This is why I love the blog-o-sphere. It gets my heart pumping in the morning so I don’t have to drink as much coffee. Thank you Jeffry Pilcher and Sarah Cooke. Seems they both followed Ron Shevlin’s advice on How to Generate Blog Comments – PPO (piss people off!)
The discussion is around whether or not the moniker “credit union” hurts us or helps us. It’s a great discussion to be sure.
So, what’s in a name? According to Alyce Cornyn Selby, author of the book that asks that question, pretty damn much everything. When you name a child – it’s probably one of the most important moments of your life. Luckily you have 9 months to think about it. So, let’s say the child disappoints you – change their name! To Buster. That’ll show him.
I’ve been pretty outspoken around the subject of name changes. Especially when a credit union takes a venerable class of professionals like teachers or healthcare and turns them into Generico CU.
But now it’s gone too far. The debate that is currently raging on attacks the “credit union” brand. I’ll admit it – I’ve never liked those two words. Credit. Union. But hey, it wasn’t my baby to name and now that he’s turned 100 years old, I say we show him some respect.
Our category. Our legal entity. Our history, heritage, reputation, and dare I say DIFFERENTIATOR is the fact that we are a member owned financial cooperative that is called a credit union.
If anyone should be clamoring to change their category name it should be banks. Banks are synonymous with failure, greed, taxpayer bailouts, corruption – pretty much bringing our economy to its knees!
I just think we need to nip this conversation in the bud, as it were.
Years ago I had the pleasure of working with Financial Resources Federal Credit Union. Their original sponsor (and still primary SEG) is Johnson & Johnson. They were never allowed to use the J&J brand, so they chose a rather benign name. In fact, very few members even used the name in conversation. Instead they referred to it as “their credit union” or, and this was my favorite “J&J’s credit union.” There was great love for their club. And so these members marketed FOR the credit union. They would tell their family members they had to join their credit union.
Two key words in there – “join” and “their.” You don’t join a bank.
The argument on the CU Times and Financial Brand blogs is centered around public confusion. My favorite comment (and I mean this felt like a mainlined double espresso when I read it): “I agree with banishing the term “join a credit union” – it is misleading to the public.” Yikes. Just typing that made my hands shake again.
In his groundbreaking new book “Flip the Funnel” Joseph Jaffe asks this question: “What if we got it all wrong? On average 80%-90% of most marketing budgets are aimed at attracting a complete stranger. Offering iPods, cash, and better rates than they will give their loyal existing members
If you think about it, shouldn’t we be spending more money against qualified prospective buyers versus shots in the dark at bagging a random stranger? Of course we should. It’s a complete no-brainer.”
Fight the real enemy people. Give your field of membership a reason to care. And if you want to be a bank – go covert.
The 2020 Vision of Marketing 
9 comments
Comments feed for this article
April 15, 2010 at 7:22 am
Michael Hostetler
The Credit Union difference that we all like to believe is present and a differentiator for our institutions does not come from our name. This difference comes in the difference that we make in our members’ lives. What’s in a name is not as important as in what is in an action. Take care of your members. Do the small things right, and everything else will fall into place.
April 15, 2010 at 7:46 am
Dean Wilson
Well said, but unfortunatly currently we do not possess the national leadership to see beyond our own movement monicker and recognize it shouldn’t be about us and our marriage to an outdated movement name……..but what the consumer perceives in the marketplace.
Take a look at the UK and you will see a fantastic model that is simply called “Cooperatives” which not only galvanizes amongst different types of CU’s but different types of cooperative industries, food coop’s, farming coops etc. With a stylized signage amongst the different industries which allows for brand recognition of the name Cooperative but a color scheme which direct you to a financial coop, versus another coop.
The difference here would be the fact we would be able to combine 3-8 smaller movements, industries into one rather moderatley sized lobbying effort in order to get our message accross. Our current failure as an industry has us headed towards the seperation of large vs. small and the push back from homogenization. Last I checked to the consumer a checking is a checking is a checking is a share draft is a share draft…..the brand differentiatior needs to be built aroudn the service, pricing and structure.
Times are a changing in many a significant way these days and some times big change may be what we need in order to register amongst the public. Move Your Money Movement was a time for us to hit a national marketing campaign but again as a fractured movement pointing fingers in all directions we missed the boat….and potentially the sea.
Sorry about the verbal diarreahea
April 15, 2010 at 7:59 am
Denise Wymore
Dean,
I totally agree. One of the saddest moments of all this last year – when Ondine Irving was asked where consumers can go to find a credit union in their area to join? You’d think CUNA would be the obvious resource – but you’re only there if you belong to your state league, etc. NCUA? Nope. Privately insured CUs are not listed. Glaring example of the fragmentation of our industry.
So I argue that the credit union name is a choice – and a commitment. But I agree – your brand is not your name, it is your reputation.
April 15, 2010 at 8:03 am
Marlo Hirl
I couldn’t agree with you more, Denise. Many people may not like their own name, but its your identity, so embrace it! I cringe when I hear of CUs removing “credit union” from their name. Why not put that energy into educating people about the benefits of a credit union than take a lazy approach in hopes it will fix something that could certainly be a huge opportunity to differentiate yourself? I know, you already said all that, but I got on a roll. 🙂
April 15, 2010 at 9:25 am
Diane Schultz
I agree Denise.
To put it into another context, I had no intentions of ever joining Facebook, until my sister recommended it to me. One word-of-mouth endorsement from her was all I needed and within one hour I was ‘friending’ her. Facebook was easy to join and the settings were easy to customize; but more importantly, the feeling of “connection” keeps me going back to it every day. And I would have joined it no matter what its name was because I was encouraged to do so by someone I trust and care about.
Keep the ‘Credit Union’ and focus on becoming easy to join, with products and services that are easy to customize; a financial institution that you WANT to do business with because the connection keeps you coming back.
April 15, 2010 at 9:59 am
Gene Blishen
Here is what is about to happen in Canada. There is federal legislation pending to move credit unions from a provincial to a federal level. Now the question is what will they be called: credit union, federal credit union, co-operative bank. Given the new jurisidiction they can’ be called credit union, they aren’t. i.e. ‘Sorry Mr. Member but at this credit union you have an unlimited guarantee but over there at that credit union it is only for $100,000 – welcome to the confused market place) But a federal credit union would be more palatable for the owners (members) to vote for moving a CU to a FCU. Smoke and glass here. What they will become is a co-operative bank, period.
So now we have some clear and defined definitions but will the definitions become transparent enough for individuals to understand the difference? Maybe it takes something like this to happen before we get energized enough to speak of the relevance of who we are in today’s marketplace.
April 15, 2010 at 3:22 pm
shari storm
I haven’t thought about Alyce Cornyn Selby in years. I saw her speak at a Credit Association of Washington meeting over 15 years ago. I loved her and remember sitting in the audience when she said, “All successful people have one thing in common – they love their name.” It hit me like lightening. I love my name! I will be successful!
It wasn’t until I was about ten years older and less naive, that I realized everyone likes the sound of their own name.
I realize that comment has little, if nothing to do with the debate, but I thought it was funny.
Preach on sister.
April 16, 2010 at 6:44 am
Denise Wymore
@Shari – Alyce is one of the best speakers I’ve ever seen. I’m a huge fan. Have read all of her books. Thanks for your comment.
April 20, 2010 at 7:15 am
Thomas B
Denise: I so totally agree. This often reminds me of IKEA and their utility cart that they created called the “Fartfull”. Yes, I worked at IKEA in the glorious “Fartfull” days. Not a day went by when an IKEA employee did not get a request to see the “Fartfull”. Trust me, not a day went by when I wanted to give them a “Fartfull”.
We should look at the “banana peel” that IKEA stepped on when looking to change the name of the credit union. People get so wrapped on the name, then a few years later, we are told that the words “credit” and “union” confuse people. So, with that you are left with that one name or God forbid many names to sell who we are…Some times, that leads us to a “crapfull” of confusion.
So, when you are sitting in your board room, listening to ancient board members tell you why you have to call the credit union “blah, blah, blah”, whip out a “Fartfull” story and let them think about that for a minute.
I’m just sayin’
Thomas