You are currently browsing the monthly archive for May, 2007.
Generation X turns 41 this year. Can you believe it? They’re old! Generation Y is already done with college and is in the workforce big time. Are you ready to question everything?
Gen X was summarily dismissed by marketers and employers alike - I think because there were so few of them and so many of us (sadly I’m a Boomer — but people tell me I think like an Xer and apparently write like a dude).
Anyway, now the “echo of the boom” (or Gen Yers) are a force to be reckoned with. And listened to.
They are the second largest generation in US history. The cover story in FORTUNE this month features our future employers.
SPOILER ALERT: If you have TiVo’d the season finale of The Office and not yet watched it, you may want to skip the next two paragraphs. If you don’t know what TiVo is, I feel bad for you.
If you don’t feel like reading the FORTUNE article, you can watch the season finale of The Office. Michael Scott, Baby Boomer Boss, thinks he’s a shoo in for the job at the corporate office. So confident is he that he sold his condo (on E-Bay). He asks in the interview if any of the other candidates have as many years experience as he does. The answer, of course, is no. That’s how Boomers got promotions. Putting in their time.
Michael does not get the job, and when he returns to the Scranton office to “unhire” his replacement he also asks the temp (Ryan) to get him a cup of coffee. Ryan reminds him that he is no longer a temp and doesn’t have to do that anymore. Cut to commercial. Final scene. The hiring manager is speaking to the new corporate executive on the phone - offering him the job - he accepts. He has an MBA (first time this is revealed) AND it’s Ryan - the Gen Y temp. He is Michael Scott’s new boss.
I’d like you to meet the generation that asks “why”. Why do most credit unions only stay open from 9 to 5 and during the busiest time of the day let their staff take an hour off? Why can’t the marketing department work from home, or Starbucks, or the park on a sunny day? Why can’t we wear flip flops (Boomers called them thongs- which of course the Xers made nasty, but popular) to work if we never see a member?
“Because we’ve always done it that way” and “Back in the day*….” isn’t going to fly with this group. I’m pretty sure they’ll just look at the Boomer Bosses with pity. All you’ll hear is “blink blink”. That is IF they don’t laugh you out of the room.
I had the privilege of meeting the future of the credit union movement last week. His name is Jesse Robbins. He’s starting a credit union. For the burning man community. He’s also a blogger that is questioning everything we hold sacred. Check out this post on the courage it takes to promote thrift.
As a movement we are not growing. As for our cause of promoting thrift - we failed miserably. This new generation gives me hope. I pledge to give them my time and my support. I hope you do too.
* According to Dane Cook, it was a Wednesday.
A friend of mine forwarded me a notice he received today from CUNA. It’s in regards to a new committee: The Membership Growth Task Force. In the body of the notice is a grim chart showing by decade the Annual Average Membership Growth. We’re at an all-time low.
CUNA Chairman, Allan Kemp McMorris is making membership growth at credit unions among his top priorities during his tenure. CU membership has expanded only 1.9% during the past six years. Down from 2.5% annually during the 1990’s and way down from the 60’s and 70’s when growth was 6.7% annually.
Seems odd that credit union membership growth would decline at the same time that many credit unions have expanded their fields of membership from those restrictive common bonds to territories as large as an entire state (Washington comes to mind where at last count 80 credit unions can serve everyone in the state).
It appears from the press release that CUNA has set up a page on the website to facilitate the sharing of ideas. “We are especially interested in success stories from credit unions of their own “best practices’ in successfully growing their memberships,” said task force Chairman Dick Ensweiler*
My biggest fear - that people are going to share their membership BRIBE ideas.
It appears when credit unions compete with community charter, they resort to membership bribes that, according to the book Punk Marketing, is really distress marketing.
“Distress marketing makes consumers think there’s something wrong, pure and simple. Avoid it and folks will respect you again.”
Some may argue that these are very successful campaigns. But are you getting LOYAL members? I might take the bribe, (iPod) but that doesn’t necessarily mean I’m going to be loyal. Just means I need an iPod.
Many credit unions are successful getting new members in the door only to see an equal or greater number leave out the back [door].
Remember the 80/20 rule? On average, 20% of your members will bring you 80% of your profits. Today it’s more like 10% will bring you 120% of your profits
What have you done for them lately? How are you rewarding members who are loyal to the credit union? Do they get an iPod?
SIDEBAR: *I heard Dick speak at a chapter meeting a couple of years ago. If you’ve never heard him he’s a big time credit union evangelist. He said - the best way to fight the taxation issues — ACT like a credit union. I cheered! He’s good people.
(read this blog while listening to Jimmy Buffet’s It’s My Job)
A dear friend of mine recently said he wanted the “job” of naming colors. You know, somebody HAS that job. I recently shopped for paint for our spare room. Do you have any idea how many names there are for beige? I ended up with “toast.”
If you have your nails done you probably have caught yourself reading all the names of red by OPI. My favorite - “I’m really not a waitress.”
And how about Crayola Crayons. Burnt Sienna What five year-old knows what that is?
I have a new name for white. It’s sunny in Seattle today. Supposed to get up to 80 degrees. I’m wearing sandals and a skirt for the first time in months. I’ve decided my legs are “Pacific NW winter white.” Kind of a cross between cream with a tinge of light blue. It’s really kind of hideous for a leg. But it wouldn’t look bad on a ceiling in a nice matte finish.
As some of you know. My entire world changed last year when I read the book The Ultimate Question. I’ve been consulting for six years now. Started out calling myself a “Brand Consultant” but realized too many people thought I did name changes and logos. That’s not brand. Brand is your reputation. If you have a sucky one, all the marketing in the world is not going to help you.
I now refer to myself as a Culture Consultant. Ever since I met Ken Blanchard and had him sign my copy of Raving Fans I knew that I wanted to work with the “experience” portion of business - not the advertising. Keeping it real I guess.
What gets measured gets managed. For 20 years I worked FOR credit unions. We measured ROA, loan-to-share, delinquency, net worth, loan growth,you get the idea. All those measure the widget. That was a our scoreboard. If a number slipped we’d “manage” it by marketing more widgets.
Simply put, we managed the bottom line.
If you ask credit unions what differentiates them from the competition, most will say “SERVICE!” I say. Get in line. That’s not a differentiator. Unless……you decide to define it and measure it.
Most credit unions “measure” service annually. In a survey. A random sample survey with a zillion questions.
Others I’ve spoken to measure it monthly with some kind of scale, because we like numbers. EXAMPLE: On a scale of 1 to 5, who satisfied are you with the service you get from your credit union?
I hate the word satisfied when you’re talking about “experience” being your differentiator. Satisfied means content; meets expectations. Banking is an errand. I’m satisfied if I can get in, get out, and nobody gets hurt.
I have a client who surveys each month and has an average satisfaction rating of 4.8! BUT, they are not growing. A satisfaction rating of 4.8 means YOU DON’T SUCK. So they “market” widgets and do membership “bribes” instead of asking the RIGHT question.
The Ultimate Question. “How likely are you to RECOMMEND the credit union to a friend or a colleague?” On a scale of 0 to 10? Now you’re talking. That’s a way different question. If I’m satisfied, I will probably ring in around a 7 or an 8 - what NPS calls a passive. I am satisfied but I can be easily wooed by the competition.
A loyal member will give you a 9 or a 10. These are your promoters. I’ll bet you can think of a few right now. Do you think you had more promoters 10 years ago than you do today?
A detractor will give you a score of 0 - 6. Why would someone stay with you if they can’t recommend you? We bank on inertia.
Can you even imagine measuring your bottom-line only once a year? The thought of it frightens most executives and yet that’s exactly how I feel when I hear that “service” is measured so poorly, if at all.
The Filene Research Institute completed a benchmark study of credit unions and NPS. Many are reading the report and “adding” the question to their survey. This is NOT how you do Net Promoter Score.
The wonderful thing that NPS can bring to our industry is a metric that is used consistently - like ROA - so we have valid peer group data. Up until now we’ve been measuring our service with different rulers. That’s why it’s been so hard to define and to manage.
The real value of NPS is the follow-up question. “Why?” Why did you answer the way you did? In other words why WOULD you recommend us or why WOULDN’T you recommend us? Another client of mine jsut completed their first round of NPS. The feedback they got from this question was invaluable. This is the key to loyalty economics.
Do you know what YOUR score is?
Recent Comments