and other parts of the State, and getting an audience to come to Summit’s headquarters location on Market Street has been difficult.

The Webinar allows members with a broadband connection to see and receive the presentation, plus ask questions. It’s also easier for the Summit staff – no set-up and clean-up of the meeting room … all they have to do is turn the camera on and off!

A typical in-person presentation would have fewer than five people in attendance, and Kirk said that twelve people registered to participate in the Webinar in the first couple of days after the announcement went out to members. The early success and interest in this first Webinar has convinced Kirk and Whitehurst that they’re on to something, and they are already planning more of these Webinars a little later in the year.

In addition to this high tech approach to reaching members, Summit is also doing SEG visits specifically to offer financial education to members and prospects.

Kudos to Summit for figuring out a much more convenient way of delivering vital information to its members! With the subprime mortgage mess unfolding and many folks struggling with credit card debt, it’s clear that this type of education is needed.

What Credit Unions Can Learn from the “Huckaboom” and “Obam-e-non”

Its always fun when political pundits and their “conventional wisdom” get a swift kick in the pants as they did last week in the Iowa Caucuses. Both Barack Obama and Mike Huckabee defied the odds by winning impressive victories in the first real test of the 2008 presidential election campaign.  

It remains to be seen if either candidate can translate this victory into the nomination in their respective party. But a clear theme emerged in both Obama and Huckabee’s victories, and this theme is instructive for credit unions.

There are many factors that account for their victories, but in my view both candidates struck a hopeful vision of a united America that clearly resonated with Iowa voters. This vision called upon the idea of America as one community, not segments of people to be divided into voting blocs.

It’s that central idea of a united, optimistic America working together to solve problems that clicked with people in Iowa. 

There’s a powerful lesson here for credit unions as well: your membership is a community of people that collectively represents a tremendous human resource. How much of our marketing and communications emphasis is based on how our members are different from one another? Have we looked for opportunities to bring all our members together as a community in an effort to be change agents in the lives of others?  

Some credit unions are tapping into the collective membership to bring about positive change in the communities they serve. Some of these have been chronicled in this space and there are no doubt many others.

Writing a check to support community agencies is good stuff, but some credit unions are missing a powerful opportunity to bring members together by stopping there. Barack Obama and Mike Huckabee reminded us all that people respond to the idea of community, of belonging.

My guess is that a visionary, authentic effort at communicating this same idea to members as part of a community building effort can resonate powerfully (and perhaps generate growth as a side benefit).

What do you think?