SAN BERNARDINO, Calif. — After dedicating marketing budget after marketing budget to convincing the community that the credit union served more than members of the U.S. Air Force, Norton Community CU decided it would be wiser to spend the money on changing its name.
The investment in the name Alta Vista, which removed the tie to the former Norton Air Force Base, turned out to be sound. The $150-million credit union has increased membership by 15% two years after the change, and grown assets by $21 million in that same time. In the two years prior to the switch, CU assets had shrunk by $24 million.
"We would have been very challenged to have this same result with the old name," offered Lisa Vanderfin, Alta Vista marketing manager. "Originally we were Norton Credit Union, and then we changed to Norton Community Credit Union. So we were holding onto the Norton name. But no matter how much we advertised that we served more than just the Air Force, people did not seem to really understand we were a community credit union."
Despite the perception problems, changing the name was not an easy decision. Many of the board members were tied to the Air Force community, and there was pushback from longtime members. "Some said they would leave if we changed names," Vanderfin shared.
That didn't happen, Vanderfin said, thanks to the credit union being proactive. CEO Debra Grisamer made herself available and visible to members before the name change and months afterward. "I think that really made a difference and headed off what could have been a problem, Vanderfin said. "Debra answered a lot of questions."
But some members thought the name change was being made as a result of a merger. Vanderfin said the CU moved quickly to further communicate to membership why the change was being made.
The name change took place in April, 2007, and it took the remainder of the year for credit union staff and members to become acclimated to the new identify. It took the CU one year to begin seeing a payback from the $282,000 price tag to change the name, Vanderfin said. This year, annual loan growth is above 18% and loans are up more than 21%. When the new Riverside Avenue branch opened, it attracted 800 new members in the first month.
Along with the name change, Alta Vista revamped the image of its branches, introducing free-standing teller kiosks, video messaging, and more vibrant colors and designs, Vanderfin said. The one thing the credit union may have lost, to a small extent, is the extremely close ties it had with retired Air Force personnel. "When many of them stopped by to deposit a check or make a withdrawal, they'd wait around to see if some of their old military buddies would stop by. They were like little reunions. We still see that happen, just not quite as much."
