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Marketing to Women...gaining CU traction!

As many of you know, I've always been passionate about this subject. Myself and Tom Peters.  I always keep my eye on who is doing what in the CU world (in that vein).  And I'm here to tell you that I am seeing movement recently!

Up until a couple of years ago, I saw only one CU segmenting to this "market" (not a niche..by any means).  That CU was powerhouse Mountain America, and the point person was Annette Zimmerman. Annette is now a CEO in my neck of the woods with Primeway FCU.  The program was the Women's Financial Service Network.  

About every 18 months or so, Callahan or CUNA or some CU stakeholder would make a minimum splash with a webinar or report on the great opportunities in store for CUs with the "women's segment" (did I mention...this is NOT a nice little "niche").  And just about every time...there was Annette as the resident cheerleader for the opportunity.  Then all of that would disappear for another 18 months.

Then in the summer of '42...I mean '09(did I date myself), Verity CU Chief Marketing Officer Shari Storm somehow convinced her leadership and board (can you believe) to roll out VerityMom...with Y & F Tim McAlpine doing what he does best behind the scenes! And would you believe it's still going strong! Well done Shari and Tim!

Then at the first of this year...a tremor! My friend Sarah Snell Cooke scheduled a program on CU Times ON AIR on "Marketing To Women" (with Myriam Digiovanni and Shari Storm...and of course, myself).  I specifically remember Sarah being a bit baffled as to why more CUs had not leveraged this opportunity (as you have probably know now, Sarah...IT'S COMPLICATED!). Then, this summer, another "MTWomen" roll out of a full blown campaign called "get your worth on",  anchored by Gabby!

But the really important initiative of the year comes from, once again, CU Times, with their ongoing campaign showcasing women in the CU industry...called WomenTo Watch.  This, first of a kind, campaign for CU pubs couldn't be more timely.  Just jump on the CU Times site...plug "women" in the search, and see the slew of articles about women who serve on the front line and in the C-Suite for the industry.

Just the other day I was chatting with my new friend Laura Enock...CEO of CU Content (soon to celebrate a decade of service to credit unions). Laura recently (90 days ago) launched an entirely different program called CUponDeals, a "national" group discount program exclusively for CUs.

Laura was sharing that, even though she had not positioned the "daily deal like" initiative to skew towards either gender, the first ninety days of "opt in" members was overwhelmingly women. That's really no surprise based on the fact that "daily deal" programs have continually shown strong women participation.  Even though it's early in the life of the program, it looks like another "marketing to women" success story in the making.

 

 

 

"Bank Transfer Day"...Tell Them A Story!

This won't be a long post, because if you are a credit union advocate...you should already know "the story".  I've been reading everything I can about how CUs are approaching this opportunity. Whatever opinion you have about this...no one can say this is not an exciting time for credit unions.

But in all I've read, I have failed to see what I believe is the essence of the credit union "story"...it's history.  I've seen lots of features and benefits...and "ditch your bank" promos...but not one campaign that showcased or even just included the story of why credit unions were started.  And it's a powerful story!

I'm a huge fan of 60 Minutes creator, Don Hewitt, whose formula for success focused on 4 little words...tell them a story!  So if you don't know "the story", simply go to Wikipedia...and if you're really interested, check out the video on America's FIRST credit union, St. Mary's Bank! (perhaps a little corny, but "genuine"). 

And with all of the features, benefits and bank bashing...tell them a story!

 

Your CU Auto Center is out-of-date! Think USED!

For the last year or more we've been seeing article after article stating that the ONLY THING that is holding CU auto lending up is USED CAR LOANS.  And yet, most every CU "auto center" I see still focused on NEW! Here's the latest just today from this CUTimes piece.  To quote from the article..."A 9.4% decline in new vehicle loans was offset by a 6.1% increase in used vehicle loans".

While some might think that 1) the extended length of car ownership, 2) new car buyer shift to used and 3) Gen Y indifference to the car culture is strictly due to the recession, I'm not so sure these changes are temporary.   And even if the shift is temporary, most economists predict the current move to austerity will last for at least a couple more years.  Either way, the current economic climate has caused members to look much closer at their transportation needs and habits.

And yet, the majority of credit unions continue to display the same old content on their "Auto Centers"... content that is still geared to "car sales", while ignoring the fact that the days of accelerating "new car" CU loan share are long gone.  Every expert in the business is telling CUs to focus on "used car" lending.  And the evidence is overwhelming that Gen Y is not, as a group, consumed with NEW cars.  They will look at transportation more as a "commodity".

Here are a couple of suggestions of ways to bring the Credit Union Auto Center up to date:

1. Start focusing on used cars!  And I don't mean placement of a "used car" configurator that leaves your members at the mercy of a dealer used car pro (pro, as in "sales pro").  And get some new, edgy auto resources.  Replace the old CU standard NADA Guides (dealer skewed) with sites like Member Auto Center an exclusive CU auto center micro-site thats affordable and features special Pre-Owned inventory from pre-approved, member dealers.  I can personally guarantee this program...I helped manage this program for three years.

2.  Car Care and Repair resources--Members are just as challenged with maintaining and repairing their vehicles as they are in dealing with dealers.  And the fact that members are keeping their cars longer means they will opt more and more to make major car repairs, rather than take on a car loan (either new or used).  It also means that there will be more focus on vehicle maintenance. I only found one credit union that posted "car repair" content on their site.  As I mentioned in my first post on this subject, why can't there be a CarCare and Repair network of providers to match what many CUs have for dealers. 

3.  Car Care and Repair Discounts-- There seems to be a wave of companies offering credit union member discounts on everything from tax preparation to  flowers.  But I've only found one company offering discounts on car care and repair services.  myEZCarCare offers credit unions the chance to provide solid discounts on vehicle maintenance, tires and car repair with such nationally known providers as PepBoys, NTB (National Tire & Battery), jiffylube and many others...for only $10 per car loan.  And they make it easy to implement with no contracts or minimums.  The discount card also offers rental car and hotel discounts.  What an inexpensive way for CUs to provide "value" for their member car owners!

So there you have it.  Credit Unions have a golden opportunity to be first movers with respect to providing "everything auto" (resources and education) for their members.  But they're going to have expand their current "auto centers".  We're not talking about a big investment here...just a way of adapting to the changing auto ownership environment.

 

CU Auto Centers no longer an option...CUs must have them to compete!

Not one week goes by without a story (or three) about CU auto lending...the bread and butter of CU lending.  But most every article focuses on "new cars" and "lending mechanics" (rates, credit ratings, etc.).  Rarely do you see pieces devoted to the "experience" the credit union delivers to the member car buyer. 

I'm talking about a CU Auto Center...or the lack thereof!

You'd think by now that most credit unions, large and small, would have their own CU Auto Center, right?  Wrong!  This is one case where "perception" is not the reality! Even with the cost being next to nothing(most models like the one I worked for have the dealers bearing the cost).

Truth is, that there is a surprisingly large segment of CUs that still have a very fragmented approach to engaging their members with the information, support and advocacy members seek when they decide to buy a car. Sure, many of the credit unions use templates like AutoSmart platform from CUDL, but the majority of those are coupled with to Indirect Lending.

Let's pick a market like Austin to test my theory.  Out of 12 Austin CUs (5,000 members plus), not one had a complete Auto Center.  And we're talking about a group of 12 that "averaged" 50,000 members between them! 

The 12 Austin CUs I studied did not have an "Auto Center"...and if they had resources for the member car shopper, they were spread out all over their site. That's just asking for the member to take one look and head for the carmaker site or something like Edmunds.com...where they are lost to the credit union early on in the research stage.

My point is that CU Auto Centers are no longer an option for credit unions.  Most every competitor, from CostCo to Bank of America, have realized the fact that car shoppers head first for the convenience and the privacy of a web resource with unbiased auto info....and all in one place. CU Auto Centers are not exclusive anymore...they're the price of admission. 

 

 

Introducing Gen Z! ...Prime Time for Credit Union Auto Lending! (and other things)

I've been thinking about it for a while now, but an article from this this weeks Callahan email pushed me to this post.  The piece was titled Driving Loans in the New Auto Lending Marketplace, and it's another in a long line of recent articles encouraging credit unions to connect with the member car buyer as early in the process as possible.  But the process is not the same for every demographic.

I spoke of this in a recent post titled CUs missing opportunity to engage Gen Y Car Buyers... "long" before shopping!  In that post, I spoke of the untapped opportuinty credit unions have to connect with Gen Y (some would say Gen Z) at the point of "licensing"...the first step for the teen driver.  And its a stage that no other "auto lending" competitor is thinking about.  "Retail automotive" and even their lenders are focused squarely on the "buying process"...not before and not after. I know...I've worked in that industry!

So where does the Gen Z come in?  In researching for our new initiative, Decision 2 Drive...and Stay Alive, we're discovering that the majority of CUs are initially engaging the Gen Y "first time" driver after high school...or at the very least, in their senior year of high school. That may be too late!

An old article from Callahan speaks of these "missed opportunities" in Are Traditional Financial Services Marketing Efforts Missing the Mark?  The key point that caught my eye spoke of the critical moment when the strong influence of parents and school(high school) begin to expand to other influencers.  And that migration is not good news for credit unions.

Age 18 to 19 represents a critical crossroad where teenagers migrate from learning about financial services exclusively from their parents and school, to seeking additional information from outside resources.

Ah...I couldn't have said it better (but I'll try)!  If credit unions wait to engage Gen Y until they reach their senior year in high school or beyond...there is a good chance that someone else will get them.  Someone like an OEM "captive" or big bank with a big budget. 

I found the CU Times first reference to Gen Y in this article a decade ago this month titled "Generation Y next up for credit unions" (quoting Michael Neill).  It was interesting to read a "first reference" to Gen Y in a CU Trade Publication.  That was a decade ago!

Shouldn't we be having that same conversation about Gen Z today?

 

 

70% of Gen Y will be buying USED...so why are CUs still stuck in "new"!

7 out of every 10 auto purchased by Gen Y will be USED!  And yet, most credit union Auto Centers are still focused on NEW.

This Callahan article about a Gen Y auto initiative at Arlington Community FCU really hit me (please listen to the brief audio too).  Now believe me, I am not being critical here.  Arlington Community won an award for this and it is a very innovative initiative. If CUs don't grab Gen Y before college...the odds of a relationship are reduced dramatically.

But it got me to thinking...how could we imporve on this great idea!  My background with CUs began with running the Preferred Dealer Program for a Houston based CUSO and I also have experience in selling cars at a dealership (unfortunately :-)). So I am constantly researching what's going on with credit unions, Gen Y and cars.

And whats going on is this:

1. Not only will Gen Y be prone to buy used, the research seems to suggest that "millennials are not romantic about their wheels" (thank you Carol Phillips).  All you have to do is google "Gen Y" and "cars' to see that the overwhelming evidence is that Gen Y has an entirely different take on cars from previous generations.  A commentary on "the new cool" comes from the 60 sec spot link at the top of this piece from The Truth About Cars blog called "Are Cars Still Cooler Than Phones?".  Looks like a car spot, right? 
2. So...if Gen Y will be buying "used"...car care will become important to them immediately (and their parents). Are credit unions adapting to the changing "perceptions" and "priorities" of Gen Y's transportation needs? To answer that, here's your next Google assignment.  Simply Google "auto center" and "credit union" and you'll find the same old "bill of fare"... every resource geared to "buying" (car pricing, buying services, gap and mechanical breakdown, insurance, etc.).  And the entire tone of the assistance is still geared to "buying new", even though research across all generations reveals that today's car buyer is taking a much closer look at "pre-owned".
3. The "new normal" has changed the transportation resource needs of members.  Members were keeping their cars longer, even before the recession hit.  Soon, average ownership rates will be pushing a decade. While "under 100,000 miles" use to be the benchmark for trading for new, members are joining the 100,000 mile club more and more. All of this means that care care and repair information/resources will become increasingly critical to your member. I only found one credit union (University FCU in Austin) that posted "car repair" content on their site. Kudos to University!

Credit Unions have always had a national reputation of being a good place to get a car loan. But the present "CU Auto Center" is totally focused on "new"!  That's not where Gen Y will be in the future. With the right effort, CUs could expand that footprint to leverage the new normal of "sustainability", and perhaps, dramatically increase their odds of connecting with Gen Y. 

 

 

 

Who Is the "best" (Net) Promoter? (financial services)

Several months ago I asked my friend, Denise Wymore (Net Promoter champion), who was the best Net PROMOTER...men or women?  She was unaware of any "gender" statistics, but said she would check it out.  After that, we both got busy and forgot about the inquiry...until just recently.

Turns out that I'm not the only one who was curious about the question. In an interview in 2006, Eric Hansen (BIZ GURU Tom Peter's Brand Manager), asked Net Promoter creator Fred Reichheld the same question. Reichheld didn't know either...but said he would look into it.

Check out this excerpt from the interview:

One last question, Tom Peters has a slide that he uses in his speeches that says that if a woman likes a product, service, or company, she'll recommend it to 20 other people but a guy will recommend it to 2 other people. Those aren't the exact numbers, but there's a huge significant difference between them. I'm wondering if gender has been worked into this Net Promoter Score. If a company's audience is all women, are they promoting it more quickly? Or is that too fine of a detail?

FR: That's a great question, and I need to think more about that. I do have the data to look at that. It did not jump out at me, but I'm going to go back and look.

I'd be interested to hear if there's actually any data to support ...

FR: I can test that, because we've asked hundreds of thousands of people how many recommendations, positive or negative, they've given for a product or service over the last six months. In many cases, we have the data on their gender. I have noticed that women, in general, understand my argument much more quickly.

Here is a link to the entire interview.

I emailed Erik the other day and he said that neither he nor Reichheld had re-visited the question since.  He did, however, ask me to let him know the answer when we found out.

Then, just this past weekend I connected via Twitter with Deb Eastman, one of the executives at Satmetrix (the primary company behind Net Promoter), with the same question.  Check out her answer below.

 HerMoneyOrg Roger Conant@debeastman Who makes the best promoters...overall-- Men or Women? Ever tracked that?  

 

debeastman debeastman

@HerMoneyOrg we haven't tracked men vs woman promoters but I suspect it has more to do with product ie men- sports, woman-fashion

I'm not sure there is one clear cut answer, but we're going to find out.  In the next several months we'll be huddling with my buddy Denise Wymore, Michelle Bloedarn and the team at Member Loyalty Group to research the answer.  We're talking about "promoters" here...those most likely to recommend your credit union to others.

Of course, it's not that easy...just to say one gender is a more effective "promoter" than the other.  Segmenting to gender is never going to be that easy (that's why I like it...no competition!). But if one agrees, in gereral, with BIZ GURU Tom Peters...then you might well have to say that women, overall, are better "promoters"! But we'll keep you informed as to what we find out as we explore the subject.

 

 

 

 

 

 

 

 

 

CUs connecting with Women...let's start with MOMs and Gen Y!

As many of my CU "mavin" friends know, I've spent some time trying to prompt CUs into segmenting to their women members.  Now, CUTimes Editor-In-Chief Sarah Snell Cooke is giving me another chance to create buzz about the opportunities CUs are missing by failing to connecting specifically with women.  I hope you will tune in next Tuesday (Jan 18th) at noon Eastern to Sarah's "OnAir" program. Thank you, Sarah!

I'm not the only one who has touted "segmenting to women" as a valid strategy for CUs.  Filene, CUNA and Callahan have all endorsed this strategy via articles and webinars in the past (if you're interested, I've got plenty of attachments I could send). If you want a great overview of the entire opportunity with women consumers, check out this link to the Fast Facts from the Marketing To Women Conference page.

But credit unions (and indeed just about every retailer) are addicted to Generation Y.  Not there's anything wrong with that!  But Generation Y is proving to be a real challenge to traditional strategies and it seems to me that success, at least so far, has been a bit elusive. Thats not just for credit unions...success has been elusive for every industry. 

Of course, I had heard of Verity Credit Unions "Verity Moms", but had not paid much detailed attention to it.  I should have realized that any project stewarded by Shari Storm, Verity's Chief Marketing Officer would be leading edge.  Shari was responsible for the launch of the first financial institution "blog" in this country...perhaps in the world.  And she recently became a first time author with the release of Motherhood Is the New M.B.A . 

In addition, Shari partnered with CU advocate Tim McAlpine, who runs Currency Marketing , to supply the agency support for the project.  If anyone has had success in the credit union community with Gen Y programs, it's Tim and Currency.  The Young & Free program has been quite successful. 

After spending several days of deep diving into the "Verity MOM" program (and especially it's evolution from the original target of families), I had an AH-HA moment.  Maybe the way to get the CUs attention about the opportunities surrounding the "women's market" is to leverage the fact that, as Shari says all too often, "Moms make most of the spending decisions in a family and they hold the most influence over where their children will eventually do their banking".  Let me repeat that...Moms hold the most influence over where their children will eventually do their banking!

Two pieces of research from Greenberg Quinlan Rosner verify that 1) Gen Y looks to their parents (60%) and friends (31%) for financial advice (Personal Finances:The Final Frontier for Social Media)  and 2) Gen Y turns to Mom in majority numbers (90% for MOMs and 65% for Dads)...and especially with single MOMs  (Coming of Age in America Part II) And single MOM numbers have increased 300% in the last 30 years (Audience Insights--CDC 2008). And that's not the only piece of research that points to MOMS as the primary parent influencer.  Just ask Shari! (30 minute discussion of Verity Mom program on Carla Day's CU Chat Up--Credit Union Ideas in Marketing)

And then there is this.  Several months ago I used my CU follower list to do a little research using Twitter's "DM"(Direct Messaging).  The question was "Is there a really good reason why CUs aren't targeting women members in their marketing"?  The majority of the answers were along the lines of "sounds like a good idea".  But then there was an answer from a well respected CU advocate (you would instantly know their name), which I thought was right on.  His answer..."because they are afraid they would run off the men".

I hope not, but I think he might have something there.  And that is a really bad excuse, don't you think?  So I'm ready to take another run at this "mission"...and looking forward to being on Sarah's program next week.