First get good publicity; then make use of it

An important duty of any trade association is to get good exposure in the mainstream media for the industry they represent. In recent months there has been an increasing number of credit-union friendly mentions in the general interest media as a result of CUNA's and NAFCU's stepped up PR efforts. Included in these are some solid letters to the editor from CUNA CEO Dan Mica in Time Magazine, the American Banker, and USA Today. However, the June issue of Consumer Reports is the most recent example of favorable national credit union publicity. Its editors apparently decided to go beyond their usual concentration on determining who makes the best lawnmowers, house paint, insect repellent, TV sets, and refrigerators, to take a close look at financial institutions from a consumer value and acceptance viewpoint. Some observers feel this is a rather unusual departure for Consumer Reports and that they may have strayed outside their long-standing areas of expertise by attempting to position themselves as experts in determining the best bang for the buck among financial services. Testing toasters is one thing. Testing institutions that once gave toasters away for opening new accounts is something quite different. But they did it. And credit union interests appear to be the benefactor of this editorial departure. In fact, the CU trades and other credit union supporters are actually crowing about the reported findings. After reading various press reports on the consumer survey that formed the basis for the Consumer Reports editorial coverage, I bought the magazine and read the out-of-character piece. It didn't take long to see firsthand why credit union readers were happy with this latest national publicity, but banking readers not nearly so. The main thing I learned is that a PR savvy trade group not only generates positive publicity, but has the skill to make the most out of national coverage of their industry that drops out of the heavens. Credit union public relations practitioners quickly put a positive spin on the good news in Consumer Reports even before banking interests could downplay the same survey results. Each side understandably picks and chooses which survey facts to quote and emphasize very carefully. Here's some of what the article said from a credit union viewpoint (CUNA's NEWSWATCH, May 15, 2000): "Credit unions are better than big banks at providing high-quality financial services, Consumer Reports concludes. In all, 88% of credit union members say they are either `completely satisfied' or `very satisfied' with their credit union service. Only 63% of bank customers were satisfied with their bank." The CUNA weekly newsletter went on to quote CUNA CEO Dan Mica: "Consumer Reports is one of the most respected sources for information in America. It makes a difference in where consumers shop and what they buy, and that includes financial services." Here's what the article said from a bankers' perspective (American Banker, May 10, 2000): "While a consumer magazine would naturally zero in on where to get things on the cheap, banking industry executives obviously have different agendas-finding wealthy customers, for example, or cross-selling products." Said Wells Fargo chairman and CEO, Richard Kovacevich: "If you come to us just for a checking account, you're not going to get the best deal." These comments appeared in that same article: "The banks themselves were skeptical about the results. Said one spokesman for a bank that came out on the low end of the ranking: `We were near the top in a ranking three weeks ago by Smart Money magazine. So what are we to make of that?'" CUNA's Mica called the report a "major event for the credit union movement." The American Banker article concluded with this: "Some consultants warned that the survey was not scientific and that those who participated may have done so because they had a gripe. `Consumer Reports matters because it's a very well-known brand,' said Mr. Wendel of Financial Institutions Consulting. They are known as objective, but this is not the same kind of analysis as their product analysis." My own take on the Consumer Reports survey and resulting report in its June issue is that the average reader will come away with the impression that credit unions are a good deal, even if they are not members of one, or even all that familiar with credit unions. The average consumer today has the perception that big banks don't really care much about the consumer. Doing the megadeal and making buckets of money for CEOs and stockholders is job number one in the eyes of the typical retail customer. This report reinforces that perception and in doing so, presents credit unions in a very favorable light by comparison. What will probably stick most with the magazine's 4.3 million readers, especially the 14,000 surveyed for the report, is that credit unions give a better deal to the little guy than banks, especially big banks. Also, that the overall consumer satisfaction level for credit unions is considerably higher than that of banks. As credit unions continue to garner positive publicity, individual credit unions have a golden opportunity to take advantage of the good news as part of their ongoing marketing efforts. But, a simple mention in the credit union newsletter of the Consumer Reports piece, for example, weeks from now isn't the answer. Instead, why not purchase copies of the June issue of Consumer Reports for every one of the credit union's volunteers and staff? Why not make copies available in the main office and branch lobbies? Why not send copies to all select employee groups (SEGs) with a cover note to reinforce their loyalty and support of the credit union? And why not make sure opinion leaders important to the credit union receive a personal copy. Undoubtedly the various state and national credit union trade groups are doing something similar? Good CU publicity is only as good as the good use credit unions make of it! Comments? Call 1-800-345-9936, Ext. 15, or Fax 561-683-8514, or E-mail mwelch@cutimes.com.