Twitter’s get out of jail free card

The premise behind Twitter is telling people what you’re doing. I’m new to the Twitter-sphere and still figuring out what it means to me, let alone the credit union movement.

Chris Brogan’s blog about it grabbed my attention and didn’t let go.

 

College Student Twitters Arrest in Egypt April 16, 2008 “Arrested.” That’s what 29-year-old James Karl Buck sent from his phone out to the world via Twitter the other day. It seems Buck was snapping photos of a demonstration, and police collected him up and put him in jail. It turns out that his message on Twitter caused his network of friends to reach out, call around, and get people mobilized to help. There’s tons more to the story. What’s important about this story? Everything. Twitter has a powerful ability to move people to action, to deliver help where it’s needed, and more. If a messaging platform can free a man from prison, what else can it do for YOU?

 

My colleague Kurt Jacobson and I were talking about RSS feeds being an attractive nuisance at times. Heck, even email can eat time, which may explain why the wealthiest man in the world, Warren Buffett, doesn’t use it. But I’m seeing real possibilities and results with Twitter, new relationships, new readers of our blog and an opportunity to mobilize people should we need to.

Twitter-licious uses:

CU Peer to Peer

• When credit union taxation attacks strike: All credit union professionals and volunteers could receive real time mobilization updates sent to their mobile phones from CUNA. Can you imagine the utility this would have provided during HR1151?

Board Members to Member

• Engaging members in credit union decisions: How do members really experience their ownership of the credit union? Does banking at a credit union often feel like banking at a bank?

  Imagine a credit union board of directors using Twitter to communicate with their membership in real time. “Evaluating plans to build a branch on XYZ Street,” or “Looking at how we can help our members save their homes during the mortgage crisis.” How would members having the chance to reply make them feel? Engaged! Think they’d tell their friends that they get to help shape the credit union? Yes! The credit union movement touts member direction and the idea that members call the shots as our big difference. Does Twitter provide a relevant means to turn this poetry into philosophy into action?

Member to Member

• So your credit union has proposed converting to a mutual bank and you are one member who is not interested in giving your assets away without a fight, because you understand the credit union difference. But how do you fight the conversion? Most likely the board members and CEO who will receive lucrative stock options aren’t likely to approve your request for money to print opposition materials. By using Twitter and inviting other credit union members to join, you’ve instantly mobilized your community without spending a penny. You can use your cell phone and so can they to send updates and call each other to action.

Twitter back at me or leave a comment…

 

You mean money doesn’t grow on trees?

Have you walked into a high school classroom lately? It’s like you’ve stepped into another world, not just another building! The spirit, the energy, the texting – it’s contagious. Well, maybe not the texting. I still prefer face-to-face, over-the-phone or email communication. But the spirit and energy of teenagers is unmistakable.

The trick is to tap into that energy and get them to focus on positive and useful matters, like financial smarts. How do you get a bunch of smart, tech-savvy, me-me-me, now-now-now, environmentally-conscious teens with short attention spans to buy into financial literacy? (FYI, all of those adjectives came from an informal poll of my co-workers!)

It’s easy. Just bring it to their level.

Writing checks? That’s old school. Don’t spend a lot of time on this ancient practice. When I asked my 14-year-old niece if she’d rather pay for something with a check or a debit card, I already knew the answer – debit card. What I didn’t know was why. When I asked, I was surprised by her answer. I expected to hear something about how much easier or faster the debit card is. Instead, she said, “Because I don’t have to write.” Today’s teens aren’t writing; they’re typing or texting. So, talk to students about debit cards and show them how they can track their debit card purchases and ATM withdrawals and deposits with quick shorthand abbreviations.

Forget preachin’ about the money they’ll need in their golden years. They can’t even think past this week, let alone 50 years down the road. Show them the rule of 72. Let them see how quickly they can double their money if they start right now. They’ll see that their first car doesn’t have to be a far-off dream, but a reality if they play their cards right.

And while you’re chattin’ about cars, show them how to shop around for interest rates. Tell them why they should compare auto loan rates just as they’d compare the prices of iPods, prom dresses or skateboards.

The key is to speak their language. Give examples they can actually relate to. Take advantage of their energy rather than fight against it. If you’re sincere and respectful, they’ll get it.

Jodi Jones is the Public Relations Officer for the Mountain America Credit Union and a board member of the Utah Jump$tart Coalition.

 

Did you miss the shift?

I’m a big fan of the research and consumer perspectives from The Hartman Group. Food is their specialty, but their ideas can be applied to credit unions.

For example, look at their recent comparison of traditional culture, passed down from our teachers and authorities, to the consumer culture, which bubbled up and is shaping the way younger credit union prospects receive our message. We must become aware of the differences to change with the times.

Traditional Culture	Consumer Culture
Strong parental and intergenerational authority	Families run as democracies
Clear societal roles (i.e., dad, worker)	Less regard for elders
Belief in rules, hierarchies	Multiple, transient value systems
Belief in science, objectivity	[The magazine did not list a consumer culture element in this section]
Top-down authority	Skeptical of authority systems
Class-based lifestyles	Lifestyle identities replace class identity
Focus on basic needs	Focus on experience and desires rather than needs
Production drives economy	Consumption drives economy
Sober and serious	Playful, ironic, cynical
Source: The Hartman Group	and Grocery Headquarters Magazine

 

If you agree with The Hartman Group’s shift, what beliefs about credit union marketing, communications and operations should we hold dear? What should we let go? What should we adopt?

In our financial literacy efforts, are credit unions coming off as a “strong parental” voice or are our programs featuring peers speaking to peers like the television show Biz Kid$? How do we structure financial literacy materials with messages reflecting our new knowledge that families run as democracies?

Our credit unions re-appoint long-standing board members who are hard-working, respected, and often retired. Do uncontested elections leading to appointments work with a culture that values democracy? Does the image of the tenured board member work with a consumer culture that has less regard for sober and serious elders and prefers to be playful, ironic and cynical? Target stores’ marketing is aimed at a young consumer with advertising that is playful and ironic, but it attracts shoppers young and old. Could it be that reflecting the current social norms of our consumer culture works? Is it possible that the advertising reflecting the cultural norm makes people comfortable while also being edgy and enticing them to shop at the store?

The credit union marketing and operations archtype is that we have to be traditional and rule-based, because people have to trust us with their money. Yes, they do, but trust in a not-for-profit financial institution a given. Do we honestly think that in the back of their minds consumers who spend thousands online don’t trust credit unions with their money?

Do we traditionally focus on basic needs like car loans, savings and checking? Of course. But could we convey the information to consumers in a way that reflects their lifestyles, experience and desires…real desires? That 21-year prospect may lust after a turbocharged 2008 Cobalt and barely make payments. Is he a good member? Wouldn’t he also benefit from peer-to-peer financial literacy? Wouldn’t he be more likely to listen to someone like him than an authority figure telling him that he’s making bad choices?

Let’s not start our marketing discussion with, “Our best member is…” and ignore who tomorrow’s best member is.

Do we believe that prospects will flock to us because we tell them logically that they will become owners/members and they have a say in what we deliver?

We’ve had the pleasure of working with Seattle Metropolitan Credit Union, and they get the shift from traditional culture to consumer culture.

They encourage young members to vote on everything from the design of their debit card to the causes Seattle Metro should donate to. Their “Speak” and “Seven Principles” programs don’t disrespect traditional culture, but definitely take root in the consumer principles articulated by Hartman.

 

 

Why the CU Skeptic is right

Last week the CU Skeptic’s blog post was smart. It was poignant and a reminder that innovation and serving consumers should be far more important to credit unions than fighting banker attacks. Thank you, Skeptic for encouraging credit unions to look to their mission for operations and marketing guidance.

A step beyond that, I encourage the CU Skeptic to hold off on revealing his identity. His blog is getting results. Can you imagine the cultural change if the CU Skeptic was featured as a keynote speaker at a CUNA or state league event? It might be eye opening for CEOs and board members to participate in a discussion facilitated by a skeptic with good intentions asking tough questions, behind closed doors.

Honestly, I’ve been a little wary of the CU Skeptic, which has shown in blog conversations with Tim McAlpine. However, it is not his message that concerns me, rather our response to it in a public forum (blog). This is why a conversation with the Skeptic at a trade association event is ideal. As professionals, speaking about our businesses in a public forum, we have a responsibility to protect our employers. In this case, the employers we are protecting are our credit union members- that own the credit union. Their assets are put at risk when credit union professionals make public statements that could be used by the ABA as an argument for taxation of U.S. credit unions. Many organizations have blogging policies to help employees protect themselves and their employers. If you love credit unions, then you must love the free exchange of ideas, which I do! My advocacy for using blogging policies is to help credit union professionals blog responsibly.

I would hate to see any well-intentioned credit union professional see their words used against the movement they love so much.

Blogging Policy 101

Before launching a blog, form a committee to discuss the issue of blogging and social media. By including employees from a variety of departments, such as communications, IT and legal, you will be best prepared to develop an effective model policy.

What if you don’t have a blog, but your employees post comments on other blogs?

As with any activity, employees should use judgment when engaging in online discussions such as blogs. Individuals should carefully consider how their actions might reflect upon themselves, their families or their employers.

Bloggers should:

• Know and use the company’s general conduct guidelines
• Identify and speak for themselves and use a disclaimer
• Respect copyright, fair use and financial disclosure laws
• Be personally responsible
• Protect privacy
• Protect the company’s clients and suppliers
• Respect their audience and co-workers
• Know and reference other bloggers on the site
• Check their facts and correct their mistakes
• Don’t alter others’ posts without informing them
• Use in a way to add value to the company business
• Be interesting
• Write about what they know
• Pay attention to quality of blog content

Bloggers should not:

• Disclose business performance or financial information
• Disclose confidential or proprietary information
• Pick fights

 

“What if” from the largest CU event in the world

Kurt and I returned to JayRay yesterday from a thought-provoking week at CUNA’s Government Affairs Conference (GAC), the largest credit union event in the world. I’m relieved to share that the normal fluff and peachy rhetoric, gave way to the discussion of serious issues.

They gave us something to think about:

• “Great leaders in the credit union system or elsewhere recognize reality and deal with it.” ~Gen. Colin Powell, Keynote speaker

• “The average age of a U.S. credit union member is 47.” ~Allan Kemp McMorris, CUNA’s outgoing chairman

• “CUNA was one of the first organizations to use YouTube. It may not be directed at me, but young people are watching it.” ~Dan Mica, CEO, CUNA

• “Since 2000, the average credit union membership growth has been 1.9%, barely ahead of U.S. population growth.” ~Summary from program book

• “If it wasn’t for indirect lending our membership would have shown a decrease and we all know that indirect members aren’t the best.” ~Dick Ensweiler, President and CEO, Texas Credit Union League and Chairman of CUNA’s Membership Growth Taskforce

• “Credit unions have a critical and distinct impact on the U.S. economy.” ~Gigi Hyland, Board member, NCUA

• “Every problem is an opportunity.” ~Dan Mica, At CUNA’s annual meeting during the GAC

• “I’ll never hold an active credit union board election. The members might vote off my most educated board member.” ~Anonymous CEO at Filene reception

• “If you believe in credit unions, you have to believe in the members.” ~Gigi Hyland

What if:

• Our movement valued regular board elections as giving members the opportunity to experience and talk about the credit union difference. Even if voter turnout is low, the experience empowers active community leaders and likely increases referrals.

• We recognize and deal with the knowledge that nearly every bank markets friendly service and low rates.

• The consumers we help overcome the sub-prime housing fall-out tell their friends and family about how credit unions changed their lives.

• We saw conversions from credit unions to mutual savings banks as a wake-up call that regularly held contested elections increase both board accountability to the membership and member understanding of the credit union difference. If we sent legislators to Congress every year without voting for them, how accountable would they be to us?

• We saw our aging membership problem and technology know-how as an opportunity to create an online credit union marketed to young people. With our shared branching network, the young members could be directed to local credit unions for physical branches. Could this be done as a CUSO service, like CU Match Up?

Kudos to:

• Allan Kemp McMorris, Dick Ensweiler and Dan Mica for their honest leadership about our movement’s opportunities and challenges.

• Gigi Hyland for believing in members and empowering credit unions.

• Mark Wolf of CUNA for giving us a critically needed credit union event with substance.

 

Treat people like dogs

Do pets get better service than people?

In her health care marketing blog, my coworker Shari Campbell, says, “Bailey, our beloved Golden Retriever, needs to go to the vet for her annual exam.” She knows this because the vet reminds her when to bring Bailey in and makes a reminder phone call.

Shari writes, “And because appointments are available from 7 a.m. to 7 p.m., seven days a week, Bailey the dog is always the most current member of our family when it comes to health and wellness check-ups.”

If credit unions are truly member- and prospect-focused, why do they choose to be open when everyone else is working, commonly:

Lobby hours: M-F 9:00 to 5:30
Drive-up: M-F 9:00 to 5:30
Saturday: 9:30 to 2:00

If a credit union decided to study when branch visits would best fit their members’ schedules, would they pick the hours that are available now? What if credit unions were closed Tuesday and open until seven Monday and Wednesday? That is something that can we can make a big deal about in advertising, actually being different.

 

There’s a difference?

While doing some research last week I started thinking about the credit union difference and the Generation Y audience that credit unions are striving to convert to member-owners. I am a member of this tech-savvy generation – I’m 22 – and I can honestly say that before I started working with JayRay I was pretty fuzzy on the difference between credit unions and banks.

Keep in mind that I am a member of two different credit unions and also have some accounts with a bank that, as Mike pointed out in his recent post, my parents started for me when I was about 12.

There are two possibilities here:

1. I’m one in a million and most people my age know the difference between credit unions and banks.
2. There is a disconnect and most people in the under-25 crowd have no idea that there even is a difference, let alone the specifics of it.

So I went directly to the source and surveyed two of my friends. The result was less than optimal. Both friends graduated from college and are very intelligent, well-rounded individuals.

• Melinda, who has worked in real estate for several years, said, “A credit union deals more with cars and houses and purchases where you need to get your credit checked.” She could not name one credit union, but recognized BECU when I provided the name.
• Nicole, who only has accounts with a credit union and has never used a bank, did not know the difference either! Her guess was that credit unions are owned or sponsored by companies and banks are private. She could only name BECU (her own credit union).

This result has me a little worried. In my time working with credit unions I have become a true convert. The difference is awesome – but the target audience doesn’t know or understand how beneficial it would be for them to make the switch. Or even how to take advantage of the credit union they are already a member of.

I plan to do some more research among my peers and educate them along the way, but what can the credit unions do to get the attention of this generation? Common Wealth’s Young and Free account has the right idea. What are you doing to reach this group? Have you had any success?

 

“You cannot bore people into buying your product.”

That is a quote from David Ogilvy, founder & former CEO, Ogilvy and Mather Worldwide (Ogilvy).

The same idea also appeared in The American Advertising Federation’s e-newsletter called SmartBrief.

A credit union talking to a target audience is not the most effective form of advertising – it’s a conversation with a good friend. Your friends are witty, opinionated, smart, happy or unhappy, warm and inconsistent. You love them for all they are. And they reciprocate.

So why can’t your ads be a conversation between perfectly imperfect friends?

• Why can’t we use “we” instead of “XYZ Credit Union?”
• Why don’t we end our offer with flip phrases, like “Sweet” or whatever catch phrases we use with friends?
• Why don’t we use “like,” instead of “such as?”
• Why don’t we dangle our participles in front of the world, including crotchety old Ms. Stickler, our high school English teacher?

According to American Advertising Federation, “Creativity, research, humor and honesty were the elements that served as the foundation of Ogilvy’s approach. He once said, ‘I learned to sell, which means listening more than you talk, knowing your product inside out, having a sense of humor and telling the truth.’”

Why does so much advertising try to bore people into buying?

 

The Young and the Relevant

The words “credit” and “union” aren’t very appealing by themselves, but when you put them together, well, they don’t get any better. This may just be the view of someone my age – I’m 26. But aren’t most credit unions in the country trying to target the under-30 demographic?

The average age of the credit union member is increasing and is somewhere in the late 40s right now. If this number keeps rising the future of credit unions begins to look bleak. Credit unions across the country know this, so last year Filene Research Institute put together a group of 30 people in the credit union industry under age 30 to help address the problem. I was lucky enough to be picked to participate.

The main objective of the 30 Under 30 group is to determine how credit unions can be more relevant to young adults, from recruiting for employment to attracting new members. No easy task for any financial institution. When you’re 22 saving money is the last thing on your mind. Shoot, you don’t even have any money to save. What you probably do have is debt – student loans and credit cards – and a checking account at a conglomerate bank your parents helped you open when you were 14.

I’ve just started on this year-long adventure, but one of the most striking discoveries is how the 30 Under 30 crew came to work in the credit union industry. For most everyone, it was completely by chance. The most common story is, “I graduated from college, I needed a job, XYZ credit union was looking for someone, and so I applied and was hired.” This is somewhat true for me as well. While it’s worked out for us, credit unions should do more to steer young prospects to the industry rather than let them stumble into it. That’s one big thing the 30 Under 30 group is trying to address.

We know this is a huge challenge. And in thinking about how credit unions can attract young members, I have started to wonder … how did current employees and members hear about their beloved credit unions?  Friends?  Family? Work?  Please share your stories with the rest of us. 

Mike Escudero is the Marketing Manager at Seattle Metropolotan Credit Union.

 

Ohio Zenith or Bust!

Hello Expedia.com, Kurt and I are busy buying tickets for a few JayRay road trips. OK, Melina bought them for us.

First stop, CUNA’s GAC next month; followed immediately by a trip to the Ohio Credit Union System. Our friends Josh Reams and Becky Hart invited us to speak at their fabulous Zenith 08 Convention. The inside scoop on Ohio’s CU trade association: The big boss, Paul Mercer, runs an organization committed to the roots of the movement. It would be hard not to with Bill Herring, son of Louise McCarren Herring, on your board of directors. Bill joked about this when he spoke to the Island Wood inaugural class of Credit Union Development Educators. Bill’s mom is considered one of the pioneers of the credit union movement in the United States and is responsible for establishing more than 500 credit unions throughout the nation.

Speaking of roots I just can’t wait to get back to see my mom, eat at Bob Evans and maybe squeeze in a visit to my alma mater, Dover Phila Credit Union. You thought I was going to say OSU, didn’t you?  (Yes, Go Bucks, too!)

Adding to the excitement, Kurt and I will be joined by my dear friend Carol Schillios. Her Here Je credit union microfinance project and art-co-op in Mali, West Africa inspired my friends and I to start our own art co-op I in Tacoma, WA. We’ve had our doors open for two months and I’m currently helping Carol plan a trip in June for other credit union leaders to visit Here Je. If you are interested, email me. The last time I coordinated this for Carol, a few of my congressional aide friends joined us and we kept an online journal hosted by The World Trade Center of our home city. When we returned, the group delivered a presentation on cooperatives and credit unions at the University of Washington, Tacoma with Congressman Adam Smith.

 This Ohio trip represents the Zenith of my cooperative roots and my hopes to contribute to credit unions’ ability to reduce global poverty and empower the people who matter most to us in our own hometowns.