Comments on: Don’t get whipped by narrow focus

By: Horace

Horace — Tue, 24 Jun 2008 20:06:14 +0000

“The company [who sells drills] should look deeper and see that it actually sell holes.”

That’s kind of profound.

By: Anthony Demangon

Anthony Demangon — Wed, 11 Jun 2008 18:16:20 +0000

Great post. Tom Glatt always mentions this: where did Union Pacific mess up? It saw itself as a railroad, rather than a transportation company.

Credit unions are financial cooperatives. I always think that what we offer is helping members with their financial needs, whatever those are and however they want and/or ned them. But it should be done in a holistic way: Education. Products. Services. And knowing them and their needs almost better than they do. And they key thing is the member-ownership angle. How many people say: that’s MY dry cleaners. We have the ability to turn normal consumers into life-long devotees. (Then again, what does a compliance nerd know.)

By: Melina

Melina — Tue, 10 Jun 2008 19:18:38 +0000

Kurt just sent me this great quote from Miles Davis that applies to differentiation: “Don’t play what’s there, play what’s not there.”

That really applies to my last comment, even though it can be hard, to be great you need to step off the beaten path into the unknown and take a chance. That will help you stand out and differentiate.

By: Melina

Melina — Tue, 10 Jun 2008 19:17:18 +0000

@Mike Bartoo – I think that it is difficult to wander off the beaten path into the unknown. The “early adopters” (to use another marketing term, sorry!) are going to see that there is logic behind this differentiation strategy and follow the niche strategy. As more and more credit unions make the switch it will become a normal course of action and we will be blogging about the next best thing!

Unfortunately, as we all know, change is a slow process. It can be difficult to find the research and backup information necessary for many organizations to convince everyone that a decision will be beneficial.

By: Mike Bartoo

Mike Bartoo — Tue, 10 Jun 2008 16:29:06 +0000

Melina, CUWarrior – I agree wholeheartedly that it’s not only a great way to differentiate oneself, it may be the only way to do it. Why do you think so few CUs actually follow this course of action?

By: Melina

Melina — Mon, 09 Jun 2008 22:42:53 +0000

@credit union warrior – I see the truth in your point that some credit unions aren’t focused enough. It is ok to have a niche, and serve it better than everybody else. We learned in marketing about the importance of differentiating yourself from your competitors. Common segments are: low cost, high quality, or niche.

Credit unions are perfectly positioned to differentiate by niches because they are already set up by SEGs, unlike banks. It makes sense to learn the ins and outs of your market and be proud of who you serve and serve them better than any other provider can.

Disclaimer: I am not saying that these credit unions don’t know the ins and outs of their own markets or that they are not proud of their segments. I am using this example more as a point that focusing on a niche is a great way to differentiate oneself in the sea of competition.

By: Mike Bartoo

Mike Bartoo — Mon, 09 Jun 2008 13:18:09 +0000

In a way, it goes back to the old adage of “features vs. benefits”. It’s not about the product or its features – it’s all about how it benefits the member. Let’s face it, most financial products are commodities – even if a CU comes up with something new, it’s only a matter of days or weeks before imitations show up. But when you’re able to talk about how it improved a member’s life….THEN you’ve got something. To echo Melina’s last comment – it’s not the $300 or the $30 or the drill – it’s the hole that let the member hang their picture of the entire extended family from grandma’s 90th birthday party!

By: Credit Union Warrior

Credit Union Warrior — Sat, 07 Jun 2008 12:52:44 +0000

I think that in some cases, credit unions aren’t focused enough. Many simply try to be all things to all people. There’s no problem with finding a niche, being world class at that offering, and dominating your corner of the market. Starbucks has done it. Apple has done it with personal electronic devices.

I think you’re so wise to suggest credit unions revisit exactly what it is that members want from them. I think we’d all find that a great deal of the resources we are spending trying to improve different facets of our product/service portfolios is misplaced. Our recipe for serving members has largely been untouched for decades. While that’s comforting to some, I’m sure, maybe it’s time we really consider cooking up a better one? One that meets current needs, not antiquated ones.

By: Melina

Melina — Thu, 05 Jun 2008 17:04:00 +0000

@brent – I’m glad that someone else is sharing the same wisdom! You make a good point that people really just want to have more and more stuff. It seems the fancier the better for most people!

It’s interesting how money has become associated with value these days. Some people would rather pay $300 for a drill instead of $30 because they think it will do the job better, but a hole is really just a hole.

Do you think there is a lesson to be learned there for credit unions and the mind of the consumer?

By: Jamie Chase

Jamie Chase — Wed, 04 Jun 2008 22:45:48 +0000

Melina,
You are wise beyond your years. Your ability to learn and apply life lessons is profound.