Differentiator - the real definition….

“Something your competition is not likely to copy.”

In the world of R & D (rip-off and duplicate) it’s becoming harder and harder to differentiate ourselves from the competition. Credit unions are not as “sharing” as they once were for fear of R & D. But if you did something that your competition is NOT likely to copy - then you should shout it to the world.

Such is the case of Greater Nevada’s newest branch (as seen in CU Journal online):

Members of Greater Nevada CU may be brought back to a different era when they visit the credit union’s newest branch here-with a miniature grain silo as its entrance and the barn-shaped main lobby.

Tucson Old Pueblo Credit Union built a drive-up window for fire trucks! (their founding members)

Umpqua Bank brews their own blend of coffee - the Umpqua Blend.

What is YOUR credit union doing to differentiate themselves from the competition (which now includes other credit unions)?

Definition?

Sub-prime
Underserved
Courtesy pay.
Pay Day Lending.

I’ve only been with credit unions since 1980. I worked for a teachers credit union, grocery store co-op, government employees and the high tech industry. They had a common bond and joined the credit union to pool their resources so they could get lower rates on loans and higher rates on deposits.

We called them when they were about to bounce a check (courtesy pay).
We encouraged them to apply for a share secured loan for emergencies (pay day lending).
We required a 20% down payment on a new car loan (sub-prime).
We created special savings programs, like the Teachers Depsoit Fund (underserved).

We had no competition.

So, what happened? How did the definitions change so dramatically?

My name in lights….

As a follow-up to my blog post AVIS tried harder to lose my business and it HERTZ - this greeted me today at the Minneapolis Airport! The trunk was open, keys in the ignition, map on the seat……

I love getting Hertzed.

PS - Technical difficulties with WordPress. I cannot upload the photo — anyone, anyone???

Bad Profits and how the NCUA is protecting us from them.

According to Fred Reichheld, the Loyalty Economics guru, this is what a “bad profit” can do to your business:

Consider those resentful overage and usage fees from your cell phone supplier, or those plans that manipulate you into buying more minutes than you need. These practices generate bad profits. Whenever a customer feels deceived, coerced, or disrespected, then earnings from that customer are bad - they come at the customer’s expense. Bad profits convert customers into detractors who blacken a firm’s reputation and choke off a company’s best opportunity for true growth, the kind of growth that is both profitable and sustainable. The pursuit of bad profits alienates customers and demoralizes employees. Good profits come from satisfied customers who not only provide repeat business but bring new customers to the company.

And this just in…..

WASHINGTON – NCUA and banking regulators today will propose new rules barring certain unfair credit card practices and setting new requirements on overdraft protection programs, including allowing members to opt out of such programs, also known as bounce protection.

The proposal would prohibit a federal credit union from imposing an overdraft protection fee unless the member has specifically agreed to participate, or “opt-in” to the program.

Enough said….