Aug. 10, 2009 at 11:00am

Invest in your brand: It's now or never

Posted by Kurt Jacobson in Strategic Communications
Comments (1)

Did you participate in the Q1 2009 Financial Services Survey webinar sponsored by Interbrand and Thomson Reuters? It should give credit unions the steel spines they need to invest in their brands: it’s now or never. Credit unions need to take advantage of the fact that confidence in financial institutions is declining and make an impression about the credit union difference.

Interbrand says that the importance of financial service brands in the customers’ decision-making process more than doubled from 26 percent in 2007 to 60 percent in 2009. This is an unprecedented leap, according to Interbrand.

Just a year ago the public had the most confidence in larger financial institutions. Today, 53 percent of consumers don’t trust their consumer banking providers. Mergers have made consumers 34 percent less confident. They've lost so much faith that one fifth of them want to switch financial institutions.

There is $618 billion in conusmer-financial deposits. Of these deposits, 25 percent are at risk of moving and 41 percent are likely to be moved to regional and local banks. The study doesn’t specifically mention credit unions, but let’s assume that $253 billion is fair game for credit unions.

Trust and confidence as a brand driver zoomed from #4 to #2 (after #1 convenience and location.) It leapfrogged the former #2 rates and fees, and #3 service. Have the tides turned toward credit unions or what?

Why credit unions can get more than their share:

• People are becoming more responsible. Five million more Americans voted in the 2008 election, teens are demonstrating more responsibility and discipline with their money, and 1,000 MBA graduates have taken an oath to serve the greater good. Hmmm. Sounds like potential credit union members, doesn’t it?
• Social media is changing how people are driving discussion, as we have seen with Seattle Metropolitan Credit Union and other early adopters.
• Consumers value transparency. Member-owned credit unions excel here. Eighty percent of them want better communication about that transparency, financial strength and frequent positive news. Isn’t that a credit union brand?
• They want improved, more personable customer service. This screams credit union brand.
• Consumers want their financial institutions to be thrifty, eliminate wasteful advertising, sponsorships and excessive executive compensation. With a few exceptions that fits nicely with most credit unions.
• Consumers expect empathy. “They should be the refuge in the storm and understand that these are lives they are impacting.” “Tell me how they are going to protect my money.” “They should be human in the way they interact with customers. This is not the time to be impersonal and robotic.” “Just build a relationship that is more than company-to-customer.”

The phrase, “damned if you do, damned if you don’t,” comes to mind. With this once-in-a-career opportunity for credit unions, the scale is heavily weighted toward, “damned if you don’t” invest in your brand.

Comments (1)

Couldn't agree more. Just wanted to share a CU social media branding campaign for a youth checking account - very innovative and timely. The official site is www.U224U.com. It was recently featured on FinancialBrands.com - http://thefinancialbrand.com/2009/08/24/gte-federal-credit-union-u22/ and I think a definitive step in the right direction!
1 | Left by Jennifer | Sep. 18, 2009 at 11:13am