Experience Marketing: Are Credit Unions a Financial Commodity?

Walt Laskos recently published a blog post asking if credit unions are maintaining their edge.  This was spurred by a tweet that I had made from someone who follows me on Twitter.

“Listen up Houston CUs RT @adrienne78 I did not feel a warm greeting by more than one CU in my area but bank smiles and knows my name.”

In this financial climate, credit unions have received so much free press on a national level.  National media is doing the marketing for the credit union movement and speaking of the “credit union difference.” However, is this transpiring down to a local level?  What is happening in our communities?  Do our friends, family and community know the "credit union difference" or are credit unions becoming a financial commodity?

I spoke at the University of Houston-Clear Lake last night and about 85% in attendance were credit union members.  When I speak, I also advocate for credit unions and like to ask the audience to do some quick focus group recon.  The group was in the Gen Y U to Gen Y Pro range (22-30). 

We had a brief conversation about their credit union experience and many thought that it was the same thing as a bank or a banking alternative, but in the end, just another financial institution.

In the comments section on Walt's blog, Sarah Snell Cooke noted, "Credit unions are taking all the good publicity and member growth of the last couple of years for granted. Credit unions didn't got out and try to get attention, but basically they got mainstream media attention because they were the last ones standing. This recognition drove members to their doors. It's great that credit unions are trusted, but if they don't 1) treat members right, and 2) work to keep the media spotlight, they'll have had their 15 minutes of fame until the next crisis. Credit unions cannot rest on their laurels and not pick up the PR yoke or that member growth will die off and even reverse."

In regards to treating members right, this is where experience marketing comes into play.  What kind of experience does your member have in the branch, on the phone, on your web site, at an ATM or on a mobile device?  These are all touch points that provide different levels of engagement and different experiences.

The experience that your credit union provides to members through all the different touch points and channels will help your credit union rise above being seen as just another financial institution and commodity.

Watch the video below that I did with the Michigan Credit Union League as I expand more on these thoughts about how one company took a commodity (coffee beans) and capitalized on the experience delivered.

Comments

[Max Silver]

I like this article because it leads to other issues as well. Experience marketing is definitely a big part of keeping new customers, but there are many other ways as well. Just because everyone flocked to credit unions recently won't make them stay. CU's have to give them a reason to stay through experience marketing, flexibility of services, and just generally improving your overall offerings and rewards to them. Reward a customer and they are not soon to forget that.

[James Robert Lay]

Thanks for the comment Max. Like any relationship, a credit union member relationship must grow through care, conversation and a positive experience.

[Dan Rosenfeld]

You are so dead-on. CUs received huge mainstream media publicity and I'd love to see stats about membership growth over the last year or two. Paying close attention to the overall experience the CU provides to members at each and every touch point is imperative to growth in market share. They're all important, but some feel "service" only occurs on the teller line and the phones, where there's human interaction. This is becoming less and less true. Excellent points. Well said.