Something Some CUs Should Stop. Another Some Should Start By Frank J. Diekmann

 By Frank J. Diekmann

Here’s something some credit unions need to stop doing. Now. And here is something else others need to start doing. Now.

As you have likely been reading, CUToday.info has been steadily and consistently reporting on those credit unions that have paid out year-end bonuses/patronage dividends/loan interest rebates for the year-end 2022 season. Those payouts/refunds tracked by this publication now exceed $173 million (we’ll publish a final tally this week).

But as much as those are to be celebrated, some CUs seem to find reason to take unnecessary cheap shots at, basically, the credit union community. One CU, for example, announced its payout in a press release to the media that said, “(Name of CU) is one of only a few credit unions in the country that provides this unique financial benefit.” 

First, that’s untrue. Second, why would you feel it necessary to demean other credit unions or credit unions in general? 

What Some CEOs Say

And there’s another related issue here as more than one credit union CEO has told me over the years is a real pebble in their shoes—their credit unions price their products so that the returns come all year-long. They don’t price higher than they could so they can offer some sort of giveback at year-end. 

And speaking of unnecessary disparagement that benefits no one, I watched another credit union’s TV commercial recently in which it said, “Unlike other credit unions, we are open to everyone.”

Some of the best CUs in the country have limits on their fields of membership and they and their members are doing just fine. But again, that doesn’t matter—unless you’re in a market where credit unions have 100% consumer market share, why would any CU see another cooperative as its primary threat?

Just Common Decency

An old rule of marketing, common sense and just plain decency holds that you don’t make yourself look better by degrading others. That cooperative principle about Cooperation among Cooperatives? I guess they skipped that one.

If your CU is doing this sort of thing, here’s a suggestion: stop it.

Something to Start Doing

Meanwhile, here is something some of you can start doing.

As I noted, CUToday.info has reported on dozens of credit unions that have paid some sort of bonus dividend, loan interest rebate or just a flat amount for being part of a “club” at the credit union. The total amount paid out can range from tens of thousands of dollars by the CU to tens of millions. 

In most cases I will go to the respective credit union’s website to see how they are describing the offer or to get details to further our reporting. And, as you’d expect, many of these CUs prominently display in banner headlines and graphics that no visitor to the site could miss the news of this very tangible benefit of CU membership. Which makes sense, right? You would think so, but...

They’re Awfully Quiet. With Emphasis on Awful.

But there are others that have payouts and refunds and bonuses and…crickets. Apparently, it’s all hush-hush. Membership at these CUs must come with a secret handshake and a special knock on what I can only assume is an unmarked door to the branch. 

And I make that assumption because when you visit these credit unions’ websites, there is nary a mention of the return on the value of membership for either members or prospective members. 

I’ve never been invited to teach at CU Marketing School--as I assume most have things like standards, minimum education levels and the like—but I have learned from the smart people that if you have a market advantage, you have to tell people! The world isn’t going to beat a path to your door if it doesn’t know the door is there in the first place. 

The banks you compete with may pay out bonuses, but those are going to the executives at the top precisely because the bank doesn’t share the profits with its customers. Tell people!

Your members almost certainly hold credit cards from competitors that pay some sort of cash-back or other bonus. (And admit it, you probably do, too.) Those issuers are sending texts and emails and stuffing their home pages with messages highlighting the payouts, even though for most folks the cash-back doesn’t really amount to all that much and, in some cases, can be a wash given the annual fee on some cards. But these companies understand one of the basics of marketing: the target market isn’t coming to you for your message. You have to tell them!

Whattayasay, Coach?

We so often hear from coaches and athletes who were once losing or struggling that they got back to winning and success by returning to the fundamentals. 

And fundamentally, it’s not about what’s wrong with everyone else, it’s about what you’re doing right. So, tell them!

Or, don’t. And we’ll feature you in one of our upcoming reports on CUs disappearing in mergers. 

Frank J. Diekmann is Cooperator in Chief of CUToday.info and can be reached at Frank@CUToday.info. Mr. Diekmann is also author of  several new book, including the brand new “The Last Lyric,” a humorous satire about a murder investigation at the Rock & Roll Hall of Fame in which every line of dialogue is either a classic pop/rock song title or lyric. Available on Amazon, Apple iBook, Barnes & Noble and Smashwords.  Mr. Diekmann is also author of a non-fiction compilation of the very best & worst he has seen and heard in covering more than 500 CU meetings and conferences, “501 Name Tags: How Everything You Need to Know About Business Can Be Learned at a Conference & Forgotten in the Trade Show.” It is available on Amazon, Barnes & Noble, Apple, Lulu, and Smashwords