MADISON, Wis. — The long-running industry dialogue on creation and feasibility of a credit union national brand took center stage last month with release of a much-anticipated, 62-page white paper prepared by CUNA's Marketing and Business Development Council.

The document, entitled, “A National Brand for Credit Unions: A compendium of opinions about a national brand for the credit union industry,” contained diverse and often starkly conflicting views on whether, if, and how CUs should proceed with a more recognizable profile.

“Our intent in producing this paper was not to advocate or discourage a national branding campaign but rather to educate people on the multitude of issues that surround the topic both the pro's and the con's,” explained Michael Weber, chairman of the CUNA panel and vice president of marketing and public relations at Dupaco Community CU, Dubuque, Iowa.

Indeed, the report contains wide-ranging opinions of consultants and marketing practitioners from both big and small CUs, state leagues, and academia as well as an historical perspective on CU branding dating back to the 1920s “little man with the umbrella.”

The report also highlights successful international branding among CUs and comparisons with other industries or companies like the National Association of Realtors, McDonalds, and Microsoft.

“Should credit unions develop and promote a national brand? Absolutely, unequivocally, yes,” wrote Randy Harrington, CEO of Extreme Arts and Sciences, in Eugene, Ore., who quickly added, “Will they? No, not a chance unless there is a significant sea change in the leadership vision of the movement.”

Also quoted was Rob Kimmett, senior vice president of marketing at the Massachusetts Credit Union League, suggesting that developing a national brand is a much too daunting a task since it may be “impossible” to develop a single compelling brand message.

While CUs share a “common last name” and many of the same attributes and values, it still is not a brand and does not meet scholarly brand definitions, said Kimmett arguing that consumers rely on seeing common and consistent factors within products or services. Kimmett instead urged CUs to build their own strong brands by emphasizing a “powerful member experience.”

Neighborhood CU (Dallas) Mark Arnold took a different tack regarding the urgency of a national brand, stating CUs “need to explain two things to non-members: first, our values and second, our value as a partner in building the financial health of the individual and the household.”

Other CU executives mentioned in the report lamented the mystery factor about the lack of awareness or existence of CUs in the U.S. economy.

“Studies conducted by the California and Nevada leagues clearly identify the lack of awareness, misinformation, and disinterest regarding credit unions that is prevalent among consumers,” said the California and Nevada leagues President/CEO Bill Cheney.

The report cites the rationale and experience of the many state league advocacy programs underway as well as CUNA's own recent experience with “America's Credit Unions-Where People are Worth More than Money” and “The Little Guy.”

Kevin Foster-Keddie, president of Washington State Employees CU of Olympia, said in the report that CUs should be taking better advantage of their “huge trust rating.”

“He points out that one of the biggest issues for consumers is fear–fear of identity theft, fear of getting ripped off,” the report read, adding that Foster-Keddie said fear remains a “hot button.” Thus, the message needs to be conveyed that CUs “can protect you from bad things,” Foster-Keddie said.

“It's a timely message and one that can be used broadly,” he said.

On that score, a Canadian consultant who was not part of the CUNA Marketing Council white paper but who played a key role in creating the existing CUNA star logo and “People Worth More Than Money” message agreed the fear issue is more pressing today in light of the subprime crisis.

“The economy has caused consumers to be more nervous than usual and so the idea of branding credit unions as an institution you can trust seems huge right now,” said Silk Questo, president of Malahat Group of Vancouver, B.C.

Consumers “unsure about where to turn” should be directed through a brand to CUs, she advocated.

Two other consultants, Washington, D.C.-based Paul and Mary Lucas, who are quoted in the report, stress that a positive national brand simply translates into “a higher overall dollar value of the institution.”

In the case of CUs establishing a brand separate “and in some ways superior” to banks, it simplifies CU marketing at the regional and local levels, according to the Lucases.

“Credit unions with small ad budgets have the almost insurmountable task of trying to educate prospects about what credit unions are and how they are different or better than banks, while also selling specific products and services,” the Lucases said.

With a better understanding of the value of CU membership, regional and local CUs can focus their ad message “on more direct retail messages designed to sell products and services,” the duo said. Also contributing to a large section of the report were authors Dick Ratke and Lucy Harr, partners in Fourth Lake Communications of Madison, who reviewed various state and national branding programs.

In providing background on how the white paper was developed Weber, the CUNA Marketing Council chairman, said the “critical” need for such a document became apparent a year ago during an open forum at the group's annual conference. That's because the industry, concluded the Iowa marketer, “seemingly has been in the midst of an identity crisis.”

CUNA said it has invited all of the report authors to participate in what it expects will be a lively discussion of the topic at the Marketing Council's annual conference March 16-19 in Nashville. The report is free to the 1,000 members of the CUNA council but non-members can obtain a copy for $50, said CUNA.

–jrubenscut@aol.com

Instant Insights /

CUNA White Paper Shows Opinions on National Branding Run the Gamut

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