BETHPAGE, N.Y.-One of the largest credit unions in this state is launching a new brand image as part of the most comprehensive marketing campaign in its history.
The campaign is in response to a survey of 400 Long Island residents that underscored the need for the $3.7 billion Bethpage FCU to re-make its image to stand out in a crowded marketplace.
"A couple of key findings came out of the study. As an institution we have relatively low awareness in the Long Island market, especially compared to the big banks," said VP of Marketing Jerry Schmitt. "We know we need to be better known as a community institution."
In fact, just 12.5% of respondents said credit unions were at top of mind when asked to think of a financial institution, and Bethpage FCU made up only a percentage of that small segment. Credit unions are also battling major misconceptions in the Long Island market-just 38% of survey respondents thought CUs can take care of all of a person's financial needs; 53% said CUs offer good service; only 49% know that CUs are federally insured, and 52% said that credit unions can make sure their money is protected. On the plus side, about two-thirds of respondents absolved credit unions of blame for the financial sector meltdown and 58% said CUs have low fees.
To break through to the public, Bethpage is completely redesigned its logo and color scheme to escape the monotony of blues as seen with Chase, Citi, Bank of America and Capital One. The new scheme is teal and orange. The orange especially will be a common element in marketing across every channel, Schmitt pointed out.
"Much brighter, much fresher and much more bold. That will transcend all of our transcendent signage. By the end of the month all of our external signage will change from blue to orange," he added.
TV Ads Also on the Docket
The credit union will also debut new television advertisements with personified characters that take their names quite literally from the institution. Beth and Paige will follow in the mold of characters such as those in Progressive and Apple advertisements, but because they are inspired by actual staff members, they should provide new members with a seamless transition from marketing to service.
"These two characters are designed to hit at all of the misperceptions that the research uncovered," said Schmitt. "They are smart, sophisticated and they can hold their own against any bank. The hope is that they will be very memorable and they will break through that competitive advertising clutter."
Goal: Double-Digit Growth
Bethpage FCU is aiming for double-digit growth across all key metrics-lending, deposit and new members this year as part of its longer-term plan to double in size every five years. The campaign is expected to continue for several years, although the first element of the campaign is to conclude in May. The credit union is just now wrapping up a baseline awareness assessment and will re-measure those numbers in June after the first "flight" of ads concludes.
Schmitt is confident that Bethpage FCU's investment of more than $1 million in the new campaign will pay off. Last year's targeting marketing efforts helped boost mortgage refinance volume that brought in more than $1.5 billion worth of business-three times better than the CU's record. He also noted that a $1 million campaign is "very modest when you look at what the banks are spending. But it is a significant investment that will pay off in return with growth and income at the product level."
