Trust, Service, Savings – The Power of Message Minnesota Credit Union Day at the Capital February...

Trust, Service, Savings – The Power of MessageMinnesota Credit Union Day at the CapitalFebruary 3, 2011

Agenda Introductions

Key messages – What they are and why we need them

Why key messages work/best practices for delivery

Conclusions/questions?

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Today’s Speakers

Dave Heinsch – Director

• Member of Padilla’s Investor Relations practice group

• Nearly 20 years of experience with investor relations, trade and business media, analyst relations, integrated marketing and broadcast journalism

Paul Omodt – Vice President• Oversees Padilla’s Crisis & Critical Issues,

Government Affairs and Media Practices• More than 20 years public relations and

spokesperson experience

Trust, Service, Savings – The Power of Message

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The Power of Message…

• Key messages – precursors to awareness, advocacy and behavioral change

• Everyone connected to the credit union needs to be an advocate

• Our goals today

- Take a few pages from the integrated marketing playbook. Examine best practices for message development, delivery and distribution

- Help arm you for articulating the value of credit unions to outside audiences


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Messages Create Focus

Focus to meet challenges, capture opportunities

• Lack of consumer awareness, unstable regulatory environment and struggling economy present significant challenges to credit unions

• The banking industry has taken a big black eye, and the timeline for recovery is still TBD

• Consumers and small businesses hold credit unions in high esteem – once they experience one!

• Shifting generations, changing consumer purchasing behaviors and other broader trends impact the choice of financial institutions


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Messages Create Focus

March 2010 Statewide Research

• Many Minnesotans don’t understand the differences between a credit union and a bank

• Significant disparity in reputation between credit unions and banks

• Public perception is generally positive, but…

• Opportunity to educate and market services without having to change public sentiment

• Must consistently and uniformly communicate what a credit union is, and what sets credit unions apart

Credit unions have opportunity to educate consumers, strengthen industry and gain market share


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Key Messages: What Are They?

• The points you want your audience to remember

• Calls to action – awareness is not enough!

• Themes you can keep coming back to

• Major types

- Definers- Differentiators- Validators- Situational

• Key Messages are:

- Memorable- Easily repeatable- Supportable- Few!


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Where Do Key Messages Fit? – The Message Pyramid


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For the States CUs: Key Messages Are Rooted In…


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Service: Professional,

friendly, experienced

service

Savings: Fewer fees,

lower rates on loans, higher

return on savings

Trust: Minnesotans

can trust their local credit

unions

• Credit unions are part of today’s financial system solution and are strong contributors to the communities they serve

• Members will need to augment the above with additional messages related to their own credit union

Building Out the Messages: Trust – Safety and Soundness


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• Consumers want their financial institution to be safe, sound and secure – especially in economic downturn

• Reassure members that MN credit unions remain healthy, strong, viable and sophisticated financial institutions

• Emphasize key messages of safety and soundness:• Operate with less risk• Exist to serve members, not profit

from them• Money is backed by full faith and

credit of the federal government• NCUSIF insures shares on deposit at

credit union up to minimum of $250,000

• Still actively extending credit

29%

Trust of credit unions

Trust of banks

Q18. How have the recent problems in the financial system affected your view of credit unions? Do you trust them more, less or about the same?Q17. How have the recent problems in the financial system affected your view of banks? Do you trust them more, less or about the same?

Building Out the Messages: Service

When consumers look for a new financial institution, it is usually because they are:

• Fed up with their current institution• Looking for a better deal • Looking for a better way to

save and manage their money• Philosophically driven -

interested in a cooperative banking model

Emphasize key messages of:• Personal touch• Member care• Service to the communityTrust, Service, Savings – The Power of

Message11

RESEARCH FACT: Both bank and credit union customers said that

“professional and friendly service” is their #1 factor

in choosing a primary financial institution

Building Out the Messages: Savings


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• In today’s economy, rate shoppers abound

• Choice between a bank and credit union can boil down to a “pocketbook issue”

• Credit unions appeal to many bottom-line sensibilities

• Consumers want financial institutions to be honest and clear about fees and rates

Best terms and rates on credit cards

Q20. In general, where can you get the best terms and lowest interest rates on credit cards?

Two thirds of Minnesotans don’t know they can

get a better rate on credit cards from a credit

union.

An Important Messaging Dimension – “Local” as a Proof Point• Remind your customers that you’re part of the solution, not

part of recent financial services industry problems

• Talk to members and potential members about your track record of helping people like them – their neighbors

• Appeal to those seeking personal, friendly service from the “hometown hero” – without the “bank” label

• The “farmers market” effect

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Key Messages – Why do They Work?

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Diffusion Theory

• Before consumers make any decision, they go through a process called diffusion

• The goal is to move people through the process as quickly as possible

• Different communications tools are more effective in different stages

• Current members and potential members may be at different points in the process, so a multi-channel marketing program is critical

• Well-developed and supported key messages provide the fabric


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Awareness

Evaluation

Reinforcement

Trial

Information

Adoption

Effective Message Delivery


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Evidence

The Way We Think

The point, or conclusion

Effective Message Delivery


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Evidence

(Support the point)

The Way We Listen“Get to the point!”

Here at the Capital – A Messaging Crucible

• Authenticity is key

• Variety is important

• Personalization is imperative

• Respect is a must• Office• Time• Different opinions


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Delivering Messages When You Get Challenged

Innocent (aka “dumb”) question

“Left Field” question

Softball

The setup

The absent party

Non-question


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Tactics for Addressing Them

Bridging

• I don’t know, but I can say …

• Let me underscore the important point …

• Let me clarify …• There’s a broader issue …


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Strip and Flip

• Recognize/acknowledge legitimacy of the

question• Remove the negative part• Respond with key

message/statement of fact


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Deliver Your Message More (Not Less!)


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• Your messages must consistently populate all communications channels, which work together to attract and retain members

• Newsletters• Statement stuffers• Presentations• Signage• Collateral• Advertising • Publicity• Social media?

• A blended approach is best

• Customers need to receive messages from multiple sources before they act

Projecting Messages Across Channels: A Few Facts…

• 26 percent of consumers rely on third-party media for financial information

• More than 20 percent of customers age 21-34 go to online news sources for financial information

• Nearly 40 percent of all credit union members rely on their credit union newsletter for information

• All these channels need to be infused with your key messages


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Source relied on most for financial services information

Bank customer

s

Credit union

customers

A newsletter from your main financial institution

16% 39%

Friends or family 23% 26%

Online news 16% 16%

Newspapers 6% 6%

Television 4% 4%

Someone who works at your financial institution

20% 7%

Other 8% 1%

Don't know or refused 6% 1%

Online social media, such as Facebook and Twitter

1% 0%

Q11A. Which source do you rely on most for information about personal financial services, such as checking and savings accounts, loans and mortgages? Which source do you rely on most?

Third-party media

Word-of-Mouth Marketing

25 Trust, Service, Savings – The Power of Message

Still The Holy Grail

• Existing members need to hear/adopt your key messages, then project them

- Members are twice as likely to recommend as their banking counterparts

- Significant number of consumers rely on friends and family for advice on financial institution

- Majority of credit union members have been members for 10+ years

Conclusions

• Key messages matter – you need to have them, and stick to them. It’s up to each credit union to develop its own messages – but from a common framework that supports the industry

• Look for the proof points that support your messages within your organization

• Understand the basics of how messages are received, scrutinized and adopted

• Awareness and Education come first. Differentiation comes second. Call to action comes third.

• Repetition, Repetition, Repetition!


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Questions?

Trust, Service, Savings – The Power of Message Minnesota Credit Union Day at the Capital February...

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