By Frank J. Diekmann
If challenges to credit unions were raindrops, the loan portfolios of most CUs would be flooded with sump pump loans (You're welcome, California). I won’t even bother you with listing some of them; if you don’t know what they are you’ve got a drought of a different kind to deal with.
So given all that is new and at times overwhelming to credit union leaders, it’s simply amazing how often one question just keeps coming around. When CUNA CEO Jim Nussle made his first appearance at the League of Southeastern Credit Unions’ annual meeting in Orlando, during the audience Q&A the very first question he got wasn’t about his impression of CUs or what changes he plans to implement; instead it was one you might have heard once or six times before: “What about a national credit union image campaign?”
The new CUNA CEO conceded before answering, “It’s one of the most consistent questions I get.” As it was for Bill Cheney before him, and Dan Mica before that and… I wasn’t around but I think Ed Filene used to field this question.
The consistent response to that question really needs to be “Why do credit unions need a national image campaign?”
In a less-than-subtle sign that apparently everyone in credit union audiences is updating Facebook or watching cat videos, the “where is the national image campaign” question almost always follows a presentation—often more than one—about credit union growth. Lending is robust. Media coverage positive. And membership has soared right past the 101-million mark faster than Republicans have announced they are running for president.
No one, it seems, ever hears any of that. Instead, some in credit unions continue to pine for their own “Got Milk?” campaign, ads that haven’t even run since 2014.
The California Milk Processor Board, which initially backed that famous campaign, did so in 1993 to spur sales of an old-fashioned, wholesome beverage in a suddenly caffeine and sugar-obsessed culture.
But credit unions are not only seeing strong sales, they are positioned right in the values sweet spot of younger consumers. Milk wasn’t cool; credit unions are. So why the never-ending questions about a “Got Credit Unions?” campaign.
Some of it is perhaps credit union insecurity. Or maybe it’s really about a campaign CUs want for themselves more than consumers. Or maybe all the questioners come from those that not seeing much membership growth—it’s true that those robust CU numbers reflect the largest CUs, but the issue for smaller CUs isn’t just about awareness.
What’s interesting to think about is that if credit unions were currently backing a multi-million-dollar, multi-media awareness campaign, everyone would be crowing about the results it is driving. So consider that CUs are getting the results right now without budgeting a dime.
Besides, what most CUs really need isn’t a “Got Membership?” effort, but a “Got Walletshare?” campaign. Because new members are one thing; new members who bring profitable relationships to the CU are quite another.
An Ironic Message: It's For Those Who Are Not Here
During that same League of Southeastern CUs’ meeting earlier this year, Nussle was joined in a Q&A discussion by Patrick La Pine, CEO of the league. La Pine posed one observation that was especially worth discussing: “One thing that concerns me as I look about the room here is that we need to be able to reach out to those credit unions that are not here at this meeting.”
It’s a very good point and one I’ve raised before: the credit unions that could benefit most from a conference are the very same ones that can’t afford to attend conferences.
“At the credit union level, I will not lie,” La Pine continued. “It’s been a real challenge for us to get our credit unions engaged again. I came here in 2009. Most of our credit unions had just turned inward, trying to survive. Now as we come out of the recession, Florida and Alabama are doing well. We’re now staring to see more credit unions engaged. We have 1,120 registrants for this event. As resources become available I think it’s important for credit unions to get re-engaged. We may have to use some peer pressure.”
Might I propose a “Got Engagement” promotion?
Frank J. Diekmann is Cooperator-in-Chief at CUToday.info and can be reached at Frank@CUToday.info or @FrankCUToday.