eManners: What Does "Polite" Look Like Nowadays?

by Ron Daly 

It's always interesting to read an article that challenges convention, then see the blow-back from that article, then see the author's response to the blow-back. With so much media to manage these days, conversations and commentary come out of the woodwork. If they don't reply on your blog, they'll reply on their blog. Or on Twitter. Or on Facebook. Or by phone. Or right up in your face. 

Take, for instance, this opinion piece by Nick Bilton in the New York Times. It's a piece that rails against the "Thank You!" email, the voice mail where a text message should go, the use of friends to answer a question that's made for Google. 

Really, who sends an e-mail or text message that just says “Thank you”? Who leaves a voice mail message when you don’t answer, rather than texting you? Who asks for a fact easily found on Google?

Don’t these people realize that they’re wasting your time?

As you might expect, the lament of a 36-year-old super-geek didn't sit well with readers, many of whom are from a generation removed - one that emphasized penmanship, greeting cards and always saying "please" and "thank you". 

Do I really care about "Thank You" emails? No, not really. They're nice to get, and if they have more information or want to continue a conversation, why not? But I'm not going to lose sleep, nor should anyone looking for a reply from me be upset if I just move forward with the next steps after I get an email with an "action item". 

Bilton again, with a worthwhile consideration: 

How to handle these differing standards? Easy: think of your audience. Some people, especially older ones, appreciate a thank-you message. Others, like me, want no reply. “It is important to think about who the relationship is with,” Mr. [Daniel Post] Senning said.

Audience, audience, audience. The number one consideration in marketing, business, sales, collections, consultations, etc. You have to remember to whom you're talking. 

Based on the reactions he got, you might think Mr. Bilton hasn't considered his audience's reaction. Spoiler alert: they got mad. They called Bilton a "sociopath" (no, really), irrational, impatient, sad...they really didn't like the idea that he didn't want to talk to his mother directly, but rather via Twitter. Bilton later explained that his mother lives in England and, as a San Francisco resident, he couldn't call her at any hour that was convenient for both of them, so they rely on Twitter to fill in the gaps. He talks about how he does, in fact, hand-write thank you notes to friends and relations. But too late - the audience had made up their minds.

Bilton says he doesn't mind being "the punching bag" for people his age. He did lament, however, the extremes people go to when they react to something they don't like. They talk about how disgustingly disconnected from reality he must be to dislike a "thank you" message. Bilton replies that the stewards of Emily Post's legacy of good manners insist that, yes, you should consider the audience when crafting a reply. Some people will love a "thanks!", some won't. Some people will want a voice mail, some will just delete it. 

And then Bilton made a really terrific point about who trains whom in our culture. It used to be that older people taught younger people everything. As technology advances and people develop skills at different ages, it's clear that education moves in two directions: up and down the years, each generation having something to offer the other. 

I had to learn to text if I wanted to get an answer to a simple question out of my kids. My younger employees come to me if they want my input about business or finance. We have many ways of communicating and we all have things we need to get done, so we all have to adjust our methods from time to time to make it work. 

Now...let's talk about "what you've always done" and member communication. 

The truth is, things change. People want to converse and conduct business in different ways, and the methods they use are changing all the time. But in embracing changes, consider the audience's reaction to your messages. Maybe one group really loves hearing from you every month. Maybe one group wants a phone call every once in a while. Maybe there are outliers - people who have adopted new ways of handling all of their inputs and have rolled with the changes. 

Pay attention. Knowing how to talk to people is critical to a credit union marketer/manager's livelihood. Knowing when to say something and what to say is so important, and just as important, knowing when to quit talking and let people get back to their lives. 

My Pet Peeve: When you use an online chat or a toll-free line for customer support and people keep pushing the script on you when you've made it very clear that you're done. 

Me: "Well, thank you, that's all."

Them: "Okay, Mr. Daly, is there anything else I can help you with today?"

Me (in my brain): "Are you not listening? Or are you just forced to do this, like a robot?"

Me: "No, that's it."

Them: "Okay, thank you for calling our help line. You can reach us online any time at www..."

Me (in my brain again): "Come ON, just say goodbye and hang up the phone."

I like dealing with people, not people ordered to act like a computer. Here's my dream customer service call.

Me: "Well, thank you, that's all I needed."

Them: "Okay, Mr. Daly. Have a good afternoon."

Me: "Okay, bye!"

I've had maybe three of these calls in my life. And I make a lot of calls. 

All it takes is a little listening. People unsubscribe from your newsletter? Fine, but make a note of that. Don't chalk it up as "this person's not interested"...find a way into their lives that works for them and you. It exists, I'm sure. 

And when they talk, listen. And when they reply, read it thoroughly. And when they care, you should care, too. 

Don't let technology fool you into thinking that etiquette and thoughtfulness don't mean anything, to any given age group. Treat members with respect and you'll earn theirs. 

And for what it's worth? You should call your mom on the phone. Unless she's totally into Facebook now. 

Google's Killing Its RSS Reader. How Will Your Readership Survive?

There are times when the leader of a business knows he or she has to kill off a product. In some cases, this is celebrated. In others, it's met with many loud groans and much sadness.

Google Reader is a perfect example of the latter. Widely used, widely adored, free to all - but on July 1, it gets the proverbial knock on the head from Google. This simple, lovable web service is going to that big farm upstate to chase rabbits. Yeah, that's it. Rabbits.

Hopefully, this won't affect the "CU Blogosphere" too much. Heaven knows there are plenty of places to get your fill, including CU Insight, the CU Watercooler, various Twitter feeds, Facebook feeds...the list goes on, but you get the point. Just because Google Reader dies, that doesn't mean the stories stop coming.

But for those RSS-heavies, it's going to be a rough few months. Where will they go for their stories, their thought pieces, their news?

Humbly, I submit a few suggestions.

1. Outlook Users, Rejoice! - I'm forever in Outlook (Neil Diamond, where are you? I've got a song for you and you don't even need a new melody!), so the Reader news doesn't bother me that much - I had one of my Nerds-in-Residence set up my RSS feeds in my Outlook. It's a simple, painless process and it means you can use Outlook for more that just email churn and booking meetings. Here's the Outlook team on how to set it up for yourself.
2. Mac Users, Hit the App Store - The Mac App store has a few dozen RSS-app options, a few of them free, the rest only a small amount. One thing I did notice - many apps are "Google Reader Apps", meaning they integrated with Google Reader. Wonder if their developers will try and adapt or simply close up shop.

   One highly recommended app, Fever, is $30 (yikes!) and its developer has stated, publicly, he really doesn't have the time to work on it. Plus, you self-host the service. A big turn-off for the non-technical.

   So what are our lonely Mac Lovers going to do? I turned to my go-to on things like this, Jimmy Marks, and - after several minutes of teasing him (he's a big-time Google Reader Believer) - asked what he planned on doing.

   "Feedly's probably the way to go. It's not as cut-and-dry as Reader is, but it focuses on the newest content and lets you navigate around on your terms. I don't use Mac's Mail app, or I'd do what you did and add the RSS feeds there. Now stop throwing paperclips at me, I'm in a bad enough mood as it is!"
   
   (Editor's Note -- I wasn't throwing paperclips at him. That you know of.) 

3. See If Your Favorite Blogs Have Social Feeds/"Updates by Mail" Options - Many blogs have their RSS items go directly to their Twitter or Facebook feed. Others still use direct-to-inbox delivery to get the message out when it's time. The CU Soapbox's posts go to a mail audience in the hundreds, many of whom prefer to read their feed from the comfort of their email inbox. Giving people different points of entry doesn't do anything to the results - if they're reading and engaged, you're doing your job.
4. Google's Cleaning Up, Why Don't You? - If you're anything like me, you've gathered quite a few blogs over the years. Many of them stop posting and you just sort of forget about them. Go ahead and delete those feeds. This frees you from the struggle of bothering with too many blogs and sets you up to find something new and exciting out there in the blogging world.

There are plenty of people who want to petition Google to save Reader. They're probably the same kind of folks who are waiting on that Arrested Development movie. Want my take? Let's give Reader a good send-off and then move on to bigger and better. There are always better apps out there, and if there aren't, it's our duty as lovers of technology to create them. Necessity is the mother of invention.

As far as how this applies to credit unions' blogs...you went to all that trouble to create a blog or a news feed or an events feed. Will people still follow it when Reader bites the dust? Better be sure they do. Find new ways to get the same content to the same people without the crutch of Google Reader and you're good to go.

Conventional Wisdom Vs. Real, Actual Wisdom

by Ron Daly

There's what people know, and then there's what people "know". 

And whaddayaknow? Typically, they're complete opposites. 

 You see, there's "conventional wisdom" - what people think they know based on their personal experience - and then there's "real, actual wisdom". "Real, actual wisdom" typically shows up in the form of unbiased research with clear results. Is it more "trusted"? No, not likely, because nobody wants to feel like they're wrong. But it is a reflection of the truth. 

What got me going on all this is a recent Nielsen Group study on teens and technology. Now, "conventional wisdom" tells us that teens are wired and great with technology. What does the "real, actual wisdom" tell us? 

Teens are not technowizards who surf the web with abandon. And they don’t like sites laden with glitzy, blinking graphics. Teens are often stereotyped as only wanting things that are bold and different. They’re also often viewed as being fearless about technology and constantly connected to some form of media. Although this might be partially true, it’s an oversimplification and letting this steer your design can lead to disastrous outcomes.

The study Nielsen conducted focused on the ability of teenagers to gather information and see a process through online. What did the study find? That teens had poor patience and attention spans, poor reading skills, and bad research methods. They weren't as good at finding the info and making the right decisions based on what they found. 

The study goes on to talk about what works with teens and what fails. What works?

• Smart, concise writing
• Large, readable fonts and big images (to compensate for small screens)
• Self-selecting social and email (yes, email) options. 

Wait, that sounds like a list of things older users would like!

Not to sound like a teen, but...DUH. 

Who doesn't like reading things that are easy to understand? Who doesn't like a website that's built large enough to read and use? Who doesn't like to have the option to not socialize every single online interaction? 

A little research goes a long way. For a while, when I would describe our newest product, My Virtual StrongBox, the people I talked to would tell me that their older users wouldn't like it. After pulling demographic information for  My Virtual StrongBox's users, we discovered that use was highest among ages 30-39, and second highest – yep, you guessed it – among users in their 40s and 50s. "Conventional wisdom" made it seem like a product built for Gen-Y. "Real, actual wisdom" proved the real market had a touch of gray. 

Long story short? Take the time to ask, to record, to report, to study – to really, truly know.

Then, act.

A Penny Saved is…Still Not Enough to Save the Post Office

by Ron Daly 

Well, my plan to invest my retirement in forever stamps is paying off nicely.

Yesterday, the United States Postal Service increased the price of a stamp to $0.46. The rest of the postage prices jumped, too, but it's good news if you've got a bunch of forever stamps sitting around - they're gaining value all the time. 

The USPS has the right idea - postage prices should increase, considering the fact that letter volume's dropping the way it is (heading to about 150 billion pieces of mail - seems like a lot, but that's actually waaaay down). And, lest we forget, the post office is bleeding about $25 million every day according to the postmaster general. Some estimate they'll be out of money and out of service in the next six months to a year. Will a penny more per mailed letter really save them? No, but it's better than standing still. 

Wait a minute, Mr. Postman...

In 2006, the USPS turned a $900 million dollar profit - yeah, you read that correctly. A profit. Hard to believe about an organization that in 2012 lost $16 billion. Where's all that money going? Is the sharp drop-off in mail volume to blame? Is it all the Postal Service's fault?

No, it isn't. As with just about everything these days, you can blame Congress. 

See, 2006 was the year Congress passed a law requiring the USPS to fund pensions through the next 75 years. I can tell you, this is unheard of in business - nobody's shoring up that much cash to pay employee pensions. Nobody. It's suspected that $11 billion of that $16 billion lost in 2012 went to pension funds and labor. Add to that the fact that mail volume's dropping off and Congress has been inflexible on the idea of killing off Saturday delivery (a measure that could save the USPS about $2 billion annually), the USPS has been fighting with one hand tied behind its back.

So, what's the solution?

There are plenty of people nationwide who are eager to see the post office saved for future generations. This Esquire article goes in-depth about the problem's the USPS is facing and how a complete dissolution of the entire postal service would be a blow to the American way of life. There's a new petition on WhiteHouse.gov to "save the postal service". But how to save it?

One possible way out? Undo the curse of the pre-funded pensions and let the money in that fund be dispersed to the post offices and carriers that need it. But that would require Congress's action in undoing what's been done. 

Congress? Action? Hmm...what's our other option? 

Oh, right...a taxpayer funded bailout. Taxpayers would fund the pension program and alleviate the post office's responsibilities. 

Feel like bailing out one more industry that can't handle the future? 

And speaking of the future...how bad off would USPS retirees be without the pensions in question? 

Not that bad, says Jen Wieczner at SmartMoney: 

Despite the Postal Service's debt, its retiree benefit coffers are beyond full. Its pension funds are more than 100% funded, compared with 42% for all federal pension funds and 80% for the average Fortune 1000 pension plan. That "astonishingly high figure," according to Williams, amounts to a "war chest" of resources that will take care of older workers for decades to come. 

So either way, it comes down to Congress. Keep your eyes peeled, there'll be a brouhaha on the Hill about all this, likely before the summer rolls in.

And in the meantime, what should you be doing, oh weary credit union marketer? 

The Broken Window Problem

You might be thinking, "yes, let's save the post office - we'll send out more mail!" It turns into the old Broken Window Fallacy - someone breaks a window, the window gets replaced for a certain cost, everyone starts a window repair business, and then all of a sudden...no broken windows. So what do people do? Start breaking windows to save the window repair businesses. 

It's wasteful and stupid. And so is trying to inject more mail into a beleaguered system because you feel bad about its shortcomings. When Western Union announced it would stop delivering telegrams, where did all the protests occur? Where was the petition saying an outmoded form of communication must be saved? 

I like my postal carrier. I like getting a letter every so often. But I don't walk around with 400 pieces of mail in my pocket every day. I do walk around with a small, touch screen computer that manages all my email, sends me text messages and even places phone calls. 

Now, let's look at credit unions. In a time when many CUs are closing their doors or getting merged, who can afford to overlook the significant cost savings that come from online banking, online account opening, eStatements, electronic bill pay, debit cards...the list goes on, but I get the sense I'm not telling you anything new. 

We started  DigitalMailer 13 years ago because we knew that the two things credit unions really want (operationally speaking) are to A) generate revenue and B) cut costs. You can't do that when you're chained to the giant rock of printing and postage. We've delivered close to 60 million eStatements over the years. At $0.46 saved per eStatement, that's $27.6 million that would go out of the pocket of the Post Office (sorry we're not sorry) and back into the pockets of the credit unions we serve. We've created products like One-Click Enrollment to help make that transition easy, and most eStatement converts never look back. Promoting education and organization to members through online account and document management is part of the greater mission of credit unions.

Heed that call and stop worrying about whether or not the Postal Service can survive. It'll take a fight with Congress, but it can be done. And even when it is, don't be surprised if the USPS still cries foul at the drop in volume. They had the chance to latch on to emerging technologies and ignored it, favoring the old ways instead of a new path to profitability. They didn't take it. 

Time for you to consider that new path for yourself. We're famous for avoiding bailouts. 

As for me, I hope postage jumps to $1 - my all-forever-stamp portfolio is looking better and better.

People Are Lending Directly to One Another…So What Are We Doing Here?

by Ron Daly 

Today on CreditUnions.com, I was drawn to an article titled "Beyond the Home Loan: What can credit unions learn from online crowdfunding platforms?" [Here's the Full Article.]

While the article doesn't spell out the overall lessons, there are a handful of examples. Good enough, I suppose, because it got me thinking - what are we missing? 

Credit unions, as best I understand them (and after 30+ years in the business, I can honeslty say I do), were created to give members a way to lend to and borrow from one another. They were created as an alternative to the system. Now, for consumers, it seems like we're just another part of that "system". 

Bank customers and credit union members know that good loans go to good paper. If you're trying to buy a home or a car and you have a good credit score, you won't need to look for too long to get what you need. But if what you're trying to do is create a movie about Linotype machines or start a small business selling weirdly-shaped candles, you'll likely go wanting. And for the people who have rough credit, quick, high-interest loans with fewer strings mean more than "relationships" with a bank or credit union. 

As far as peer-to-peer finance and technology goes, you're crazy if you don't go read "A Game of Leapfrog" by Brent Dixon. 

From the article, originally published on the CU Watercooler: 

But meanwhile, many credit unions still don't even offer online account opening. We're saddled by regulations. We're a weighty, slow-moving beast. We make excuses.

Consumer finance is not just begging for disruption, it's experiencing it. In a few short years, many traditional institutions will be passed over. Leapfrogged. It's easier to build than reform, and people are building.

So, what can credit unions learn from peer-to-peer finance today?

1. Time to Re-evaluate the "People Helping People" Message -
   
   Everyone I talk to in the industry loves that phrase, but how many credit unions are interested in the proof of it? When a person lends to Kickstarter, they get a "thank you" in the form of a gift - maybe a version of the product the borrower is developing or a branded package of swag with the up-and-coming product or company logo. What's the "thank you" gift new members get at your credit union? A letter? A free pen? 
   
   Better yet, where are the booklets and brochures with member success stories? Show me the story of a member who joined and went from broke to flush thanks to the credit union. Show me the small businesses that have benefited from the CU's guidance. Those stories have got to be there. Otherwise, my fees and interest are going toward nothing, as far as I can tell.
   
   
2.  Partner Big, Lend Small - 
   
   According to the CreditUnions.com article above, services such as Kiva and Fundly use proven tech platforms like Paypal and Amazon to process payments and securely move money to and from borrowers and lenders.  Why can't credit unions partner with tech providers for everything they need - better online banking and account opening, smart phone apps, tracking of the loan process, etc.?
   
   It's not that they can't, it's typically that they won't...or don't want to. Even when vendors provide all the due-dilligence and proven testimonials and case studies, credit unions will still look for ways to doubt results. Who does that help? Not the member, certainly, and not the loan portfolio.
   
   And look at the amounts certain people are requesting - $300? $500? They'll go to a payday lender before they walk through your front door, how is that a good thing? It's not because the money isn't expensive - the rates on these small, short-term loans are outrageous. But people see fewer barriers to entry. They don't know they're walking into a trap. Shouldn't being more accessible be a goal for every credit union?
   
   
3.  Never Turn Away From Your Social Missions - 
   
   People value charity, philanthropy, benevolence - not because they're "trendy", but because they're the right thing to do. We know hundreds of credit unions that partner with great causes but rarely explain the depth and their level of involvement. Why shy away from talking about things like Credit Unions for Kids? Share the good news with more than just a parting shot in your newsletter - make it a cause that you champion, not just "support".
   
   
4.  Play the Game, But Play to Win -
   
   Sure, LendingClub and Prosper.com are growing enterprises. But are they human enterprises?  Can they really lend and handle deposits the way you can? Are those prepay debit cards celebrities seem to love so much really a better alternative? The answer to all three of those questions is "no". 
   
   You can provide deposit insurance. You can provide security. You can provide convenience. You can do it all and, if you do it well, you can show everyone that you're not "just another bank" - you were facilitating "peer-to-peer" before it was cool. And you're still here now.
   
   

It's not just lending that's being overtaken by "the people" - it's debt forgiveness, too. The Rolling Jubilee raised half a million dollars, bought up thousands and thousands of dollars of debt from banks, and forgave it. These "gifts of forgiveness" went out to average consumers, bogged down by medical or educational debt, and told them their debt was forgiven in its entirety. 

Your average consumer now knows that there are multiple ways to manage one's money - there's the bank, there's the credit union, or there's "none of the above". 

We USED to be the way people loaned money to one another...now, we're a hinderance. We get our "people helping people" status back by being adaptable, affordable, approachable, and dependable. 

Let's get to it.

 

The First "Duh of the Week" of 2013 is One for the Record Books

by Ron Daly 

Ever bite down on your tongue while you're eating a lemon? It's a double-whammy of pain. There's the acidic burn of the lemon juice and the "yow that smarts" of cutting your tongue with your teeth. The thought of it is enough to make you wince. 

It's one of those blunders that you could have avoided in a few different ways. For one, stop eating lemons, you weirdo. For two, chew more thoroughly. You've got no one to blame but yourself. 

The first "Duh of the Week" has a lot in common with this twofer of pain - it's something that could have been avoided and it's easily the stupidest combination of dumb ideas I've ever heard.

A Portland-area teen...

1. drove home drunk from New Year's Eve, then 
2. told everyone about it on Facebook.

What a dumb move. For starters, he drives home drunk (under-aged, mind you), hitting TWO PARKED CARS in the process. As if that wasn't enough of a bonehead move, he POSTED ABOUT IT ON FACEBOOK, complete with a little winky-face emoticon. 

If you have young people in your home, now's the time to have "the talk" with them.

• Sit them down. 
• Tell them you love them. 
• Explain that if they need a ride, you'll come get them, no matter the situation.
• Tell them they should never ride in a car with a drunk driver.
  
  And lastly...
• Gently remind them how hard you're going to kick their butt if they ever do something this idiotic. 

Drunk driving kills people, and when it doesn't, it can cause untold damage of another kind. The last thing your kids should ever want to do is drink and drive, and the second-to-last thing they should ever want to do is brag about it on a social network. 

Kudos to the thoughtful Facebook followers who informed the police and got him booked for his idiotic crime. Maybe now, he'll be sending a status update: 

"In jail :( Not as fun as I though it would be..."

Are your employees behaving resposibly on social media? Is the person in charge of your Facebook account making the right decisions?  How sure can you be about all that? Time to start that long-awaited social media policy, maybe? Maybe employees can use "the talk", too.

Comments always welcome. Happy 2013 to everyone!

The Top 10 CU Soapbox Articles of 2012

Another year has run its course. We thought we'd wrap up this year of soapy, shouty goodness with a look at the ten best articles of the year (based on number of page visits). 

It's interesting to see what had everyone talking early in 2012 and how much things changed in a few short months. What do you think will be the hot news item of 2013? 

As always, thanks for reading. Here's hoping you enjoy this look back, and we'll see you in a few days for a new year of the CU Soapbox. 

1. The "Overly Attached Girlfriend" Approach to Follow-Up

   We've all met people like this...people who can't let go. They're the people who obsess over their relationships and go a tad bit crazy. It's not just "girlfriends" that do this - boyfriends can be just as guilty, as can best friends or even casual acquaintances.

   Or, in some cases, marketers.

   Click Here to Read the Full Article

2. WTF? What's Next, No "Union"?

   This is a crock. What's next? They start saying we're not allowed to use the word "Union" because labor forces complained? How are you supposed to tell people you're "much more than a bank" when you can't say the word "bank"?

   Click Here to Read the Full Article

3. Suze Orman gets into the prepaid card game -- and out of the good graces of the CU Industry?

   Suze Orman wasn't hired to promote CREDIT UNIONS, she was hired to promote NCUA and their capacity as the insurer of cu deposits. But people read "Suze Orman" and "NCUA" and interpreted that as "Credit Union Spokeswoman".

   Which is unfortunate, because Suze Orman just decided to set herself up as a prepaid card magnate.

   Click Here to Read the Full Article

4. Who Are the People in Your Neighborhood? Four Good Ideas for Getting Locally Known

   I've seen credit unions with extra-inclusive fields of membership. I've seen credit unions that have branches in far-flung corners of the globe. But let's be realistic - where are you?

   Click Here to Read the Full Article

5. Focused on the Community: NerdWallet's Top 10 Community CUs.

   The top ten weren't simply listed, ten-to-one. They were highlighted for specific achievements, such as "Best Business Support", "Most Inclusive", and "Best Loan Assistance Program".

   Click Here to Read the Full Article

6. Guest Author Marvin Umholtz: Stop Feeding the Strategic Crocodiles Snapping at CU Heels

   Although potentially unsettling for those who like easy answers, this overview’s’ fundamental premise is that today’s credit union leaders must thoroughly understand what they are up against and mitigate it. Credit unions aren’t paranoid if malignant forces are truly out to get them!

   Click Here to Read the Full Article

7. Everybody's Reviewing It! Why Gen-Y Depends on Other People's Opinions Online

   Why would the opinion of someone a Gen-Yer has never met mean more than their real-world friends and family? Well, in the real world, maybe not. If someone runs up to you on the street and screams "BUY AN iPHONE!", it might not make you break out your wallet right then and there. But when Bazaarvoice means "stranger", I'm pretty sure they mean a "reviewer". And what does a review have?

   Click Here to Read the Full Article

8. Still don't have a social media policy? Bet you'll write one after this...

   Think about it for a minute. Most of the videos in that story appear to be shot on a smart phone. What happens when it's not feet they're recording, but credit card and debit numbers? Checking account numbers and balances? Still not seeing a problem?

   Click Here to Read the Full Article

9. Too Many Text Messages Might Make Some Unhappy People Into Millionaires

   Papa John's is staring down the barrel of a lawsuit that might cost them $250 million...all over a few dozen text messages. Talk about your overage charges.

   Click Here to Read the Full Article

10. GUEST POST: Mark Arnold on Becoming Your Members' PFI

    Just think about it: what would happen if every one of your members just added an additional product or service per household? Odds are, your net income would skyrocket.

    Click Here to Read the Full Article

It's "American Pickers"…only the stuff's pretty worthless.

by Ron Daly 

 I like "American Pickers". I'm a big yard sale guy and I love the idea of getting a big return on a junky little find. One man's trash is another man's treasure, after all.

Unless it's just plain ol' trash.

We were cleaning out the office the other day and I discovered a few rare gems from a bygone age. Among them: 

Floppy disks! These little wonders used to be our way of moving files from one computer to another. Then, it was CDs. Then, it was thumb drives. Then, it was shared networks. And suddenly, these little springy disks just didn't cut the mustard. A little creative math tells us that a 2GB thumb drive holds as much information as 1,422 floppy disks. So why bother? 

Picked Price: ~$10 for a box of five in 1998

Current Value: Nuthin'. We don't even have a PC with a floppy drive anymore. 

Phone Books! Two of them. Yep, there are businesses that will still buy yellow page ads and there are still phone companies that will drive around and hurl these fossils out in giant piles. If you think there's anything sadder than an enormous stack of dead trees full of information no one really needs, think again - it could be raining on these piles, making them not only useless, but soggy.

Picked Price: Technically free, but I'm sure I'm paying for them some way or another.

Current Value: Diddly squat.

A big book on writing direct mail letters! And a heavy book, at that. For it's time, I bet this thing was a great value. But with the lack of attention people give letters anymore and the price of postage, this seems like an instruction manual on using your buggy whip. (Note: Yes, I know, I'm biased - but I'm a consumer, too, darn it. I don't give a lot of thought to direct mail pieces, other than whether to recycle them on throw them in the fireplace for kindling.)

Picked Price: Someone bought this in 1997 for $80, and it's in mint condition - we never even cracked the spine on this thing.

Current Value: I dunno...make me an offer. There are some interesting tips in here about writing, but you'll have to filter them through the past sixteen years of marketing changes.

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So what have we learned from this? Time marches on. We make new discoveries, set new goals and meet them, and the old relics fade away in the process. Sometimes, they become treasure - there's a big-time market on old typewriters, watches, fancy pens, and anything that's both stylish and useful - even in the age of iPads and wi-fi. 

But certain things are junk, plain and simple. I can't imagine a world where artsy hipsters get up early on a Saturday morning to find old Zip-drives and printer cables. They served their purpose. Hopefully, they've been recycled. But I doubt it. Most of that stuff got swept out of an office that was being renovated, driven to a landfill and chucked into one big pile of mess.

When it comes to technology, awareness helps, as well as an aversion to attachment. Consumers are being educated to love the new and the now and to dislike anything that's a generation back. We update our technology not year-to-year, but week-to-week - "apps" have turned the industry of creating and shipping technology on its ear, letting everyday people get in on the game and create apps for the entire world to use. Computer companies are trying to make every generation of computer slimmer, faster, and more powerful than the generation prior. Why wouldn't you want the fastest, the best, the least-complicated version of anything? 

Why would you do business with a credit union or bank that doesn't make the everyday act of "banking" simple?

Are you going to be a relic? Are you going to be rubbish? Or are you going to be so important to the lives of your members that they'd never dream of throwing you out in the trash?

The strong survive, but the smart thrive.  

If you have comments, leave them here. If you need me, I'll be out in a barn, looking through old soda bottles and bike seats. The rich life, here I come!

Self-Service Is About The Member [Live on CreditUnions.com]

[This article is live on CreditUnions.com, but we thought we'd share it here to make sure you didn't miss it.]

Banking technologies are continuing to evolve and their influence on the way financial institutions do business is skyrocketing. Not so long ago, direct deposit, audio voice response and online bill payment were the next big thing in financial services, but now they rarely turn heads.

Today, technology trends are following consumers’ growing desire to bank when and where they want, led by more than 75 million Gen Y customers. Members want mobile banking with deposit capability, and access to smart ATMs and self-service kiosks, inaddition to onlineand traditional delivery channels. And they expecttheircredit unions to keep pace.

That’s a good thing because satisfying members’ demand clearly benefits credit unions. Credit unions of all sizes are replacing or augmenting traditional teller windows with self-service kiosks and remote teller systems, some with video access. They’re seeing improved efficiencies and lower operating costs – along with the twin member benefits of greater convenience and less  wait time. For most, the shift toward self-service devices and applications is no longer a question of if, but when.

Yet, most people still want some form of face-to-face interaction, along with easy access. Even Gen Y prefers F2F for advice, financial planning or other money matters they’re unsure about, according to a 2010 Oracle study. For credit unions, that presents an opportunity and a challenge. How do you get on board with convenient, cost-saving technology while keeping the relationship-building service that has long been your credit union’s hallmark?

Read more at the CreditUnions.com website.

 

GUEST POST: Innovation Unveiled In The Big Apple

Alix Patterson is the chief operating officer of Callahan & Associates and serves on Callahan’s board of directors. She oversees Callahan’s media division and leads strategic planning sessions for credit unions. 

In this article, which originally ran on CreditUnions.com, Alix shares her thoughts about DigitalMailer's My Virtual StrongBox product - and her thoughts on the only company to present at FinovateFall 2012 that has direct ties to the credit union industry.

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Could you deliver all the information needed to set your institution apart from its peers in seven minutes or less? Could you trust your services, people, and products to perform in a live demo scenario, with all the movers and shakers of the financial industry looking on?

That was the challenge for presenters at last week’s New York Finovate conference. These individuals braved a judgmental Twittersphere (the caffeine was flowing freely) as well as technical issues at the venue to share their dreams with potential venture capitalists and financial institution partners.

While credit unions from across the country were in attendance, the second day of Finovate brought the only credit union-owned presenter - Virginia-based DigitalMailer - to the stage. There, CEO Ron Daly showcased the company’s latest product innovation, MyVirtual Strong Box. This solution lets consumers store personal records virtually with the financial institutions they already trust, instead of relying on third-parties whose usage and ownership policies could be a future point of contention.

My Virtual StrongBox integrates with a financial institution’s home banking platform, providing the first layer of security for members wary of using "the cloud" to store their personal documents. Then, My Virtual StrongBox encrypts each individual file as it is uploaded, ensuring that information will only be unlocked by the uploading party.

From the financial institution side, My Virtual StrongBox looks to be not only a retention tool but a potential revenue generator as well.

Credit unions can deploy a freemium business model with My Virtual StrongBox. By offering an initial amount of storage and then letting members upgrade for a fee, credit unions can generate new non-interest income.  Both Northwest FCU and DCU launched the product with an initial offering of 100MB free and members have already started to upgrade after hitting their maximum space allotment.

In good Finovate-fashion, Ron and his team also unveiled a brand new iPad version of the service, featuring all the capabilities of the regular offering in portable, intuitive tablet interface. 

DigitalMailer’s presentation provided a great reminder that credit unions and CUSOs are often at the leading edge of financial innovation. With any luck, next year’s conference will feature even more cooperative institutions bringing their big ideas into the limelight.

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This article appeared originally on CreditUnions.com and is the intellectual property of CALLAHAN & ASSOCIATES. No part may be reproduced, transmitted, distributed, published, or otherwise com­municated, in printed form or electronically, without the express written permission of CALLAHAN & ASSOCIATES.