ProjectNewAge.com Blog

Don’t Give Consumers The Wrong Idea. Protect Your Advertising Budgets!

When budgets are tight, marketing dollars are many times the first thing to go.

But new data from Ad-ology, published by eMarketer, suggests that cutting advertising budgets could be a bad decision, especially for banks.

It seems that many consumers gauge a company’s health by how often that company advertises. In fact:

• 48% of consumers believed the bank was struggling when they saw a drop-off in advertising from the institution
• 12% of consumers believed the bank may not be in business any longer

Conversely, for those banks that advertised frequently, consumers saw them as committed to business, being competitive or doing well.

This is important data to keep in mind when you are planning your Q4’09 budgets. You want to stay top-of-mind with your consumers!

What’s In A Name?

AdAge has an interesting article on the banks that have renamed their institutions and are challenging the “long-held belief that bank marketing is serious business deserving of serious messaging.”

With all the negative news coverage on bailouts, the mortgage crisis and recessions, big financial brands have lost some of their equity, and are choosing to rename their institutions. Take for instance GMAC’s recent transition to Ally:

But some banks are becoming very darning in their renaming strategies like Redneck Bank, the Internet banking division of Bank of the Wichitas,, who touts it’s “where bankin’s funner.”
 

Or Tightwad Bank, the new name of Reading State Bank’s full service branch in Tightwad, MO. Makes pretty good sense, huh?

In the article, president of Strategic Name Development, William Lozito advises, "Don't name a bank to capitalize on a short term phenomena. Business cycles come and go, and this one will pass too."

What do you think about these naming strategies? Short sighted and uniquely focused?

Teaching Financial Literacy Isn’t A Game…Or Is It??!

In a 2008 survey by the Jump$tart Coalition, high school seniors scored 48.3% on a 31-question exam testing financial literacy—the lowest score ever (since the survey began in 1998). Plus, only 7 states require a personal finance course to be offered in high school.

Our kids are unprepared and it’s especially nerve-racking in these difficult economic times. That’s why it’s so critical that credit unions help Gen-Yers learn about smart money management. But how do you get this finicky bunch to get the message?

What about video games?

Statistics show that video games are one of the leading forms of entertainment today. Additionally, video games are used more and more as a learning tool as seen by the success of products like LeapFrog—and parents support it too!

The 2008 ESA Essential Facts About The Computer And Video Game Industry Survey revealed that 65% of American households play computer or video games, and 63% of parents believe games are a positive part of their children’s lives.

Stats like that and personal experience has encouraged a young entrepreneur to start, EverFi, a provider of Web-based software that teaches young adults to manage their money through gaming.

In a recent article with CNNMoney.com, EverFi’s CEO reiterates that “[Financial Literacy]’s not taught in schools or around kitchen tables."

“EverFi offers a five-hour series of Web tutorials that let students explore real-world settings, from the floor of the New York Stock Exchange to a used-car dealership, while absorbing lessons about saving money, earning interest and managing debt. As students acquire new skills, the software encourages them to play a SimCity-style game in which they control characters' spending habits, reaping the rewards of good choices and suffering the consequences of bad ones.”

EverFi partners with schools, universities, community organizations and foundations to reach young adults and also offers private-labeled options as well. Topics in the Web series include:

•    Savings & Compounding Interest: 401Ks and IRAs
•    Understanding a Credit Score and its Implications
•    Understanding Credit Cards and Managing Debt
•    How a Bank Works
•    Taxes
•    Insurance
•    Renting vs. Owning
•    Managing Loans
•    Investing Overview: An In Depth Review of Trading and How the Stock Exchange Works
•    How the Federal Reserve Works
•    Consumer Fraud and Protection

How could your credit union incorporate such a vehicle into your member marketing efforts?

To find out more about EverFi, visit www.everfi.com.

Are You Ready To “Dump Your Bank?”

That’s what Colorado United Credit Unions are asking consumers with a simple, new site at www.dumpyourbankcolorado.org.
 

On the site, Colorado United contends that you don’t hear much from your local credit union because they are not-for-profit and don’t waste their members’ money on massive advertising budgets.

Rather they created this site to educate consumers on the differences between banks and credit unions, and invite consumers to “dump your bank.” They have even put together an ONLINE “Switch Kit” to make the transition easy.

Check it out at www.dumpyourbankcolorado.org.

New Research To Help Credit Unions Attract Young Adults!

Inspired by PSCU Financial Services, the Filene Institute, a not-for-profit research organization dedicated to the analysis of issues affecting the future of consumer finance, has just released a new study:

Attracting Young Adults: What Do We Know About Their Use of Financial Institutions and Payment Behaviors?

As we hear over and over again, the 18–34 year old demographic represents the next generation of credit union borrowers and savers. However, Credit Union National Association (CUNA) reports that since the mid-1980s credit unions have struggled to convert this demographic into full- service members.

Understanding what is different about this new generation versus older generations could be the key. This study looks to answer two critical questions:

• Which financial institutions do young adults (ages18–34 years) most frequently use and why?
• Which payment instruments (e.g., credit cards, cash, checks) do young adults use for specific types of purchases (e.g., bills, groceries, eating out)?

And now all PSCU Financial Services member credit unions can access this report for FREE!

Just visit www.projectnewage.com and click “Research” under “Gen-Y Resources.” Then, enter your contact information to access the report.

Add this critical data to your marketing plan today!

Twitter Is To Social Media As Credit Unions Are To Financial Services?!?!

Sounds like an S.A.T. question, right? Well, Tim McAlpine, President and Creative Director of Currency Marketing, the company well known for developing the Young & Free Program, recently guest authored an interesting post on CUES Skybox about the topic.

In the article, Tim talks a little about the new celebrity rage surrounding Twitter and lists a few compelling reasons why Twitter and credit unions are pretty similar:

1. Twitter has a very simple offering that you can't find anywhere else.
2. Twitter has embraced collaboration.
3. Twitter connects its members.
4. Twitter has removed all barriers to entry.

 

You can check out the article at CUES Skybox. For other great advice and insight on credit union marketing, Tim posts regularly on his own blog at www.currencymarketing.ca/blog.

UFCU is “the antibank.” And proud of it.

United Federal Credit Union has just launched their newest campaign, called “MATTER” targeting 18 – 30 year olds and positioning their credit unions as the alternative banking experience, the Antibank.

At the center of the campaign is the new website, www.theantibank.com, where Gen-Yers can:

• Rant - Share their thoughts on everything financial…from the bailouts to budgeting
• Learn - Find out how to get a student loan, buy a car, manage your money and more
• Shine  - Promote social responsibility and suggest what matters
• And more

To spread the “antibank” message, UFCU has introduced the 2009 Rant Video Kiosk World Tour, visiting college campuses throughout the Mid-West including Lake Michigan College, University of Arkansas and more locations to be added. The video kiosk is described as “a special "confessional" booth where you can create a video post about whatever's on your mind.”

Here’s a sample video:

During the tours, Gen-Yers can also pick up a free t-shirt and express themselves by designing them however they like.

The videos and t-shirt designs are posted on the Antibank website for everyone to see.

You can check out the new MATTER campaign website at www.theantibank.com and read the official UFCU press release here.

Don’t be the last to know. Start monitoring your brand on the social web.

While we spend a lot of time on this site promoting the benefits of blogs, social networks, user-generated content and more, we know there are a lot of credit unions whose marketing plans still do not include social media. Regardless, it’s never been more critical that credit unions, at minimum, start monitoring their brands on the Web and across social media tools to keep up-to-date on what consumers are saying.

In recent headlines, moms took outrage at the new Motrin ads that suggested moms carry their kids to be “fashionable.”  Within hours, the topic was the most Twittered about topic, bloggers called for boycotts, and videos were posted on YouTube condemning the spot.

And just last week, Amazon was accused for removing gay and lesbian literature for their website…which they later explained was just a “glitch” in their ranking systems. However, they were then attacked for their delayed response to the issue and their simplified explanation of the problem.

And if you thought 140 characters were damaging, try a YouTube video that was viewed almost one million times in 48 hours before Domino’s was able to remove it. Last week, two Domino’s employees posted a video of themselves performing less than hygienic acts with food that was later sold to customers. While some have also criticized Domino’s for being too slow and too quiet about the whole situation, Domino’s did post their own video on YouTube to address the unfortunate situation:

We know these stories probably make marketers and their bosses stay up at night, but it's true that the innovations on the Web allow bad (as well as good and sometimes wrong) news to run rampant, very quickly.

So whether you actively participate in social media, it’s very important that your credit union monitor these applications and networks, and respond in a timely manner when necessary.

“Parents of Gen-Y Have Needs Too” Webinar Now Available

As you’ve heard before, many Gen-Yers are very close to their Baby Boomer parents. Often called “helicopter parents,” these parents are always hovering over their kids, micromanaging their children’s experiences to ensure they are protected.

But in these difficult economic times, almost ALL parents are worried about protecting their children’s financial future.

That’s why it’s more important than ever for credit unions to be reaching out to parents (existing parent members and the larger community of parents) to provide them with tools and services specifically designed to help their Gen-Yer’s financial needs. And, that’s especially true when it comes to planning for their children’s college education.

The good news is PSCU-FS has posted a new Webinar for member credit unions titled, “Parents of Gen Y Have Needs Too.” This 50-minute Webinar includes:

• Susan Follick, Gen Y Segment Manager at PSCU-FS discussing GiveMe20.com, a financial education resource for parents
• Roger Lorelle, CEO of Collegiate Funding Solutions and Mike Weber, VP Marketing at Credit Union Student Choice presenting information about their college planning and funding solutions

Whether you have a Gen-Y marketing strategy already in place or are just starting, these complimentary programs can help your credit union reach parents of Gen-Y. Take a listen.

A Big “Thank You” for the Bank

Comparative advertising is not new…the Whopper vs. the Big Mac, PC vs. Mac, Pampers vs. Huggies. Avis Rent-A-Car even capitalized on its Number 2 status over Hertz by employing the tagline “We Try Harder.” As of recent, Dunkin’ Donuts has gone head to head with Starbucks in TV ads and through the microsite: www.dunkinbeatstarbucks.com.

Comparative advertising is usually considered an “underdog’s game.” And with the economic downturn, isn’t it about time that credit unions get more aggressive and show why they are different? Maybe even add in a little humor?

The Financial Brand has a great article on Canada’s Coast Capital Savings Credit Union’s newest campaign to rally the community and stick it to the big banks.

Coast Capital Savings is collecting signatures for an 8’ by 10’ greeting card that “congratulates” banks for charging Canadians an average of $171 each year in banking fees (or rather $3 billion per year).

They have also created these humorous TV ads to promote their Free Chequing, Free Debit and More Account with people proclaiming their “love” of fees:

Then, check out the www.ilovefees.com website to upload your own commercial and buy “I love fees” merchandise.

One word of caution though when dabbling in comparative advertising, make sure your "jabs" are based on real, factual information that you can support and your members/community can get behind.