Short, Sweet, To-The-Point: The Twitterfication of American Business

by Ron Daly 

[This post originally ran on the DigitalMailer blog] 

Just read an article from CUNA Marketing and Business Development Council, “Reach Members in 140 Characters”. They have a lot of great examples of small businesses and community businesses using Twitter to draw interest and save on marketing. They address a lot of what new users wonder about Twitter, specifically:

• Listen to the “static” and the negative/critical talk, because you can. Nobody’s stopping you from finding out what Twitter users think.
• Spice it up by making your messages sharp and memorable – don’t just “robo-tweet”.
• Use your Twitter stream as a focus group/Q and A channel for curious parties.
• Start small and stick with it!

Many of the folks I talk to in the credit union industry wonder how you manage to talk to anyone about anything in 140 character spurts. According to a recent article from LifeHacker, phrasing the first sentence in an email can increase the chances that the email gets read. We all know that a solid subject line gets a reader’s attention, but what about the preview line? For example, you get an email:

Re: Business Collaboration Opportunity

Hi, John – I got your email recently and I’m curious about a possible collaboration between our business and your busi…

The subject line lets you know that A) The person writing is replying to your email and B) they want to talk business collaboration with you. It’s simple and direct. But then there’s your preview line that gets cut off without saying anything else to compel your reader. Want to make it pop?

Re: Business Collaboration Opportunity

We would love to discuss a collaboration with you. Please call me today.

Hammer down a few lines with a hard return or two with extra details and let that first sentence say everything that needs saying. With practice, it can turn your business communication on its ear and make it stand out to your readers.

Start making it short, start making it sweet.

Pay-for-Referral: Putting Your Money Where Your Word-of-Mouth Is

by Ron Daly 

I was over at CU Water Cooler's website, looking at the links of the day for July 6. Quick note to other CU pros: why aren't you over there reading these great stories and links? Get with it. 

One that jumped out at me was the story from MoveYourMoney.org about NetPromoter Scores for CUs, Big Banks, Community Banks and Online banks. I think the title/intended message is a little misleading (35% say they'd leave their banks "if it were easier"...switch kit vendors, take note!). But there IS something to talk about in this article - that awesome NPS for credit unions! 64% said they would refer a friend or family member to their credit union.

We know that the big reason people don't switch from a big bank to a CU or community bank is because they're under the impression that a switch is inconvenient or even difficult. We know that more than half of CU members would encourage friends to switch. What's the missing piece of this puzzle? 

I say incentives. We work with credit unions all the time that offer "$10 for every family member referred" and similar promotions, but is there any way to spice up the offer a little? What about a MAJOR giveaway for most friends-turned-members? 

I ask because I recently watched this interesting (if a little daunting) video about game design in real life. Apparently, the concept of "experience points" is enticing to people. "Leveling up" turns a promotion for "bring in the most members" from a contest into a game. Everyone talks about their being no practical use for social media in finance, let's find a way to make it work. 

A contest idea for everyone:

Give current members points for every new referral, and set up social media "leader boards" that shout out the results day-to-day for each of the promoters. You don't have to make it video game themed, per se, but you should make your grand prize (for your first person to ~10,000 points or whatever) worth the time it takes to send out the information. 

An idea just for promoters:

If 64% of your member base is willing to tell non-members how much they love you, why not pay them for their time? If you have a smart survey program, you can sort out who's a promoter and who's a detractor at your CU - so, why not give only those promoters a special "put up or shut up" offer that rewards their referrals? Maybe it's the above contest and you give some bonus points to those members. You have so much data available to you, if you're willing to work for it and work with it. 

Some possible drawbacks:

Is there a sticking point when it comes to ages? The older you are, the harder it is to convince you to move your money. I'm basing that on no other research than my own opinion, because I've had the same accounts at the same credit union for thirty-seven years. I'd have to be really peeved to move my checking. It affects direct deposits, ACH, bill pay - yes, you can go change all that if you've only had a banking relationship for a few months to a few years, but nearly four decades? I'm one of those people that actually cares about my credit union. You couldn't drag me away, no matter the prize. 

So, where's the "fix"? How do you truly reward members for bringing in profitable new members? How do you REALLY sweeten the deal for those people who have had a relationship with their prior bank for ages? 

Your thoughts and comments are always welcome. 

More Ads Coming Out of More Credit Unions - Will It Mean Business or Backlash?

by Ron Daly 

The New York Times did a run-down of credit union ads and the new face of credit union marketing Friday of last week.  The article (in my opinion) goes back and forth between "about time" and "really?" in terms of tone. There are some praise-worthy notes and some jabs that feel a little more like condescension than reporting. But maybe that's just me. 

This was accompanied by a "Bucks" blog post with videos and PDF versions of "anti-bank" campaigns from different CUs around the country. 

I really liked the above ad from America's First FCU. It's got an "anti-bank" element to it, but it ends on a high-note and isn't vitriolic. One aspect of many of the ads featured are actors pretending to be bankers. Really? You really can't come up with one single real-life example of "bankers behaving badly"? Watch the video below:

Visit msnbc.com for breaking news, world news, and news about the economy

Remind me: When's the last time a group of credit union employees tore up the highway in a Lambo? 

There are folks who are concerned all this "bank bashing" is counter-productive. One such person is Jason Sherrill, who wonders if this method of advertising has lead to more people being against financial institutions altogether...and to consequences such as the Durbin amendment. 

I want you to tell me what to think about all this. Are these anti-banking campaigns going to have a negative effect on membership and on our credibility as an industry? 

I set up a simple survey via our online survey tool that will collect your data and I'll print the results when I have an "n group" of 50 voters. 

Talk to me, credit unions. What say you?

Go to http://tinyurl.com/soapsurvey1 and tell us what you think.

[Thanks again to friend-of-the-blog Jeffry Pilcher and The Financial Brand for bringing these stories to our attention.]

Waiting It Out, or Just Not Getting On Board?

by Ron Daly

There's an old joke about a guy who lives at the foot of a volcano. The volcano erupts, spilling lava toward his home and his village. His neighbors hop in their car and say "Our car is fast, we can get away in time. Come with us." 

"No," says the man, "God will come for me and save me from the lava."

Later on, the lava has reached his porch and burned off the front steps and the siding. The man climbs to the second floor of his house and a military tank full of survivors rolls by and says "Sir, jump onto the tank. We can't get burned and we'll keep you safe."

"No," says the man, "God will come for me and save me from the lava."

The lava gets deeper, and the house starts to dissolve. The man must climb up to his roof. A helicopter drops him a rope ladder, saying "Climb up! Climb up!"

"No," says the man, "God will come for me and save me from the lava."

The man gets swallowed by the lava, and is reduced to ash.

He gets to Heaven and talks to God. "I thought you'd save me!" the man said to the Almighty.

God looked confused. "I sent a car, a tank, and then a helicopter - what more do you WANT from me?!?"

Which reminds me - Reg E is still an issue. 

Get with the program! 

Reg E is an issue that threatens everyone in the financial services industry - it's going to affect income and capital, it's going to affect member relationships, and it's going to affect the bottom line. Credit unions across the country are scrambling to try and find a way to get folks "opted in" before the deadline on August 15 (yes, there's a July 1 deadline on new members, but August 15 affects everyone). There's a lot of worry, as some credit unions/banks just can't do without the fee income. And when the next step is a choice that hinges on the members and customers, the results could be a blessing or a curse. 

Blessing: the income still exists, members just have to opt-in to overdraft protection (or courtesy pay, whichever you prefer). Which means they'll get their way at POS and pay for it later, and the CU can collect on the error.

Curse: everyone is automatically opted out after August, and that's going to mean a big hit on income. Whether they come back to overdraft protection or not is at their discretion. 

Everyone knows that Bank of America announced they were doing away with overdraft fees and came off looking like a good guy as a result. But they're still offering overdraft protection, they're just making it so that it takes the difference out of your savings or credit account and charging a $10 fee for it, according to this NYTimes.com article. When every headline related to that story says "Bank of America does away with overdraft fees" and you're asking people to CHOOSE to be assessed those fees, how do you win? 

What's worse, according to this CU Journal article, is that members are planning to throw out their opt-in forms when they get them, and somewhat more disturbingly: 

The findings should be noted by credit unions and banks, said [Brian] Beach, [CEO of ACTON Marketing], because those customers will not have overdraft protection when they overdraft, will start to have their retail purchases denied and most likely will move their accounts elsewhere. “The psychology of overdraft users is such that they are extremely averse to having their debit card transactions denied at retail,” said Beach. “If they begin to be denied, they will not just re-opt-in with their current bank or credit union. Most likely they will cut and run.”

So, here's the question: how obvious is your car, your tank, your helicopter? Will a person who is at risk to use this service you've provided to them for years know what happened when their transaction is declined? Or are they just going to blame you and leave for a bank? In a new, debt-conscious America, will people want the chance to go over the limit at all? 

The lava's on its way. Get as many folks on board as you can. And if they get "burned", remind them - they had (and still have) a chance.

Your feedback is always welcome. 

EDITOR'S NOTE: 

 Full disclosure time. DigitalMailer is offering a Reg E Opt-In package that uses email and secure online forms/databases to record member opt-ins and encourage more sign-ups. 

Email us at info@digitalmailer.com, let us do a walk-through of the system for you, and if you tell us you're a Soapbox reader, we'll give you a discount on the system. 

This is your call to action - get started now. 

Tired of the Bank? CBS Says "Dump That Sucker"

by Ron Daly

We've been talking about the "Move Your Money" movement for a while now. CBS's EconWatch published a story earlier this week titled "Hate Your Bank? Dump That Sucker For a Credit Union!" It came with the video below and spelled out the differences between banks and CUs. [Note -- email readers, please click over to the website to watch the video.]

We've had quite a few of these in 2010. Do you find your credit union gets more memberships/inquiries because of them? What do you wish these videos would say? Are videos like these something you share with members via email or your website, like TDECU does on their home page? 

Tell us all about it in the comment section. 

Bank Customers Are Mad As Hell, But What Else Is There?

by Ron Daly 

An article caught my eye on Monday about rallies against banks in major cities around the country. Citizens angry at big banks (with a particular focus on Goldman Sachs, still the whipping boy for public ire) mounted protests in places such as Charlotte, NC, New York City and Washington, D.C. One particularly disturbing protest involves a giant, inflatable banker chewing up people and spitting them out - as in the following video. 

Man, that's weird. 

Anyway, it made me wonder about how credit unions are doing with drawing new members away from their old banks.As a company that works with over 180 credit unions across the country, we know that there are a handful of credit unions willing to poke at the bruise left by the big banks to get new member's attention. 

Where Anger Fails, Marketing Succeeds

It seems like every six weeks, we get a new story about the "big banks" that drives people crazy, but we rarely see an "action step" coming from the other side.

Two opinions to consider when it comes to working with "Bank Rage" - that of Paul Lucas of Paul J Lucas consulting, and that of Ron Shevlin at Aite Group. 

In the April 12 issue of the CU Journal, Paul Lucas outlined three major action items for credit unions looking to sway the opinion of the non-member. 

1. Marketing Core Loan Products - That loan capital is capital you can count on, and do more with in the long run. 
2. Cross Sell Checking with Direct Deposit - says Lucas, "Cross selling at every opportunity is the hallmark of a smart, competitive credit union."
3. Keep Your Promises - "Knowing a member's name when she walks in the front door is not service. Handling her transactions with speed and accuracy is service." 

And speaking of service...I read a very thoughtful article on Marketing Tea Party, the new blog by Ron Shevlin. Titled "Moving His Money", the post tells the tale of a man with a long relationship with his community bank that, because of a series of unfortunate transactions, decides to move from a little bank TO a big bank. Says Shevlin in the post-story commentary: 

"This isn't a good sign for those marketers. The populist anti-big bank sentiment isn’t going to last forever. America loves to find new villains to crucify. Knowing when to jump off the #moveyourmoney wave is a decision that needs to be made."

My Rant: Why do credit unions always fight over the small piece of the pie left to them? Let's quit marketing against each other, continually moving our 6% market share between credit unions and let's figure out a way to collectively go after the 94% opportunity share out there and move it to credit unions before it's too late. 

Comments?

NACUSO Annual Conference Wrap-Up

by Ron Daly 

Just got back from this year's NACUSO Annual Conference and happy to see that the attendance was up. Even more glad to see a number of new CUSOs and first-timers at the event. Many of my contemporaries, collaborators, business partners and friends were in attendance to share their thoughts and feelings about the current state of credit unions and CUSOs. The theme of this year's conference was "Big.Bold.Smart." I think the description fits. These three simple words sum up what credit unions need to be in the coming months and years. 

• Big - We need to drive up investments, membership and assets across the board to keep ourselves alive.
• Bold - As we've talked about before (in the wrap-up of the NACUSO Regional Meeting), CUs need to start drinking a little of their own Kool-Aid and acting like the super institutions we know they are. 
• Smart - In the course of being bigger and bolder, we need to stay smart and do right by our members and our bottom line. 

In my opinion, the conference did a great job of bringing together industry professionals to talk about ways to grow CUSO and Credit Union "opportunity share" through networks and collaboration. Interesting the difference between market share and opportunity share and how a small networked revenue piece of opportunity share could surpass the revenue brought in by large market share bought with a low-cost pricing model. 

Couple of questions that I jotted down that successful organizations ask themselves and might be worth your time to answer for your shop 

1. What is your value proposition? 
2. Why Me? AKA - Why should a customer or partner choose you for the service you are selling?
3. How does your value proposition help you compete? 
4. How can you switch your offering to compete for a share of the opportunity vs. a share of the market?

Some of the highlights that we wanted to share with our loyal Soapbox readers: 

• NACUSO has put a list of presentations from the conference online on their website. Take a look at presentations from Jeff Russell (TMG), Guy Messick (Messick & Weber), Dennis Dollar (Dollar & Assoc.), and George Hofheimer (Filene)
• NACUSO's Twitter feed had some great highlights - follow them and give it a read.
• CUInsight offered up some YouTube videos of Interviews (including one with yours truly!). Click here to view.
• CUInnovators' blog has a detailed wrap-up with even more links and info. Click here to read, and don't miss the interview with Robbie Wright on the aforementioned CUInsight video page.

Congratulations to our partner Ongoing Operations for winning CUSO of the year!

Let's Talk About Money

by Greg Crandell

[Editor's Note -- Ron Daly is off for the week, so Greg Crandell, DigitalMailer's Executive Vice President, is stepping in for a guest post.]

I'm certain my kids are going to cringe if ever they read this, but I'd be remiss if I didn't start out with this phrase. 

IN MY DAY...people didn't talk about how much money they were making or what they were doing with it. The most chatter that went on about a person's money matters happened when your neighbor drove home with a new boat dragging behind the car. Hopefully on a trailer, because there's no faster way to ruin a boat than by dragging it down a rough street. 

But the times, they are a'changin', as they so often do. People are becoming more open, sharing their thoughts via Twitter, their home movies via YouTube, their hobbies over Etsy and their...well, everything via Facebook. Facebook surpassed Google in total visits to its homepage a few weeks ago and, as CNBC says, it's "a sign that the web is becoming more sociable than searchable".

Even as the world wide web begins to bring people even closer together, online banking becomes a greater part of people's finance management. Of course those realms are going to overlap, but to what effect? 

Send the Word

by Ron Daly 

Charity begins at home - or in some cases, on your home page. 

As the head of DigitalMailer, I get to see every email that goes out on behalf of our clients. I take a few moments to read things over and get a sense of what CUs are up to all over the country. Right here in Northern Virginia, Belvoir FCU has teamed up with Cell Phones for Soldiers to provide our service men and women with cell phones to call home. 

 

 

This was something I'd heard of before, but the full story of Cell Phones for Soldiers is really quite impressive. 

From Belvoir's marketing email: 

NARFE Premier says "Get on board!"

by Ron Daly 

[Read all about this story on CUTimes.com or at CUNAMarketingCouncil.org] 

NARFE Premier FCU in Alexandria, VA started using the Automatic Relationship Builder last summer to bring new services and products to members' attention. 

Wanting to branch out into the world of email marketing, NARFE Premier marketing director Jessie Dederer turned to the team at DigitalMailer. Our recommendation? An on-boarding program aimed at new members who may not have been aware of everything NARFE Premier had to offer. 

On-boarding campaigns are aimed at members that have just joined a credit union. The Automatic Relationship Builder takes in new member lists and sets up a series of emails to be sent to those members across a few weeks. A simple welcome email is followed by information about loans, mortgages, HELOCs, credit cards, checking accounts, money market accounts - anything the credit union thinks would be of interest to new members. 

NARFE Premier's own campaign proved to be a great success. Deposit accounts increased 24%, while loan accounts increased 190%. From the CU Times article on NARFE Premier's on-boarding campaign:

"This helped trim our marketing budget by 40%, and we are looking at finishing the year spending 50% less," said Dederer. "It's a win-win for everyone. We save money and are still able to deliver the same message with better results while reaching our members the way they want."

Want to get started with your own, customized on-boarding program? Click here to contact us.