PORTLAND, Ore.-Credit unions are making a mistake in not leveraging their collective, cooperative nature in their marketing messages, according to one person with a billion-dollar plus CU that believes its advertising benefits all CUs.
"We don't focus on one product, we do a higher level profiling of the products that credit unions offer," said Kelly Schrader, chief operations/risk officer for the $3-billion OnPoint CU. "We let people know credit unions are full-service institutions and are a better option than banks. We have a collective responsibility not only to our own brand, but to the credit union brand as a whole. Larger credit unions can be stronger partners with smaller credit unions in the communities they serve. It is a very special industry and we are all fortunate to be part of it."
Schrader, who previously was SVP of marketing, is known for producing innovative television commercials. Schrader, who still oversees marketing in her new post, said the smaller credit unions in the greater Portland area look forward to OnPoint's new TV spots each year because they see an uptick in membership as a result of the larger credit union's ads.
'Wonderful Opportunities'
Shrader believes CUs should collectively take advantage of the "wonderful opportunities" brought on by the "Occupy" movement and Bank Transfer Day. She said CUs have spent millions of dollars over the past two decades trying to say what the credit union difference is, "and over the course of 2011 banks really helped bring that message home."
"What banks did put a spotlight on credit unions," she assessed. "Bank Transfer Day was an important day and there were wonderful campaigns done by many credit unions to get the word out, but the challenge is to keep that momentum going. We have to keep that feeling more real in the credit union space for as long as possible to continue to capitalize on the opportunity."
Credit union marketing has achieved a good level of effectiveness compared to recent years, Schrader, believes.
"Professionalism, as I define it, refers to the marketing budget every credit union has and what the marketing director does with that budget," she said. "In recent years there is a more clear difference between credit unions that have larger marketing budgets and are growing. Those credit unions are able to provide a different level of delivery compared to credit unions that have chosen to stay at smaller asset sizes."
For seven decades OnPoint was Portland Teachers CU before converting to a community charter in 2005. Schrader said OnPoint evaluates every potential promotion, product or community involvement endeavor based on both how it will dovetail with the CU's education heritage and its expanded FOM.
"This keeps us humble, honest and consistent. Our TV ads also have a consistent look and feel. We have the same director each year. When people see the commercials and they know it is an ad for OnPoint. My guess is in the case of most credit unions that went to a community charter their long-term members feel the credit union has gone away from them. We want to keep all of our loyal members as happy as possible while getting the new members to come along."
Though OnPoint doesn't use it as often as it once did, direct mail is effective when augmented with the CU's website and social media. "The postcard format, especially if it is bright and eye-catching and consumers don't have to open an envelope, is very effective," she said.
OnPoint views social media as a "very viable" channel and has a designated social media person who actively tweets from community events and about product specials. The Portland market is progressive about Facebook and Twitter, Schrader said, and OnPoint receives a large number of real-time, one-to-one consumer questions-including new member queries, via social media.
"One thing we continue to find with social media is while they are tremendous tools, if they are not actively engaged and monitored they can be damaging. It is amazing how quickly someone can have an opinion that might not be accurate, but when that person has a number of followers the damage just grows and grows. Some credit unions put up a Facebook page or send out a Tweet once or twice a week, but that is not the best use of social media. It can be your best friend or your worst enemy.
"Credit unions don't have a choice but to be involved with social media, so they should do it and do it right with a healthy appreciation and respect," she added.
Be True To Your Roots
"Each credit union should be true to its roots while providing the products and services needed," she declared. "This industry is unique and special, because credit unions help each other. With the economy the way it is today we need to know how the impact of one credit union's message affects all credit unions. We must all be aware of moving the credit union brand as a whole while highlighting our own brands. We all have the responsibility to the sustainability of our industry in a global sense."
Schrader said she has seen the marketing function within CUs earn more respect.
"Today there are so many great brands and there is a lot more focus. Marketing has gotten a seat at the table because there is more than just what the logo looks like. People realize the brand creates followers, which in turn creates growth, which in turn creates profit."
Schrader said she is a "firm believer" in having measurable results, and applies ROI to every part of marketing.
"You have to know what worked and what did not work, so you know what was successful and what you should not do again."
