If it acts like a bank and quacks like a bank, it better not be a credit union…
Prior to the 2008 financial crisis and resulting TARP bailouts, many of us were content to shelve our cooperative difference behind our rates, billboards and new shiny products and buildings. It was almost as if we were a bit bored with the “difference” and thought consumers were more concerned with convenience, trendy brochures and free bill pay.
I’m not so sure they are.
And now it’s a bit more obvious. We see a different economy and a different consumer as well. We see consumers who are active co creators of content and vote with their wallets. They punish and reward brands based on their corporate practice. And even through the recession, they are 25% more likely to pay for sustainable brands.
70 million Americans represent this New Consumer segment. A consumer group that declares the mantra: “Purpose the new Passion, Participation the new Consumption.”
A segment that listens to, believes in and craves authentic stories (I don’t watch Biggest Loser because of the weight loss. I watch it because of the stories people tell about their personal struggles and fears causing the weight gain. Stories that impact inspire and bring you to tears). Authentic stories.
These New Consumers are box turners. No longer relying on the advertisement on the front of the “corporate packaging”—now reading the ingredients on the back as well. Essentially asking, “What are you really made of?”
They no longer ask “what’s in it for me?” but “what’s in it for we? For all of us.
Based on this research, is it any wonder there is a consumer clash between corporate practice and consumer value? Is it any wonder that many have taken a stand against corporate greed, crony capitalism and bailouts? That movements that include MoveYourMoney, Bank Transfer Day, and Occupy Wall Street have all found common ground on this one sentiment? It is any wonder that when you google “Bailout Rage” you get 2,400,000 hits.
This standing consumer protest will have lasting effects.
Credit union growth came from one generation of members transferring that membership advocacy to their children. In the last 30 years, that has waned. And now, as a new generation sees the unfortunate role large financial giants played in a global recession and financial crisis, we have an opportunity to reach a whole new consumer segment, as well as their future children.
These factors provide an enormous opportunity for credit unions. But only if we look, act and quack differently. Here is a short list to make sure you aren’t quacking like a bank:
· Woo your members, don’t serial date them
· Share your authentic stories and your humble beginnings – how you started out in a teacher shoe box, or a break room closet
· Celebrate authenticity! I don’t shop at my local farmers market because they remodeled the building and painted
· Talk about what you’re made of. How you’re different. How members are also owners. That they can vote. That they have a voice, and can participate in the cooperative process
· Allow them to participate in all you preach. Invite their passion and participation
· Share how one member deposit allows for another member to borrow
· Articulate how profits are returned back to members in the form of a sustainable cycle, allowing for low cost or free products and services
· Don’t start and end every member conversation a mini infomercial about your latest product
· Create opportunities for members to share problems so you can find real solutions for them
· Don’t gloss over the “cooperative difference” with new members - celebrate and articulate it
· Stop selling and start sharing. In the community. In your advertisements. In your sponsorships. In your branches
