MANCHESTER, Mo. – Although a recent survey finds that banks arecommitted to building more branches, Charlene Stern, chiefexperience officer for design/build/branding firm NewGround saysthe time is now for credit unions to capitalize on “bankers'marketing malaise.” “The current frenzy of branch-building isrunning ahead of some banks' strategies for customer acquisitionand retention,” said Stern. “They are so busy trying to play catchup since they realized they were wrong to cut back on branches inthe `80s and `90s that many are just believing `if you build itthey will come'-and that just doesn't work. There is no end ofopportunity for credit unions to build a retail message that reallyconnects with their members.” Stern says credit unions may besurprised to learn that the retail message should not focus on CUs'not-for-profit status or trying to “out-community” the competitionbecause it can result in a generic “me-too” branding battle. “We'vedone so many focus groups across the country and the misperceptionamong consumers that comes up over and over again is that if afinancial institution is non-profit it is not sophisticated enoughto handle today's more complex needs,” said Stern. “It is an idealthat doesn't hold up today as much as it did when credit unionswere first founded. The majority of members hold jobs in profitmaking enterprises and they want to be reassured their credit unionknows how to handle their money profitably and help them do itwell. Credit unions are short changing members every day if themember doesn't also know about its culture, the variety of servicesoffered or that a better deal can be found at a credit union.”According to Stern, credit unions are the only provider in themarketplace that can claim they are unbiased because each member isessentially a “shareholder.” “Members don't care that a creditunion is not-for-profit; they want a financial institution that isan unbiased consumer advocate, that has a culture focused on whatis best for the customer, and will help him or her have a betterfinancial outcome,” said Stern. “The reality is that no matter howmany branches banks build, if they don't have that culture it won'tmake a difference.” While studies show that branches are key tomember acquisition and retention, many financial institutions aretraditional in their retail strategy. For credit unions to stayahead of the game there must be a viable retail culture in place ordeveloped. Stern adds that before credit unions jump on the branchbuilding bandwagon they should first assess their current cultureand brand including their name, and make sure it effectivelycommunicates in a very personal deep way how important the creditunion can be to their members' lives. In addition, employees cannotbe reduced to just transactional “burger flippers” – they, likeconsumers, want to find meaning in their jobs. “Redefine yourretail strategy before a shovel even hits the ground,” said Stern.“Branch expansion is difficult to align with brand expansion, andnew spaces require brand and cultural consistency that reaches fromthe color of the walls to the first words out of the teller'smouth. The interior must be designed to energize employees andmembers alike. It is about building on the synergy of that member'sfirst great experience in your branch.”[email protected]