Mark Arnold :: Blog

We often talk about onboarding new members: getting them to use more products and services per household during their first three to six months of membership. Every credit union serious about member retention should certainly be using that strategy. But there is another key group we should consider for an onboarding strategy: your new employees.

I’m currently reading Grow, by Jim Stengel. It is an excellent book about how ideals power growth (in other words, “companies with ideals of improving people’s lives at the center of all they do outperform the market by a huge margin”). It’s an excellent book and I’ll write a complete review in the coming weeks.

But one principle from the book is already striking: companies that grow put as much emphasis on their employees as their customers. One tactic they suggest is to onboard your new hires. They cite Method, a household cleaning products company, as an example. “Method’s leaders decided that they needed to put as much energy into onboarding new employees as they did into hiring them…..which starts with a welcome package delivered to their home and continues with a sixty-day personalized plan.”

Your employees will make or break your credit union’s brand. Since your employees must live your brand every day, you want to ensure they have a positive first impression about the credit union. In other words, brand your culture and your credit union to your new hires.

Here are some suggestions about how you can onboard your new employees:

• Take them to lunch the first day—On my first day of work at one of my prior credit unions, someone stole my brown bag lunch from the employee break room. That wasn’t exactly a good first impression (“what had I gotten myself into?”). That first day on the job is stressful; lighten it up with a lunch with the new person.


• Have the CEO informally visit with them within the first week—No matter your credit union’s size, the CEO can be an intimidating position for new people. When the president of an organization takes time from their busy day to talk with a new hire, it sends a strong message: you value them as a person.


• Connect their job with a higher purpose—Some jobs in a credit union can be boring. Be sure to let them know that what they do every day impacts members’ lives. Most people don’t want to just punch a clock: they want to make a difference. Show them how working at your credit union does just that.


• Give them free logo wear or t-shirts—Everyone loves free stuff; especially free shirts or t-shirts. Even if costs you a few bucks, the good will you earn is priceless. Giving them logo wear lets them know they are part of your team.


• Send them a hand written note to their home—We often suggest the hand written note as a tactic to use with new members. It’s also a great tip to implement with new hires. After a month or so, the new employee may need a word of encouragement. Sending them a personal note that comes to their mailbox (not inbox) demonstrates that you care about them.

These are just a few suggestions. We all know employees impact members (positively or negatively). The better your new employees feel about your credit union, the more likely they are to live your brand.

It’s a hard topic for credit unions and certainly a touchy one these days: executive compensation. None the less, executive compensation is a strategic issue many credit unions must address. I had the opportunity to visit with Alec Berkman, president of Executive Compensation Solutions. They recently published their yearly survey on credit union executive compensation and benefits. Below is my Q&A with Berkman.

(1)    ECS recently published an employee and executive compensation & benefits survey for credit unions. What were some of the trends you identified?

It still looks like about 30-40% of credit union CEOs will be retiring in next five to seven years. That is a big number and credit unions and boards must be prepared for that shift. Many of them are Boomers.  Another 20% of credit union executives change positions for perceived greener pastures every year. There is more movement across the country than most people would imagine.  Evidently, there is sustained demand for higher levels of talent.

We’ve also seen a slowing in the growth rate of base compensation. We saw reactionary moves in 2009 and 2010, where some plans and salaries were frozen. Those were tactical rather than strategic decisions. Prior to 2008 we were seeing a seven and eight percent growth in base pay; it has now slowed to about four percent.

For awhile we were seeing a narrowing of the gap between bank and credit union CEO pay. However, bank CEO compensation is accelerating again. So now the gap between banks and credit union is widening.

We are also seeing a shift in credit unions where more CEO compensation is “at risk” or tied to performance. Executives will get paid when they hit credit union goals.

(2)    When it comes to CEO compensation, are there pay differences by gender? Why do you think that is?

This is the first year we looked at the gender issue. There are wider opportunities for women in credit unions than in other industries. There is also significant disparity between male and female credit union CEO compensation. When you look at credit unions under $50 million in assets, over 70% of the leaders are women.  When you look at credit unions over $2 billion in assets, women occupy 30% of those positions. However, the glass ceiling seems to be in place.  Women on average earn between 75% and 80% of what male CEOs make.

(3)    From a compensation standpoint, what are some things credit union boards can do to keep their CEO?

Boards have a primary responsibility to think about executive compensation in ways that align the interests of the executives and the credit union. A credit union board and its executives are well served by setting expectations in advance and benchmarking along the way.

(4)    If a credit union board and its CEO have differences when it comes to compensation, what do you suggest they do?

The best approach is to set mutual expectations in advance. From there, establishing the right communication is critical. Professional advice plus accurate and relevant data is important in making good decisions. Transparency is essential.

(5)    In this day and age with increased scrutiny on executive compensation and the economy, why should credit unions be concerned with rewarding their CEO and executives?

We are still in a competitive marketplace where you want to attract the best and the brightest people. You want to reward them meaningfully, but reasonably. The compensation program also has to be affordable. It has to tie to credit union goals and performance. A good team has a deep bench. Having a talented executive team in place probably leads to more success.  Optics are an important consideration. One way to explain the reasonability of a CEO’s compensation is to look at the ratio of compensation to member. For example, if your CEO’s total compensation is $500,000 and you have 200,000 members you are only spending $2.50 per member or $.20 per member per month. However, having a compensation philosophy and a methodology for establishing CEO compensation is at the core of the issue of fairness and increased scrutiny.

(6)    What are some ways credit unions can reward executives and the CEO?

There are four components of executive compensation: base salary, short term bonuses, long-term incentives (retirement/retention) and perks. Most credit unions overlook the effectiveness of the long-term piece. You need to coordinate all four areas and all four areas should be linked to sustained achievement.

(7)    How can credit unions use the ECS survey?

Good decisions come from good information. Our survey can help guide them through a consulting process that is matched to their decision process. While our survey, which we provide free to anyone who wants it, is a great tool, you have to remember the analogy of building a house. You don’t build a house with just one tool: you use multiple tools. Credit unions should also use additional data from Callahan, the ABA survey, CUNA survey and CUES survey. Usually, a pattern of competitive compensation information will emerge.

(8)    How does ECS help credit unions with their services?

We have constant engagement with our clients. While the decision process belongs to the client, we can help the credit union develop or revise their compensation philosophy and evaluation methodology. We look at peer groups, regionalization, other industries and succession plans for credit unions.

(9)    What business books should every credit union professional read?

The Ultimate Question, by Frank Reichheld; Answering the Ultimate Question, by Richard Owen; Funky Business by Kjell Nordstrom, Merge, by William McDonald; Think Big, Act Small, by Jason Jennings and The Fifth Discipline by Peter Senge.  In my opinion The Fifth Discipline is the best business book ever written; it’s about how to build personal mastery and a growth focused culture.

Executive Compensation Solutions (ECS) is a client-focused consulting firm that brings innovative thinking to compensation and benefits issues with an exclusive focus on the credit union movement.  Their staff has a broad depth and range of experience that provides a comprehensive approach to the credit union challenge of attracting, retaining and rewarding key value creators while aligning the goals of the credit union and itsexecutives and its membership.  For more information, you can visit their website or download a copy of their Credit Union Executive Compensation Survey.

Note: This article first appeared in the Texas Credit Union League’s Lone Star Perspectives.

All credit unions want more members. And all credit unions want satisfied members. But what if credit unions had members as advocates? Member advocacy is far more important than member satisfaction. According to Business Week, 60-80% of defecting customers described themselves as “satisfied” or “very satisfied” just before they left a service provider.

As Jeffrey Gitomer, best selling business author, says, “member satisfaction is worthless, member loyalty is priceless.”

According to a study by CFI Group, 90% of credit union members are willing to recommend their credit union to a friend or colleague and 76% have already done so. So how do you turn your satisfied members into advocates? Here are five simple steps to help you start the process.

Connect with Your Membership

Your members want and need to know that they are more than just a deposit, loan, account number or yet another car in the drive-through on a Friday afternoon. Reach out to them. Learn their names and use them. Demonstrate real interest in their lives, their families, their jobs and other key areas. Hand-write thank-you notes on loans. Reply to their posts on your credit union Facebook page. Don’t fall back on communications just for promotions. Engage with your membership on a regular basis and develop an interactive relationship.

Demonstrate Value

We all know the usual talking points. Credit unions exist not to serve shareholders but their member-owners. Lower rates on loans, higher rates on deposits. Friendlier service. The list goes on. While it’s a valid list and one of which you can be justly proud, do your members know about it? Do you promote it in more than the usual rote way? Advocate members need to know exactly what bang they are getting for their buck, so tell them! Show them, in dollars and cents, what they save with your credit union versus the competition. Include loans, savings and deposits, credit cards and fees.

Respond in a Timely Manner

When members ask questions or make comments, respond as quickly as possible. Nothing is as loud as the silence of an unreturned call or unanswered email. Make your answers succinct and, most importantly, honest. If you do not know the answer immediately, be honest and say so, with the promise of a reply as quickly as possible. Don’t let voicemails, emails, and social media messages fade away without responding.

Improve by Using Their Feedback

The best source of information regarding levels of satisfaction and dissatisfaction comes straight from your members. Harness their potential to improve your credit union. When you receive a member compliment, share it with your staff and the membership at large to encourage a culture of shared success and achievement. Track comments (suggestion box, surveys, emails, social media, etc.) and act upon them. Members appreciate it when you hear their voices and act in response to them.

James Robert Lay with PTP New Media says, “Think of this: a member has an experience with your credit union online, over the phone or through live chat. When they finish the transaction, they are asked to go to a microsite to complete quick and simple survey. If they rate their experience as positive (4 or 5 on a scale of 1-5) then the "thank you" page could ask the member to refer friends or family. If the member rates their experience as not so hot (1 or 2 on a scale of 1-5) then the "thank you" page would not want to ask for the referral but display a more empathetic message. There is huge potential for credit unions to invest in member feedback and referrals as a way to grow loans and membership.

Make Every Member Interaction Remarkable

Strive to make every touch-point with your members one to remember. Every smile counts, whether seen in person, heard on the phone or read in an email. Empower your staff to go above and beyond in the pursuit of member service excellence. See a member celebrating an anniversary, engagement or birth in the newspaper? Take time to congratulate them. Notice a member in the parking lot with a dead car battery? Have a pair of jumper cables handy and help out.

Conclusion

In today’s hyper-competitive world, merely satisfying your members isn’t enough to keep them. Your competition is willing to do a lot more to earn their business and your credit union must be ready and willing to up its game. A great way to start this process and jump-start your next membership drive is by creating advocates out of members.

“Younger, younger, we must get our credit union younger.” That is a mantra many credit unions are chanting these days. While attracting Generation Y members is a critical strategy, credit unions must not forget a core constituency: old people. For the sake of this post, I’m not going to define “old.” I’m guessing some folks will consider anyone over 30 “old” so I’ll leave the defining to you. However Matures are typically between the ages 69 and 86.

Who are you calling old?

First of all be careful how you address old people in your marketing. They don’t want to be called “seniors”—until they go to Denny’s or the movies! More than likely, many of your credit union’s board members are from this generation.

This demographic still has plenty of things that are a fit for credit unions. Their deposits serve as a base for loans to our younger members. They are also planning on transferring a huge amount of wealth to their children and grandchildren. Products like investment services, reverse mortgages, RV loans and vacation loans (to take their grandkids to Disney) are all good options.

Tips to reach Old People

Here are a few suggestions on ways to market to the Mature generation:

1)      Make branch printed material larger—One of the worst parts about getting old is failing eyesight (not that I would know anything about that). Make sure your rate sheets aren’t printed so small that someone can’t read them.

2)      Emphasize savings—Don’t assume you have all your Mature members’ money. One friend recently recounted the story of his older mother letting him know she had $5,000 cash in her freezer for safe protection.

3)      Remember investments—Obviously, they are a good target for estate planning because of the wealth transfer issue. Having a CUSO for investment services can generate additional non-interest revenue for your credit union.

4)      Reward loyalty—This generation tends to be your most loyal members. Relationship building through a high level of personal service is fundamental.

5)      Don’t write off technology—They do indeed have some level of sophistication with technology. Because they have now discovered pictures of their kids and grandkids they are using computers to connect with their family.

6)      Treat them with respect—This is perhaps the most important thing your front line staff can do. Use the words “Yes, sir” and “No, mam.” We tend to de-value old age in our society. Give them the respect they’ve earned.

7)      Ask for family referrals—Be sure you know who their kids and grandkids are. Getting to know the entire family will help when the wealth transfer issue becomes a reality. One credit union actually told a story in their newsletter about one of their Mature members who had over 20 grandchildren: all of whom were members of that credit union.

So yes, your credit union should certainly “go young.” But not at the expense of reaching the old.

Tons have been written about Steve Jobs, especially since his unfortunate death last year. However, there is nothing more comprehensive on the legendary innovator and marketer than the biography Steve Jobs, written by Walter Isaacson. It’s a must read for every credit union executive.

While reading a biography may sound boring, I can promise you this one on Jobs is anything but boring. In fact, I couldn’t put it down. Most importantly, there are many points in the books that are extremely relevant for credit unions—especially those trying to compete in the commoditized and hyper-competitive financial services arena.

Here are some quotes from the book that have application for credit unions:

• “His argument was that a great engineer would be remembered only if he teamed with a great marketer.” Is marketing viewed as expense or an investment at your credit union? Jobs “got” the importance of marketing, and so should your credit union’s board and management team. Your credit union won’t last long without great marketing (note: not just marketing, great marketing).

• “Job’s primary test for recruiting people in the spring of 1981 to be a part of his merry band of pirates was making sure they had a passion for the product.” If your employees aren’t passionate, get rid of them. That may be harsh but it’s true. Your credit union will only succeed if you hire and retain passionate people at every level of the organization. Hire for passion and train the rest.

• “On the day he unveiled the Macintosh, a reporter from Popular Science asked Jobs what type of market research he had done. Jobs responded by scoffing, ‘Did Alexander Graham Bell do any market research before he invented the telephone?’” Jobs was notorious for trusting his gut. More than likely, you know your members and market better than anyone. Trust your gut—and don’t get buried in reams of data.

• “Jobs held a freewheeling three-hour meeting every Wednesday afternoon with his top agency, marketing and communications people to kick around messaging strategy. ‘There’s no CEO on the planet who deals with marketing the way Steve Jobs does,’ says Clow. ”How involved is marketing in the “C” level suite of conversations at the credit union strategic dinner table? You need to spend hours (yes hours) every week reviewing not just your loan and deposit strategy, but your marketing and messaging strategy.

• “One of Job’s great strengths was knowing how to focus. ‘Deciding what not to do is as important as deciding what to do,’ he said. That’s true for companies, and it’s true for products.’” The recent blog post, “What Should Your Credit Union Stop Doing” dives into this point. Too many credit unions are all over the board with their projects and priorities. Maybe it’s time to reduce and not add to your project list.

• “The store will become the most powerful physical expression of the brand.” This point goes to the importance of retail branding. How your branches look and feel matter. Your credit union branches are not just where your members conduct their transactions: your branches are part of your brand.

We often think of Steve Jobs as an innovator (and he certainly was). So you might think reading a biography on Jobs would teach credit unions about innovation. While that’s certainly important, you will also learn about marketing, hiring, research, strategy, focus, and branding.

It’s easy to say credit unions should be more like Apple. While there may be some truth in that statement, a deeper dive into Apple’s culture is also enlightening. Reading Steve Jobs is a great step credit union leaders can take in improving our own organizations.

Creating, writing and designing an annual report is a yearly rite of passage for most every credit union marketer. We spend long hours developing just the right visual. We make sure all the CEO and Chairman speeches are crafted with care. We double check the financial numbers to ensure they are correct. We often print the report on special paper to make it fancy.

Maybe it’s time we ditch the traditional annual report. What should you do instead? How about turning your annual report into a video this year?

One credit union did just that last year with tremendous success. Bossier Federal Credit Union (Louisiana, $100 million in assets; 20,000 members) created a video they used at last year’s annual meeting.

“The traditional annual reports are extremely expensive and have a shelf life of 30 minutes,” said Shawn Temple, Bossier FCU’s chief operating officer. “A video is more engaging. It is also an entertaining way to share information.”

You click on the image/link below to see Bossier FCU’s two minute and 20 second annual report video:

Replacing a printed annual report with a video one offers several advantages. You can post the video to YouTube, use it on your website, send it to members via e-mail, incorporate it into your social media efforts and show it to current and potential select employee groups.

“Video offers the ability to tell a story,” adds James Robert Lay, president of PTP New Media. “You can also have fun with video and show your creativity.”

Bossier FCU received a great deal of positive feedback from their membership. “We didn’t have one person ask for a paper version,” Temple said. “Ultimately members just want to know how your credit union is doing. You can answer their questions and do it in an entertaining format.”

Temple’s final suggestion about a video annual report rings true. “Tear down those arbitrary walls,” he says. “Just because you’ve always done it one way doesn’t mean you have to do it the same way.”

So maybe it’s time credit unions stop printing their annual reports the same way and produce a video annual report instead.

The year 2012 has finally arrived. Some prognosticators have predicted end of the world disasters because of the Mayan calendar. While your credit union 2012 marketing calendar is not filled with disasters (hopefully!), it is probably already full with a complete list of tasks to accomplish this year. But are they the right tasks?

Some of the items listed below are strategic (because marketing is such a strategic priority) while others are tactical and practical in nature. Please feel free to let contribute your own ideas as well!

(1)    Own your three mile radius

Should your credit union advertise on billboards, bus ads, radio, TV, or other mediums? That is a common question. One of the best marketing strategies is not necessarily medium driven but geographic driven. With all of your branches, draw a three mile circle. Everything inside those three miles, you should “own.” Do community events there, advertise in those locations, work those businesses. The reality is most people will not use your credit union outside those three miles so put your marketing emphasis inside those loops.

(2)    Conduct a marketing audit

How good is your strategic and tactical marketing efforts? The reality is we often need an outside perspective and help when it comes to our marketing. We are just too close to it day in and day out. The post “How a Marketing Audit Improves Your Credit Union” gives more details on this key task.

(3)    Attend Marketing Management School

Every marketer must learn. If you are not learning you are not growing. While marketing conferences offer outstanding sessions, I also encourage serious credit union marketers to take their knowledge to a deeper level. One school that is ideal for this is CUNA’s Marketing Management School. The three year program does a deep dive into all things with credit union marketing (branding, promotions, media buying, social media, retail branding, leadership, engagement, etc.).  If you want to improve your marketing skills, this is the school for you.

(4)    Drill differentiation

Differentiation rules. But it tends to die at the staff level. “What makes your credit union different” is a question your staff must be able to answer. Can they? Credit unions that are successful are ones that have found their niche. Your brand plan should drill down into differentiation; stop being just like your competition.

(5)    Use more technology in your marketing

Technology is changing everything and it is certainly changing marketing. Whether social media, instant online member applications, live web chat, mobile marketing, e-mail campaigns or a thousand other technology tools how we market to our members must now involve technology. For more information about how to incorporate technology into your marketing efforts, check out the white paper “Online Marketing Tactics” from CUNA’s Marketing and Business Development Council.

(6)    Offer at least two new products

When was the last time your credit union offered a new product or service? Stop doing the same things from previous years and offer something innovative. Check out the Filene Research Institute for some cool ideas. Or try offering a Kasasa checking account if you want to spice up your checking offerings. Regardless, just do something new in 2012.

(7)    Target, target, target

Stop trying to be all things to all people. That is a mistake many credit unions are making. It’s hard for credit unions to target because they feel they have to offer all their products to all their members. No, you don’t. If you truly want to improve your credit union this year, then truly focus. It might be moms, it might be young people, it might be Matures, it might be communities, it might minorities, it might be small businesses. But it better not be all of those!

(8)    Improve your leadership skills

Marketers are leaders. Marketers also need to lead their credit unions. One of the best things you can do as a credit union is devote time to developing you leaders. As John Maxwell says, “everything rises and falls on leadership.” If you don’t have strong leadership in marketing, then you won’t have strong marketing at your credit union. The post, “Real Authentic Leadership Drives Success” expounds on this point.

(9)    Train your staff on generational issues

Generational issues are very much on the forefront of credit unions these days. Most front line staff are from Generation Y while most members visiting a branch are older Boomers or Matures. Can you say “generational clash?” We must train all staff on the values each generation offers and how they can connect with someone from a different generation. Generational training improves sales and services skills tremendously.

(10) Use video

Video and its importance continues to increase. According to vzaar.com, three billion people watch video every day. Are they watching your credit union’s videos? Some credit unions are even ditching their annual reports and replacing them with video annual reports (I’ll be blogging about this more in an upcoming post).

(11) Drop Yellow Page advertising

Okay, I’ll going ahead and say it. Ditch your Yellow Page advertising. When was the last time you looked up anything in the Yellow Pages? It is an unnecessary expense. Use those advertising dollars elsewhere.

(12) Don’t forget about old people

There is a rush in credit union land to get more and more young members. Everywhere you turn there are articles (including several of my own) about how credit unions can attract Generation Y members. While that is extremely important and should be a strategic focus, let’s not forget about the importance of serving our older members. Their deposit dollars are the base we use to loan to younger members. Plus, there is about to be a huge transfer of wealth between the generations. Get to know your older members—and their children.

2012 is going to be a great year for credit unions, especially those that complete the above tasks. But those are just a few suggestions. What other tasks do you think credit union executives should add to 2012?

“The supreme quality for leadership is unquestionably integrity. Without it, no real success is possible,

 no matter whether it is on a section gang, a football field, in an army, or in an office.”

- President Dwight D. Eisenhower

John Maxwell once said, “Everything rises and falls on leadership.” As your credit union embarks on 2012 that means your credit union will rise and fall this year on leadership. While loans, marketing, operations, assets, etc. are important, your credit union’s ultimate success is based on one word: leadership. That means leadership at the board, executive and management level. But what is key when it comes to leading your credit union? True leadership is real and authentic.

If you ever want to feel overwhelmed by a sheer mass and quantity of books in a single genre, check out the leadership section of your local bookstore. It’s almost hard to not find a “leadership skills” book by anyone, be they obscure celebrity, aging sports star or retired politician. Well-known leadership authorities like John C. Maxwell, Stephen R. Covey and Dale Carnegie share shelf space with an ever-expanding pack of authors anxious to crack the top ten.

Whether leading an entire credit union as CEO, heading multiple departments as an SVP/EVP, leading a single area as a VP or managing a department or branch, anyone in a position of leadership may scratch their head and wonder aloud “just what makes real and authentic leadership?”

Last year, Heart of Louisiana Federal Credit Union addressed leadership as a major strategic initiative. As part of their overall training program, I conducted a leadership workshop with all of the credit union’s executives and managers. We then conducted routine follow-up sessions throughout the year to address specific leadership skills.

“We saw tremendous strides in our leader’s skills in 2011,” said Cindy Beauregard, Heart of Louisiana FCU’s CEO. Because leadership is an ongoing process, we are working once again in 2012 to continue leadership development at Heart of Louisiana FCU. “As our leaders grow, our credit union grows,” Beauregard added.

While fifty different people will typically have fifty different answers about what makes a good leader, we can point to several broad ideas that encapsulate the idea. As your credit union moves into 2012 and beyond, members and employees will look to senior staff and board members to possess these traits in good measure.

• Possessing Integrity and Character


• Creative and Passionate


• Inspirational


• Humble


• Committed to Excellence

Perhaps most importantly, an effective leader must serve as living, breathing example of the ideals he espouses. German philosopher Albert Schweitzer put it this way: “Example is not the main thing in influencing others. It is the only thing.”

A real and authentic leader can be a president, a pope, or a prime minister. Just as crucial and in equal demand are leaders from the ranks of parents, teachers, clergy and others. While we may never be able to fully agree on every trait an individual must possess, and in what measure, to earn the title “leader,” it is obvious that, in order to remain viable and thriving, the credit union movement must continue to attract and retain such qualified men and women

“The old style advertising that works very well with boomers, ads that push a slogan and an image and a feeling, the younger consumer is not going to go for.”

—Business Week

Our society continues to change with each generation. We’ve gone from Pearl Harbor to Pearl Jam; from stern parents to Howard Stern; from Neil Armstrong’s walk on the moon to Michael Jackson’s moon walk; and from American Bandstand to XM satellite radio. Our society and culture have changed.

But what does that mean for credit unions? Actually, quite a lot. There is a huge generational gap that exists both with our membership and among our employees. Credit unions that embrace and leverage these generational differences will succeed. Those that ignore the generational implications risk becoming obsolete.

Various dates are used with each generation. For example, one source might indicate Boomers were born in 1960 while others say it was 1964. For the purposes of this post, we will use the dates from William Strauss and Neil Howe. They are the leading demographers of our country and use dates associated with societal change rather than parental birth patterns.

Strauss and Howe break the generations into the following groups:

• Matures—born between 1925 and 1942 (between the ages 69 and 86). Matures are also known as the Silent Generation and the Greatest Generation. There are currently 27 million Matures (9% of the population). You never want to call this group “seniors” in your marketing material. They don’t want to be called seniors—until they go to the movies!


• Baby Boomers—born between 1943 and 1960 (between the ages 51 and 68). Baby Boomers are also known as the original “yuppies” (the young upwardly mobile professionals). There are currently 64 million Boomers (21.5% of the population).


• Generation X—born between 1961 and 1981 (between the ages 30 and 50). Generation X is also known as Baby Busters, Slackers and Latchkey Kids. There are currently 89 million Xers (30% of the population). We just blew away a myth. The myth is that there are more Boomers than Xers. That is actually not true (of course, it’s because the Boomers are dead from the drugs they took in the sixties—just kidding!).


• Generation Y—Born between 1982 and 2003 (currently between the ages 8 and 29). Generation Y is sometimes referred to as the Dot Com Generation, Echo Boomers or Millenials. Depending on where you mark the demarcation line, there are 78 million in the Gen. Y group (26% of the population).

Here are several practical steps credit unions should take regarding generational issues:

(1)    Pull the current age of your existing membership base and put them in these generational buckets—This gives you invaluable data about your credit union. If the majority of your members are in the Mature or older Baby Boom demographic, where will your credit union be in five or ten years?

(2)    Conduct generational training with staff—Your front line staff tends to come from Generation Y, while your members who conduct branch transactions tend to be older Boomers or Matures. Can you say “generational clash?” One credit union actually became one of the top ten credit unions in the country in membership growth by focusing on generational training with their staff.

(3)    Focus on generational issues in your strategic planning session—Every credit union should conduct strategic planning on a yearly basis. When doing your session this year, spend time examining these generational issues and the many strategic implications.

(4)    Examine your brand—Does your brand resonate across the generations? What is your brand vision, mission and message?

(5)    Determine your targets—Your credit union cannot be all things to all people. And it can’t be all things to all generations. The best credit unions focus on particular niches.

(6)    Serve the generations uniquely—Take the above information and customize talking points your front line staff can use with each group (for example, grandchildren CDs for the Mature generation).

(7)    Bridge the generations—While separating the generations is helpful, you also want to look for ways to bring the generations together. This could be in the form of wealth transfer or college planning workshops.

(8)    Update your marketing—Make sure marketing is not “old school” (unless your primary target is Matures). Do the images in your newsletters and brochures match your target generations?

(9)    Conduct generational focus groups—One of the best ways to research the generations is to dialogue with them. Focus groups can provide keen insight on what is important to each group.

(10)Show each generation value—We are biased toward our own generation. Yet each generation brings unique value to the credit union. We need each generation to grow our credit unions.

For more information about credit unions and generational issues, you see read two longer pieces on the subject I wrote recently. One appears in the December issue of my e-zine. The free e-zine gives more details about marketing insights for each generation. You can also read a piece on CUInsight’s Community Page, American Bandstand to Satellite Radio: Generational Marketing Improves Results.

As the credit union movement continues to grow and mature, much of how it develops will hinge on its look and feel. Although credit union marketing and communication professionals have always taken a lead role in this effort, the input and value of graphic designers cannot be overlooked. While many credit union marketers are superb organizers, idea-generators and brand cheerleaders, the special creative fire that fuels art often comes from graphic designers.

To get a better feel for graphic design and future credit union marketing efforts, we sat down with Kenny Kent, creative guru and owner of Kent Design. Kent worked for a credit union marketing ad agency from 1988 – 2002 before starting his own business and has served the needs of credit unions for close to 25 years. His answers, thoughts and input offer a unique look at this important element of marketing.

What do you see as key elements of effective credit union graphic design?

Credit unions are poised at a terrific time to make the most of good graphic design, especially with the recent negative media and consumer attention focused on banks. I see credit unions as really moving up the visibility chain in the public eye and looking as professional and on-message as possible is crucial. If there was ever a time when bank customers are apt to make a change and a time for credit unions to put their best collective foot forward, it’s now. The way the public first perceives any company or organizational message is the pivotal moment between gaining or losing interest and trust. Credit unions need brand consistency, brand appeal and brand awareness. Graphic design really leads the charge in that direction.

What must credit union marketing and communication professionals look for in effective graphic design?

The elements at play here are really quite simple. Look for visuals that pop, coupled with an offer that compels action and copy that adds to, not detracts from, all of the above. We still face the challenge of wanting to put too many words in our design. I like to point out the powerful simplicity of Apple “i” products, like the iPod, iPhone and iPad. The design is brilliant in its simplicity. In a crowded electronics store, you’ll automatically gravitate towards an Apple product poster and know what it is selling, without need for loads of attention-draining copy. Less really is more and credit union ad design benefits from this same maxim. Cutting through everybody else’s clutter is the goal here.

What concerns do you have for credit union graphic design moving ahead?

With deference to the points we’ve already discussed, I will point out an additional challenge, one shared by both graphic designers and the credit unions they serve. As artists, graphic designers are susceptible to falling too much in love with their own creations. Yes, we are paid for our talents, abilities and vision, but we also must know when to rein in the urge to “own” our creations. Credit union marketing teams also have a vision for what they want and are usually the best gatekeepers of their particular membership base. The two camps can always work harder towards producing the best of both worlds: effective graphic design that looks great and accomplishes the marketing goal for which it was commissioned.

Do you have any other thoughts on the future of credit union graphic design?

The buzzword here continues to be technology. Everything is tech-driven and graphic design is no exception. While we’re not writing a lot of complex code (we save that for the IT folks) we are seeing more and more demand for design geared from the ground-up for use on websites and smart phones. We’re also seeing a corresponding drop in demand for traditional printed materials. For example, as more focus goes into, say, smart phone apps and website ads, less is left for wall posters and flyers. I think what we’re seeing is the gradual shift to an e-commerce society as reflected by the demand of credit union membership. That credit union marketers are responding to this demand is a good sign for the future health and growth of the credit union movement.

You can reach Kenny at kenny@kentdesigninc.com or (512) 312-4956.