A Revoltin' Development

by Ron Daly 

We've already established that there's a "debtor's revolt" going on in this country. Our rioters are not people who knowingly drove themselves into hundreds of thousands of dollars in debt, mind you. They're good people who make their payments, don't default and try to get ahead honestly. People that, as we discussed last time with our Suze Orman video and my Chase-chess game, are sick of big banks and lenders trying to rig the game. 

The revolt came to Chicago yesterday as protesters organized by the Service Employees International Union and National Peoples Action marched on the ABA Convention (click here to read the CU Journal story). Even as representatives of the ABA tried to pardon their members, citing that the crisis was not specifically caused by banks but by lending powerhouses like Fannie Mae and Freddie Mac, the crowd gathered outside to register its displeasure. According to the article, the protesters also visited offices of Goldman Sachs and Wells Fargo - two institutions that are not ABA members but did receive bailouts. 

Thrill of the "Chase"

by Ron Daly 

Visit msnbc.com for Breaking News, World News, and News about the Economy

If you're viewing this post through email, visit the online version at CUSoapbox.com for the video. Current version of Flash Player required to view.

Re-read the "Debtor's Revolt" story here.

I want to share an interesting chess game I have going with Chase over a 3.99% cash advance transaction from 2007. I figured I’d take them up on a balance transfer under an agreement that the rate will remain 3.99% for the balance of the transfer unless of course I default somehow. Here is what they're doing to try and get me to default.

• They’ve raised the base rate to 21% on a card I’ve never used for anything else
• Lowered the credit limit to just above the balance in hopes that I might exceed it
• Changed the due dates twice. Fortunately, I always open bills before filing and write the due date on the outside (sorry, old accountant habits never die) 
• Now they have increased the minimum monthly payment from $85 to $420 in one billing cycle (that’s 494% increase) 

While Some See Red, Old Hickory Credit Union is Seeing Pink.

by Ron Daly

I'm sure football fans have noticed all the pink surrounding their favorite teams, cheerleaders and even stadium equipment the past few weeks. Sports Illustrated even "went pink" in its most recent issue, all to acknowledge the fight against breast cancer. I saw a great program go across the DigitalMailer production line this week and wanted to share it with everyone.

For the month of October, which is Breast Cancer Awareness Month, Old Hickory CU is working hard to increase awareness and contribute to cancer research. Their approach, outlined here in their monthly "Money Memos" newsletter, which by the way is pink this month, is threefold:

1. A team of Old Hickory CU employees will be participating in the Nashville Making Strides Against Breast Cancer event on Saturday, Oct. 24. Their goal is to donate $2500 to the American Cancer Society;

2. Old Hickory CU is selling pink umbrellas for $15, with $7 of that going to the American Cancer Society. These umbrellas also come with a set of coupons for credit union services that benefit members; and

3. All branches are offering information on breast cancer awareness, as well as supplemental cancer insurance policies.

Anti-Social Media

by Ron Daly

Back in April of this year, Jimmy [my Creative Media Director] pointed me to this story that unfolded on Twitter. It was the story of "The Credit Union Receptionist", a young lady kept a personal blog and wrote a lot of unsavory things about coworkers and members in one particular blog post. That post was read by several credit union muckity-mucks, who launched into a lengthy analysis of the situation. 

After a long list of thoughts/feelings shared on the subject and a LOT of cross-talk on Twitter, someone called the credit union to speak with the young woman who wrote that blog post and informed her that it was probably a bad call, public-relations-wise, to talk about people's bad breath and call them stupid. She took the blog post down and apologized, and everyone learned a valuable lesson. 

10 for '10: The Top 10 Branding Challenges Your Credit Union Will Face Next Year

Paul J Lucas, national marketing and branding consultant and frequent CU Journal contributor, wanted to share some thoughts on brand management for credit unions. Visit Paul's website at pauljlucas.com,email at paul@pauljlucas.com or call (202) 320 5759 to learn more.

Going into 2010, the top brand challenges for credit unions will be:

1. Misunderstanding what a brand is and why it matters. It is important to have a brand strategy that is embraced by the entire organization. If your staff doesn't get it you can't expect your members to embrace your brand.

2. Lack of understanding in the marketplace that credit unions are ideal primary financial services providers - not just a good place to get a vehicle loan. This means that credit unions must explain both the credit union concept and their own specific brand stories.

3. Communicating that shared branching and ATM networks are competitive to the national presence of large banks. This is critical to a credit union's ability to compete against multi-branch banks (and credit unions). Yet most members have no idea what "shared branching" means or how competitive large ATM networks are compared to many large bank systems. Do not assume members know what "shared branching" means, or how to use it.

4. Bad advertising and marketing that obscure the brand and fail to communicate the credit union's benefits can erode brand value.

• Your marketing/messaging must be clear, straightforward and benefits oriented.
• Creative does matter - effective creative gets you noticed and it clearly states the benefits of using your CU.
• All messages must be consistent building blocks for the brand: advertising; signage; brochures; newsletters; statement messages; eLerts - every member touch point.

5. Overemphasis on reaching new members at the expense of building more productive relationships with current members. Build brand loyalty inside-out! Your current members are the best prospects for increasing product and service penetration. That is key to building a successful, stable financial services organization

6. Letting impatience trump consistency. Throwing together ads, products, announcements, etc. without taking time to tie them to your brand strategy is counter-productive.

7. Constantly changing things in search of the "magic bullet." Changing offers, ad mediums, products, etc. in search of the one magic key to prosperity is a death spiral. There are no magic bullets beyond consistency and brand clarity.

8. Thinking business development reps will quickly and easily grow assets. Business development reps are only as good as they are managed and credit unions do not usually have experienced, effective sales managers on staff. Business development reps who are unskilled and untrained can do your Brand more harm than good.

9. Working with a marketing budget that is too small to achieve marketing goals. Some annual marketing budget benchmarks:

• 0.25% of assets at a minimum for small institutions.
• 0.50% for a larger SEG, near community or small market community CUs.
• 0.75 to 1.50% for large/urban community charter CUs.

10. Remembering that credit unions are chartered to lend money! That requires becoming a competitive retail marketer.