Branding vs. Blanding – Making Your Credit Union Stand Out!
Jeffry Pilcher said “Prototypical Blanding” today and I had to figure out a way to use it in a post!
Ok, first let’s get a few things out of the way. While I may have only been in the CU game for about 7 years, I have been in branding and marketing for about 15 years. One thing I can tell you is that “Bland is not a Brand”
Even bran cereals and vegetarian foods are trying to say they have flavor, shouldn’t credit unions try to say at least that?
Nope, not if you ask the folks that I talk to. So many credit union folks have a “Fly below the radar” approach to branding and marketing that, if it didn’t make me want to cry, would crack me up.
Here is a fer-instance analogy. I own a coffee shop (as I seem to be saying a lot lately, but it is relevant – I swear!). My coffee shop is a lot like many credit unions. If I were to take the “Credit Union Methodology” of branding and marketing, this is what I would have to do…
- Visit all the local coffee shops to taste their coffee and food. Then I would adjust my formula to taste exactly like theirs. Obviously this is what their customers like and since I want their customers, this I what I should do. It makes no difference that my product is superior and my existing customers love my product.
- I need to look at my competitor’s products and rewrite my menu to serve the same thing. It doesn’t matter that I am nestled between four schools and have a great lunch crowd – I need to only serve muffins, Danish, scones and microwavable breakfast sandwiches. No salads, wraps, sandwiches, hot dogs, sodas (pops), mini pizzas, desserts or anything like that. That’s not what my competition serves, and they must be right…right?
- My competition sells a bunch of stuff that my customers have never asked for and don’t seem to want like CDs, air fresheners, bookmarks, coffee machines and dishes. Maybe if I buy these things and line my shelves with them, then people will buy them. Maybe simply having these things, like my competition, will cause their customers to flock to my coffee shop.
- My competition opens at 5am every day, we open at 6am. We used to open at 5am but since we serve a lot of teachers, cops and students, no one would come by till 6:30. Maybe I am doing something wrong. The other places must be getting traffic at 5:00 am. It has to be something I am doing and has nothing to do with my customers or their needs. I guess I will have to pay the extra payroll to be “competitive”.
- My competitors use warm and welcoming colors on their walls. They have suede seats and piped in jazz music. This is much nicer than my funky 20ft airbrushed mural, local punk rock band photos and nightclub style booths and tables with rock music playing over the speakers. I should go towards creating a relaxing atmosphere instead of fun, funky and punk rock. I would hate to be known as that “weird coffee shop”. My customers are all the same after all, in lockstep and completely conformist…just like my competition’s customers right? I mean, no one wants to be known for being unique after all.
- My competition never does PR stunts. They never go out to the Christmas tree lots and hand out coupons for free hot chocolate; they don’t give out free dog biscuits to their customers with doggies. They don’t give out free milk to the kids of parents stopping in for their morning, afternoon or evening coffee. They don’t make t-shirts calling their competition and their customers “Corporate Whores” or any of the other things that we do. We should stop doing that immediately because it is a waste of money and time. I mean our competition doesn’t do it…
Credit unions seem to suffer from an interesting condition that dictates that they must be in lockstep with their peers. Stepping outside of that perception of what is “Allowable” is met with fear and avoidance.
Even credit unions that are surrounded by banks and credit unions on every block are hesitant to try something wild and new in fear that their members or potential members might not take them seriously “as a bank”. Instead, they stand in line with their hands out waiting for a few table scraps that might make their way in their doors.
Credit unions are businesses and all businesses have something in common. They have to get non-customers (can we call members what they are for a change – CUSTOMERS) to give them a chance to make a sale. In order to do that, you have to get their attention. Sometimes it takes a slap in the face, a slap on the back or a pinch of the butt – whatever it is, you have to get their attention. Once you have their attention, you have a chance to make the sale. That is it. There is no magic bullet. But I can tell you this, you will never get their attention if you look like your competition.
Back to the coffee shop – we are known as “That crazy coffee shop”. We name our drinks funny names like “The Madd Hatter” (4 shot mocha) and “The Gunslinger” (6 shots of espresso and sugar). We have punk rock band photos and crazy murals. We have a drive through, a dining room and a patio for smokers. We host political meet-ups and meet-ups for the local wiccan groups. We are known as the crazy and weird coffee shop next to the tattoo shop. We are ALSO known as the coffee shop with the best coffee and service and employees in town. That’s not my opinion; it is the opinion of my customers.
I might not win the “Best Local Coffee Shop” in the local magazines or newspapers. I might not be able to compete with the “Mega-Banks” oops I mean “Mega-Chains” on advertising, price or locations but I know that I am beating the other local independent coffee shops. You know how I know? They are all for sale. Even after ripping off our signature drinks (and failing). Even after TRYING to duplicate what we have created. They are all suffering, even the ones who win the local “Best Local Coffee Shop” awards.
To me, I am ok with being known as weird and crazy, as long as I am ALSO known, by my customers, for being the best!
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Comments
Interesting how you drip those comments into a filter you call “branding”. It sounds more like “marketing” or “strategy” to me.
My observation, Tony, having spoken to and worked with a number of credit unions, is that many CUs are stuck between the proverbial rock and hard place.
On one hand, (sorry for the upcoming slight) many CU marketing departments aren’t very strategic or influential in their organizations.
On the other hand, there are a number of CU marketers that I’ve met who ARE strategic, creative, etc. but work in a CU that doesn’t view them as strategic. Overcoming this is easier said than done.
On the other other hand, there are many CUs that don’t think strategically. Period.
People in organizations: 1) are products of their environment, and 2) do what they’re paid to do. So when 1) the organization is tactically focused, and 2) people are paid to fight fires, print marketing brochures, etc. .. then “follow the crowd” is what you get.
Interestingly, “crowdsourcing” seems to be a popular strategy these days.
Thanks all!
@Ron, yes, there is a lot of marketing going on at the coffee shop. But we are intentionally creating a brand that differentiate us from not only the big chains but also the other local shops. This branding has made us memorable and noteworthy. We are also limited by a pretty small marketing budget so we are forced to squeeze the absolute most impact out of every dime we put in.
You are right that the marketing departments are treated with less respect that the legal or finance departments even though neither would have anything to do if it weren’t for the marketing department.
The biggest issue I have is, the idea that staying safe with marketing is the smart thing to do, and then the CU laments that they arent the leader in their market. The point I was trying to make is that those who lead, lead by leading, not by following the trend or by doing what is tried, tested and proven.
It is all wasted opportunity to me.
But back to your first comment. Marketing is a function of branding. We relized a long ime ago that we could never beat Starbucks in “Star Power” and that there were other local independant coffee shops that were “trendy” and in much better locations (high end shopping centers). We are next to a tattoo parlor on a side street in a building that was once George Washington Savings (we use the old teller drivethrough window). It is not a great location. So we needed a way to become locally famous, even notorious.
It took a few years for us to settle on developing that brand, to shun conventional wisdom - we are STILL working on it. But the marketing and PR efforts are the way that we support that brand. Now people know our name. When I talk to people and it comes up, I always hear “I love that place! That plce is crazy and the people are always so nice!”
Your brand should differentiate you from your competition and your maketing should support that brand message. Thats all I was trying to say. Thanks for your comments though, you know I love it when people take me task a bit. I don’t always realize when I leave points worth making out of my post.
Thanks Ron!
Tony, you’re right - most CUs want to be “edgy” but not “weird.” Thus the blandless that plagues all but the Mt. Lehmans. We gotta fix that.
I agree with Kenneth. Bravo Bravo. Wish I could visit your coffee shop…it isn’t near the bay area is it?
@Trey - Thanks for the support. Not every market can support a weird credit union (I wish though). But each credit union needs to find their own identity. Conformity breeds mediocrity and the only way to be competitive is to make a stand and be known for something.
@Jonathan Thanks man, no the coffee shop is here in Stockton. North Cali but about an hour and a half from the city. When we were trying to develop the brand, the employees really got involved. The female employees offered to “Go Bikini” for the cause, but I quickly stopped that. Their is weird and funky and then there is WEIRD and FUNKY.
We have an incredibly loyal and diverse clientele. Our customers bring birthday presents for the employees, Christmas presents, wedding and baby presents. Our employees are the best tipped coffee crew in our town (I did the research).
Like I said, we are still developing this brand and trying to figure out new and interesting ways to become more famous.
That is an interesting thought. Make your credit union famous for something!
*BRAVO BRAVO*
I think I will print your post and share it with my marketing manager.