"One advantage credit unions have that I've seen is their ability to position the strength of the credit union-relationships and personalized service. It's hard for a large bank to get to know their customers, but credit unions are really going to survive and thrive on that personal connection.

"I walk in and hear, `Hi, Tony, how are you doing?' That gal here at my credit union in Michigan knows my name. That may seem like common sense, but it's great customer service. It's powerful."

Rubleski also feels credit unions are very good at positioning themselves as membership-driven rather than profit-oriented. He applauds the fact they are moving beyond traditional field of membership boundaries and becoming skilled at getting that "y'all come back" message out.

But when it comes to assuming member loyalty, that's a problem, he says.

"Loyalty is an undated term," Rubleski says. "I don't mean that negatively. But you can't take loyalty for granted. What's happening is people have so many choices. The great thing about capitalism in America is it makes competition good. But it hurts loyalty because people know multiple banks and credit unions are lined up to accept their business."

The biggest factor in customer or member loyalty, he continues, is the front-line employee. How does that employee respond when the member has a legitimate concern or question? Too often the front-line person is not empowered to help. The member walks out, never complains, and takes all their business to a financial institution down the road. One moment at the teller line or the drive-through can destroy 10 or 15 years of good will and solid repeat business, Rubleski warns. He describes consumers today as incredibly starved for time, spoiled as consumers, and bombarded with marketing messages. So what to do? Offer the high-touch that credit unions often talk about. Hold customer appreciation days with perhaps a drawing for a prize, Rubleski suggests. Reward members for referring relatives or friends. Thank them for their business. Send them a note or a gift certificate when they take out another auto loan or a CD.

When Goliath Bank comes to town, "Immediately increase the amount of contact with your existing members," Rubleski advises. "Don't lose members, your loyal clientele. When you have a large competitor, they will try some very aggressive tactics to attract your members. They may offer $100 or a free one-night getaway when you open a checking account.

"The best way to counter that is a direct shot back between their eyes. Announce that during May or June, for example, you'll honor or match any competitor's offer."

He also likes what he terms guerilla marketing techniques. He applauds the idea of credit unions becoming involved in their communities and encouraging their members to get involved.

Rubleski figures credit unions are also on the right track with their focus on cross-selling.

"Cross-selling is going to be your bread and butter," he declares. "The more hooks you have the more difficult it is for the member to disconnect from you. I'll give you an example. I have my business checking account at the credit union where I have my personal checking account. I have online bill payment. I can move money between accounts on the Internet. I love the convenience and time savings. It would be very difficult to move away."

When he recently spoke to a Michigan Retailers Association conference, Rubleski put it this way:

"Defend your customers like a shepherd or cowboy defends his herd from wolves and poachers-because that's what your competitors are." [email protected]