When you know you’re branded…

Many people ask me about my flying pig logo.

What does it mean? Why did I choose it?

It does not mean “when pigs fly” as in “when hell freezes over” aka the impossible.

In fact, I adopted the flying pig as my logo to mean the exact opposite. Question everything. Why CAN’T pigs fly? We are only limited by our imagination. 

Today I received this pig in an email message from my dear friend Gene Blishen. Gene’s a super smart guy and someone I greatly admire. The fact that he thought of me, remembered my logo and sent me this pig made me realize that I have become branded. 

Brand is NOT your logo – it’s what it stands for. 

Thanks Gene – you made my day!

I’d say Happy 4th of July but I doubt Canadians care about our day of fireworks, cook-outs and general drunkenness.

Finally – The NPS Standard for Credit Unions!

I am very passionate about loyalty. And many of you know that I’m a kool-aid drinking Fred Reichheld NPS purist!

That’s why it’s so important that credit unions develop a standard methodology for calculating their relationship Net Promoter Score. The Member Loyalty Group has done just that.

The beautiful thing about NPS is its simplicity. Fred Reichheld intended the survey tool to be “open source” meaning, anyone can do it. You don’t have to hire a statistician to calculate the score.

Simply ask a random sample of your members (to calculate a statistically significant response rate use this calculator) the ultimate question:

“How likely is it that you would recommend the credit union to a friend, family member or co-worker?” On a scale of 0 – 10.

Those that score you a 9 or a 10 are fiercely loyal promoters. They will do three things for you:

1. Buy more from you.
2. Market for you.
3. Tell you how to improve their credit union.

 
Number 3 is done by asking the simple follow-up question “Why did you answer the way you did?”

Detractors are defined as those that score you between 0 and 6. Why such a large scale? Because Fred found in his twenty years of research that loyalty is not easily won. And those that score you even a 6 are likely to defect. Passives are members sitting on the fence at 7 and 8. They are satisfied but can be easily wooed by the competition.

To calculate the value of your brand you simply take the percentage of promoters (your loyalty assets) and subtract the percentage of detractors (your loyalty liabilities). According to Member Loyalty Group, the average credit union industry score is 55%. This is nearly five times the banking industry. But I think it should be much higher.

Remember, hope is not a strategy. I know many credit unions have engaged in this important measure but are hoping their scores go up. Tying employee incentives to such a goal without really diving into the data and listening to members. NPS is not a survey, but rather a discipline, like accounting. 

The founders of the Member Loyalty Group get this. Addison Avenue, BECU, Baxter, Educators (Racine, WI) San Francisco Fire and America First all have Member Loyalty as a separate department in their organization. They listen and respond to members daily. Not annually.

My passion for this program – that I really think is the missing link between your credit union’s brand and your bottom line – began with the Filene Research Study that was published in May of 2007. At that time, the benchmark came in at 54.3%.

Two years later we raised our number to 55%. I still think that’s way too low. And with the banks doing everything they possibly can to market FOR us right now – let’s get that number up!

Who’s with me?

How was YOUR last promotion?

I was in Manhattan last week with my nephew. I wanted him to see the Apple store before heading into Central Park. Oops. I forgot a new iPhone just came out. Not only was there a line out the door, but there were employees with laptops open keeping tabs on availability to those waiting. Similar to this new site. There were even cops there to keep the peace.

Want the new Kindle DX – get in line!

So, how was YOUR last promotion?

A French Canadian Twitter Moment….

I got to fill in for a speaker that fell ill at the CUES Convention in Montreal earlier this week. Since I was “punting” so to speak, Christopher Stevenson let me speak on anything I wanted. I decided to bring out the controversial Marketing to Gen Y piece I debuted last month. This session creates quite a stir and I love it!

I believe that this recession is going to cause no less than a revolution in the way we view marketing. I feel like old marketing is on one side of the river and new marketing on the the other and no one has figured out a way to build a bridge to connect the two.
So we just stay on our side and defend it.

And those on the other side of the river, (the Trey Reemes, Tim McAlpines and Jonathan Gowins of the CU world) are seen as well, not really marketing. They’re social media dudes.

Three things I know for sure:

1. The average age of a credit union member is 48. If we don’t young-it-up soon we will literally die.

2. Generation Y is not going to respond to your direct mail, come into a branch and read your brochures or listen to you radio ad.

3. We have to stop STALKING our members and need to start TALKING to them.

Many people claim that Twitter is the new black. I think Twitter is the “it tool” for sure. And a great way to cut your teeth on this new way of marketing.

The biggest “push back” I get from audiences when I talk about Tweeting and Blogging is “Well, how much TIME does it take?”

My answer is “As much time as you want.”

This was an older group in Montreal. I know cuz I asked them. Three from the greatest generation, one from Gen X, zero from Gen Y and the rest, Boomers. No surprise.

So I asked “How many of you still read the newspaper every day.” Almost every hand went up. Then I followed up with “How much time does that take?” One guy answered “It depends if the Red Sox won or not and if anything interesting happened in the world.” Exactly. That’s how much time you will spend on social media. It depends. How interested are you?

I was online during the presentation and just for fun kicked it out to live Twitter. My network never disappoints. CUNA had posted a news bulletin, I clicked on the link, it was definitely relevant information for these volunteers. The big point I was able to make. In the “newspaper” world you MIGHT read about this in a month or two when the CU Times or CU Journal finally made its way to your In box. Am I right? All agreed. In the social media world – blammo. You got it now.

Markets are getting smarter, faster. There’s no excuse for being ignorant anymore.

The only way we can MAKE time for this new way of communicating is by giving up some of our old ways. My preference would be to just rip that band-aid off and stop ALL direct mail, radio, newspaper, television……..but I think that would kill some people.

So how do we bridge that gap between what has always been and where we need to go?

Go ahead, bite the Big Apple.

On Friday I took my nephew Tim (aka Tim Bob of the Northwest) to New York City. It was his first trip to the Big Apple. We had no real plans. After asking many of my friends, some locals and doing research, I was a bit overwhelmed with the options. The night before I asked my nephew what he’d like to see. He said, “Aunt Denise, I’m here to see you, so let’s just see where the day takes us.” 

And so we did. 

The highlight of our day, could not have been planned. It’s an experiment of sorts and that total serendipitous moment you live for. We got off the LIRR and walked to Times Square. It’s currently closed to traffic and the mayor decided to place lawn chairs in the street. Cheap ass K-Mart type lawn chairs. Grouped by colors. So you have the blue section, the red section, and so on. That was Timmy’s first impression of New York. People sitting in the infamous Times Square, watching the world go by, in a lawn chair.

We grabbed some street chow and joined them. 

I heart NY.  

Summer’s finally here – grab a lawn chair!

Just a song before I go….

To whom it may concern:

 

My friend Shari Storm twittered the beginning of that famous Crosby, Stills and Nash song this morning. And it got me thinking.

 

I used to hear a song on the radio. Think, oh man I have to buy that album. Next time I go to the record store, I’ll look for it. Whenever I entered said record store (my all time favorite was Music Millenium in Portland, Oregon – I can still smell it) anyway, whatever music was playing would distract me and I’d forget why I was in there. So I’d wander around and eventually buy something. Fumbling with the tightly bound cellophane in my car, then trying to slice of that one annoying sticker so I could finally free the disc. Pop it in, and off we go. 

 

Now I’m hearing a song in a bar, grab my iPhone, click on Shazam, identify it, buy it (for a buck) In a bar.

 

Traveling twice the speed of sound…..

 

I used to read a book review in say People magazine, clip it out, stash it in my purse until I went to the book store. Hopefully remembered it was there, look for the book (hope it’s in stock) and carry it home.

 

Now I’m talking to a stranger in a bar, she sees my Kindle, says “Oh man, I just finished this great book, you should get it.” Flick on the book, over to Amazon.com and blammo, I got it (and it’s 10 bucks off the print price). 

 

I’m at a credit union inquiring about opening up a business checking account. It’ll take a week to ten days to get my debit card, and checks. Mobile banking. They’re thinking about doing that. 

 

It’s easy to get burned…….

 

ATDDD = Attention to Detail Deficit Disorder

Thousands of US companies suffer from this neurobehavorial developmental disorder. It is characterized by a persistent pattern of aloofness, sloppiness, lack of concern for appearance and an acute obsession with the bottom line over the value of the customer. 

 

Though previously regarded as a Department of Motor Vehicles standard operating procedure, it has since been discovered to be spreading rapidly in airlines, banks, car rental agencies and even some beloved department stores. 

 

It’s a silent killer. 

 

Just this week, a frequent flyer (me) experienced an outbreak of ATDDD. It began as a simple thing. Maintenance issues on a plane. But it was apparent that they (United) had been suffering for some time. 

 

Signs they have full blown ATDDD. 182 passengers arrive at their destination 3 hours late, the flight attendant makes the announcement, “I know most of you had connections, well, all your planes are gone, please see a customer service agent when you disembark.”

 

Customer Service agent greets us: “Welcome to Denver, all of your connections are gone so you’ll have to go to the Customer Service counter.”

 

Me: “So we’re stuck here for the night.”

 

Agent: “Looks that way.”

 

Me: “Will you be getting our luggage to us?”

 

Agent: “Um, no. That takes too long.”

 

Me: “But you just said that we are ALL stuck here – can’t they just offload the entire plane.” 

 

Agent: “Yes, but it will take hours to process. But you can get an overnight kit at the customer service counter.”

 

Overnight kit contains: cheap black comb. razor. ketchup packet filled with shave cream. toothbrush and toothpaste.

 

 

 

The cure: Know your target audience. Know the competitors FOR your target. Make them irrelevant. Surprise. Delight. Empathize.

 

United airlines does not get that they don’t fly planes, they fly business travelers. Women AND Men. If our destination is for “business” we most likely don’t want to sleep in our clothes, wear yesterday’s hair and make-up on stage (while being filmed) to speak about becoming a tattoo-worthy brand. 

 

Anytime you hear “we can’t do that” or “it’s our policy” or “we’ve always done it that way” you may have symptoms of ATDDD. 

 

Seek help.

The First Date.

Our goal is to be our member’s primary financial institution. To do that we will need to cross-sell products that meet our member’s needs. And if we manage to get a bigger share of their wallet (say 3.67 services per household) we’ll have a profitable relationship and meet our goals. 

Sound familiar? Yuk. Also sounds, sterile, sales-y, and a little sleazy, in my opinion. What if we were to look at the new member experience as a first date.

How do you get that first date?

a) A friend recommends: “Hey, you should join my credit union and date my cousin.”

b) They respond to your advertising: “When you open a new account with us, you’ll get a free iPod and can I buy you a drink?”

Or

c) They’ve done some research (on match.com or Yourwebsite.com): “I like free checking, bill pay and long walks on the beach….”

You’re on this first date now (the member is sitting across from you) and it’s a little awkward so the best thing to do is strike up a conversation. You know, find some common bond.  

Good Ice-Breakers:

a) How did you hear about us?

b) What brings you in today?

c) Have you been a member of a credit union before?

Bad Ice-Breakers:

a) “Um, we’re gonna need to see your driver’s license and it’s $25.00 to join.”

b) “We have to make sure you are who you say you are (aka NOT a terrorist) before we can go any further.”

This would be like asking a first date to see their medical records and dating history before the cocktails come! Now, don’t get me wrong, all of these things are important, just NOT in the first five minutes.

I am considering dating. That is to say, moving my checking account. The thought of it makes me sick. I don’t want to have to “chat ‘em up and be charming” so the MSR won’t put 20 day Nazi holds on my checks for the first 30 days. I’m gonna have to get to know them and trust them. What if I don’t like them?

It’s a big deal. My entire financial life – my mortgage payments, Netflix subscription, wine club, cell phone bill – everything is going to have to physically be moved over. Then I have to wait for my new VISA debit card. Give up the one with the photo of Portland, Oregon (that I love so much) and getting what? Stock art! A picture of a share draft with a fountain pen poised to write? Arrrggghhhh….

It’s a scary world out there. Clearly the press is not great when it comes to banking. Maybe I should just stay in the relationship I have. It’s been a long distance one for years now. Maybe I can hang in there a little longer…..

I Love a Parade!

I flew home to Portland last week-end to see my dear friends march in a parade. Sarah’s the CEO of FSCC (the shared branching network) by day. By night, she has dreams. Dreams of bringing the Lacamas Shores umbrella drill team to the Rose Festival Starlight Parade.

It began with a film. Sarah hosts an annual Film Festival at her home in Camas, Washington. Robert Barzler’s entry, chronicling his journey as drill captain of the Yachats, Oregon umbrella drill team, peaked the town’s interest. Robert is the CEO of Point West Credit Union. 

They contacted Robert and began to practice. “When I sent out the email inviting people to our first rehearsal,” says Sarah, “I figured we’d get three or four, but 15 showed up! Lacamas Shores people are great sports!”

In July of last year they took first place in the Camas Days parade. (see page 7)

On Saturday, their dream came true – to march in the Starlight Parade. 250,000 people turned out on a gloriously warm evening.

It got me thinking about parades. Why do we have them? How did they get started? When did someone say, hey, let’s all get together, dress up and walk (or sail) down the way and wave at people?

I don’t care. I just love a parade.

It celebrates community and gives people a chance to be recognized for their efforts. One of my favorites “floats” was the Oregon Greyhound Rescue. It was simply a flatbed truck decorated like a living room with people sitting on sofas, greyhounds snuggled up next to them. Very sweet. Definitely raised awareness in such a real and unexpected way.

A funeral procession is a type of parade when you think about it. But it only has one entry. One float as it were. Instead of that dreary scene, we should have a parade that honors the life of that person. A marching band comes out and plays your favorite song. Your kids and grandkids are the grand marshals and get to sit in the convertible and wave to the friends that have gathered. All the things you loved and brought joy to would come next. So many people would like you to contribute to a charity in lieu of flowers – why not put that cause on a float? The hospice care folks (who are angels on earth) the American Cancer Society, you get the idea. 

Parades are celebrations of life.

Who would march in your parade?

Atlantic City and My Big Gamble….

The MySpace Generation: Marketing to Generation Y

That’s the title of my speaking topic for tomorrow. I’m up right after lunch. I expect to have board members and senior management in my session. And I’ve been losing sleep over this? Why?

Not because I’m 47 – technically on the cusp between the Baby Boomer Generation and Generation X. Not because I’m not prepared, in fact I think I may have over-prepared. I guess it’s because I feel like I’m going to poop in every marketer’s punch bowl tomorrow, and well, you’re my peeps.

But it’s been bugging me for some time now, so I have to say it. We have to STOP doing what doesn’t work. We need Marketing 2.0! Modern marketing. New tools in our toolbox. In doing my research I created a marketing/media timeline:

1681 is the year of the very first direct mail piece in America. A pamphlet published by William Penn.

“No Junk Mail” is a movement in Australia today.

1704 came the first newspaper in America. So far this year 3 major newspapers have gone out of print/business.

1876 was the first telephone call ever made. In 2003 Bush signed the Do Not Call Implementation Act to protect consumers from telemarketers.

1924 the first radio broadcast in America. In 1998 the Digital Millennium Copyright Act was passed allowing for Pandora type streaming commercial free customized radio.

1941 is the year of the first television broadcast in the US. Just 50 years later TiVo is invented changing the way we watch TV (commercial free).

1990 The world wide web is created. Marketers quickly tried to adapt this new medium to old school methods. Pop-up ads appeared and almost immediately software was created to block them.

How do you market to generation Y? You can’t. Period. So stop trying. Stop doing what doesn’t work. It’s no wonder the average age of a credit union member is 48 nationally. That’s one year older than me! Look at your web page, your last direct mail piece, listen to that radio ad you just produced, or clip out that newspaper ad and hang it on the wall above a teller’s desk- do you think anyone under 45 is really going to care?

It’s funny, but Generation Y acts very much the same way as our credit union founders. They are faced with exactly the same economic challenges, have traditional values and do not trust big banks but rather each other. They love to gather (think common bond) and give each other advice (think people helping people) they just don’t do it in the company lunch room. They do it on their phones and laptops on the subway, in the coffee shop, or just walking down the street.

We need to join this conversation. We need to stop TELLING them what they want and what they should do and start LISTENING to what they want and figure out what YOU should do.

Social network users are 3X more likely to trust peer opinions over advertising in purchase decisions.

1 word-of-mouth conversation = the impact of 200 TV ads!

We need to understand, word-of-mouth always has been, and always will be the best, cheapest and most effective marketing. Your direct mail pieces aren’t getting you word of mouth. They may get you some hot money.

Stop “going after” people and products and start targeting a problem. Kudos to Technology Credit Union for writing their own iPhone application! And to the 200 plus credit unions that are now Twittering (thank you Roger Conant for CUTweetTrack).

I don’t have all the answers. I don’t want to encourage R & D (rip off and duplicate) by just showing the things that credit unions are doing to attract this generation.

What are you doing in the Gen Y space that is worthy of a mention? What’s left of your common bond? Is there a cause in there you could get behind?

And because I’m going to be speaking to the League of IBM Credit Unions (now called the Alliance of Credit Unions) I leave you with their mantra. Think.