Several years ago, auto industry experts predicted that Tesla would not take root and eventually fail. Little did they know that Tesla was changing the auto industry. How is Tesla capturing the attention of buyers when major car companies have more money, engineers, resources, and industry experience?
Beyond the eco-friendliness and amazing quality of their vehicles, the electric car company is transforming the industry through manufacturing and a direct-to-consumer sales model. Tesla has revolutionized the idea that green cars have to be cheap and tiny; they can be big, luxurious, and expensive. By creating a feeling of exclusivity, Tesla drivers feel unique as they "fuel" up at charging stations. So how can a credit union deliver exclusive service like Tesla?
Shifting the Perception of Financial Institutions
The world of financial institutions has long been seen as conservative, serious, and sometimes boring. While these aren’t altogether bad concepts—since people desire security and credibility for their money—the mindset that people want boring, status quo banking has been shifting in recent years. People want to feel special and be recognized, and credit unions are positioned to do just that.
Strategies to Elevate Your Credit Union's Profile
Results from a Brand Desire survey in February 2012 looked at the brands that 22,000 people across the world most desire and why. PayPal ranked #23 in the U.S. for being approachable and cooperative. Companies like PayPal and Tesla connect with their customers as real people by adopting the following strategies:
- Have Clarity of Purpose
Have an inspiring purpose that goes beyond financial transactions and makes a real difference in people's lives. - Inspire Connections
Focus on winning people's hearts, not just their wallets. - Focus on the Future
Harness technology to help reinvent people's financial lives. - Create Experiences
Use every touchpoint to reinforce your brand’s purpose and personality.
With the right credit union software backing up your purpose, you can elevate your credit union member services and empower your members to feel part of your exclusive club.
Differentiating Your Credit Union
In her book, "Different: Escaping the Competitive Herd," Harvard professor and marketing expert Youngme Moon offers advice for credit unions looking to differentiate themselves. Simply put, your credit union doesn’t need to be better; sometimes it’s about creating something different. Credit unions won’t stand out if they go toe-to-toe with competitors just to 'keep up.'
Moon says, “The ability to compete, in turn, is dependent on the ability to differentiate from competitors.” Credit unions must develop a true differentiation strategy. Here’s a hint: it’s not service (everyone says that). What makes your credit union different? You must be able to answer that question in 15 words or less without using the words “people,” “service,” or “community,” as these are terms every credit union will use and are not differentiators.
Moon continues, “Just talking about differentiation gets you nowhere. You must be willing to make hard decisions. If you are competing on experience, then invest in your branches; if you are competing on members/service, then invest in your employees; if you are competing on price, then invest in efficient operations.” For credit unions, competing on exclusivity may be key to winning, but simply stating you are exclusive isn’t enough. As Moon writes, "Don’t expect differentiation to just happen: pay the price.”
Connecting with Members
Credit unions realize there is room for improvement when it comes to connecting with members to create a unique and memorable experience. How each credit union accomplishes this will depend on its purpose and ability to connect with members and stand out from the competition.
