DENVER — Credit Union of Colorado has steadily improved its growth rate following a name change two years ago that didn't stray too far from its roots.
Formerly Colorado State Employees Credit Union, the CU felt the old name did a great job of building loyalty among its existing sponsors. But it needed a new name to grow, and was concerned about making a choice that might alienate existing members.
"In our own discussions and in focus groups we understood that having some kind of amorphous name that conveyed the idea of total change would not serve us well," said Doug Schneider, VP-marketing for the $929-million credit union. "We didn't want our members thinking we were turning our backs on them."
The credit union had expanded to serve more that just state employees, including community colleges, special industries, and school districts. "But when we marketed to these entities we always faced the question, 'We're not state employees?' There was always confusion and hesitation."
Proof of Life
The name change has worked, taking CUC from a stagnant 1.5% annual growth rate to 3.25% in 2007, 3.5% in '08, and it is tracking to 4% growth this year. "The arrow is pointed up, and most important, member retention has not dropped off at all."
CUC received signs soon after the name change that retention would not be an issue, as it was clear that members accepted the move in less than six months, said Schneider. What led to that conclusion, he said, was the fact that the CEO - who tries to accept as many calls to his office as he can-fielded only eight complaints during the change. "After speaking with our president, I think seven of those members left agreeing with our move," Schneider said.
Another reason the change took hold swiftly, according to Schneider, is a strong marketing campaign before the switch to educate members about why the credit union needed to change its name to grow — and how that growth would also benefit existing members, hitting that all-important "what's in it for me" issue.
Marketing after the name change, which took place in August 2008, included a logo on its new website that morphed from the old logo to the new one.
"That might seem like a small thing, but I believe it did a lot to clearly communicate to members what was going on — especially to those who may not have been up to speed on the name change," Schneider said.
What also made a difference, according to Schneider, was having a strong project manager to ensure all staff were aligned with the change and bought into it, and informing vendors about the upcoming switch.
"We brought in all of our vendors and suppliers at the same tine and let them know about the name change. They were good about keeping a secret. That helped the name change go more smoothly in terms of getting vendors to do the things we needed them to do."
One thing CUC needed was a team to manage the signage switch, so that happened as quickly as possible at its 14 locations.
"We didn't want our signs covered too long; that might make some people nervous and think we might be going out of business," Schneider explained. "The folks who manage our signs subcontracted with others to make sure the signs were changed without delay."
On the Road to Cost Recovery
The new signs cost the credit union $220,000, and CUC spent $550,000 overall for the name change effort, Schneider told Credit Union Journal.
"It takes time to fully recover those costs, and we are still doing that. But to stay with our old name was not an option. Colorado State Employees Credit Union was the best of names and the worst of names. It did a great job of letting our original SEGs know we care about them and we are here for them, but it was keeping us from reaching our full potential."
