CEO & Senior Management Panel Discuss New Economy

On February 12, 2009, during Credit Union Marketing University's Winter Session, our CEO/Senior Management Panel discussed the turbulent economy and the impact on marketing decisions for 2009. Guest speakers were: Michael Poulos, President/CEO, Michigan First Credit Union; Lee Brice, Vice President Member Services, Desert Schools Federal Credit Union; and Robb Scott, President/CEO, Deer Valley Credit Union.

What is the meaning of "being competitive" in this economy?

LB: To us, it's the level of service we give members and it's measured on a weekly basis with 70 different metrics. We call the program, "Members Matter Most."

RS: I feel that we have moved from paying higher dividend rates to being just in the middle of the market and loan rates that used to be lower than the competition are now just in the same range as other competitors. This has forced us to use service to stand out. We have cut out all the little product/service programs that distract us from the focus on service to the members. There is also a need to look a little different, so it helps to have a flagship product, like a high interest checking account or reward program.

MP: We are committed to providing consistent, good service. And, we are continuing to support marketing to keep our name out in the community.

What are you focusing on in 2009 as part of your marketing strategy?

LB: There's a huge amount of noise in the marketplace that makes it hard to get our message out there. We used to have some exclusivity as a closed field of membership credit union. Now as a community charter, we are up against the fact that people can join 16 other credit unions and lots of banks. So, it's a whole new ballgame.

MP: Business accounts are where we are looking to make inroads. Not to nickel and dime businesses with lots of fees, so we can capture their business and grow.

RS: Being restricted due to our capital ratio, we have turned our focus to more grassroots efforts including staff doing outbound calls, branches sending letters to members, and branch managers canvassing their market areas for businesses.

Is there a trade-off of great rates versus great service?

RS: When you add it all up, you have to focus on what you can really do! We use a SWOT analysis to determine what we can deliver best given our resources and membership in terms of rates, convenience and service.

LB: While we try, it's so hard in larger organizations to keep everything focused. We have used a great question in the past to bring ourselves back into focus which is, "What business are we in?" If our decisions are driven more by what will best serve our members, then the credit union will be more successful.

MP: As you go through the year, it is hard to communicate to the board and staff all the things that the credit union does in terms of serving members. For the past couple of years, we created an end-of-year video to show the board all that we do! There are so many things that the video also shows of our impact in the communities we serve. Yet, we remain rock solid in service, measure it and acknowledge that people will never forgive you for bad service.

What 2009 priorities do you have to drive marketing strategies?

RS: There are two areas that we are giving attention to for this year. Business deposits are something we want to attract. And, we got out of indirect lending a while ago so we are trying to emphasize direct lending for our auto loans.

LB: Deepening the relationship with existing members is critical for us this year. Another area that we are focusing on is how best to utilize our business development team. We restructured business development and our reps now are responsible for supporting branches with contacting the businesses in their market areas. Our wrapped Scion vehicles help give us visibility as our business development team is out on the road.

Final words on managing in a challenged economy?

LB: Credit unions have gotten good press and we have a great chance to grab more market share.

MP: We are focused on opportunities to capture people from banks! We are even opening our first grocery in-store branch. This is not the time to pull back, but to be visible and make an impact.

RS: Like I said, we are depending on our staff and their grassroots efforts to build relationships and keep our existing members doing business with us.

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