LAS VEGAS -
Joe Sullivan, who also serves as CEO for the Chicago-based consulting firm, said those Ps are: Personal, Product Free and Perform with Passion.
"In a commoditized industry, successful financial institutions think differently," he told attendees of the recent CUNA Marketing and Business Development Council conference here. "It is not about pushing products, it is telling members 'I understand who you are.' Passion is important because energy loves energy. If the credit union awakens the passion in its staff, it brings excitement to the workplace. Understanding what people are about brings an emotional connection."
In 2005, U.S. banks held $9,039.7 billion in total assets; credit unions just $700.5 billion. The same year, banks' asset growth was 7.4%, compared to CUs' 4.8%. Sullivan said more recent statistics showed credit unions' savings and loan growth rates declining.
"There are 79 million people in the United States who have a relationship with a credit union. That's 25% of the population, but credit unions do not have 25% of assets," he said. "The community charter has transformed the credit union industry, but it hasn't translated into asset growth because there is a lot of competition."
Part of the problem, Sullivan continued, is consumers think in milestones and life events-such as having children or buying houses-not products. He recommends rethinking communications with members to make the process more personal. One personalized letter to a member each quarter would make a world of difference, he promised.
Differentiation is the key to good marketing, while being a "copycat" is a negative, said Sullivan. "Every great retailer or financial institution makes people feel good. Make a connection with the consumer and make it a great retail experience."
Sullivan's top recommendation: stop "sheepwalking," or walking down the same path as every other financial institution simply because others already are doing so. "This is circular logic," he said. "We have to catch ourselves from doing it because everyone's doing it."
Chase offers a personalized ATM experience, which Sullivan said is a differentiator. Customers can go online and register their preferred language and fast withdrawal amount. "Real value" is defined by the consumer, said Sullivan. Baby boomers want an experience that makes them feel good, so seemingly small touches-such as music in the lobby-are important. When a financial institution is able to listen to its members or customers, it changes its way of thinking to become more focused.
One of the top goals for a financial institution is to create "loyalists." Sullivan said a loyal CU/bank member/customer has higher deposit and loan balances. Unfortunately, "there is not one magic bullet to make deposits flood in. Try rewarding relationships. Identify the top 100 members and write them a thank you note."
Other Sullivan recommendations include:
* Pay attention to the market. "Banco Popular has outfitted semi-trucks with tellers. These trucks pull up to construction sites and open checking account for Latino workers."
* Stick with it. "Do no more than two marketing campaigns in a calendar year. Campaigns take time to gain traction."
* Use multiple media channels. "Do newspaper ads to reach baby boomers, but do online ads at the same time."
"Know the dominant market segment the credit union needs to go after and do it," he added. "At the end of the day, it is all about growth."
