WASHINGTON -
"It" is the cooperative structure of credit unions, and there has been great debate about how to market this point of differentiation to consumers and if it's even worth the trouble.
But perhaps credit union members aren't as much in the dark about the cooperative structure as some have suggested.
"When you look at the Forrester (Research) studies and see that credit unions are second only to USAA when consumers are asked if they believe an institution acts in their best interests, that demonstrates that there is an intuitive belief in the cooperative structure," said Chip Filson, CEO of Callahan & Associates. "They may not be able to articulate it, but they do see a value in it."
The National Cooperative Business Association in Washington has also delved into this issue, according to Executive Director Paul Hazen. "We've done a variety of consumers surveys over the years, and we have found that about 40% of co-op members do know and understand the value of the cooperative structure. Then there's another chunk that have at least some knowledge, and then another 40% that don't know about it at all," he related. "But on some level, even those who don't know, know they're getting a good value, they just may not understand why."
The key, Hazen suggested, is taking every opportunity to drive that message home.
"I belong to several credit unions, and one of them always has its annual meeting on Thursday afternoons," he observed. "You have to make it easy for people to participate. People who participate learn the value of the cooperative structure."
That's why Hazen advises credit unions and other coops to consider every avenue to make participation more accessible to members, such as allowing for electronic voting (see related story).
NCBA has also tried to bring different types of cooperatives together. "Who better to market the cooperative value of a credit union than to a member of some other type of cooperative?" he asked.
