Last month when I was at the Marketing Association of Credit Unions (MACU) conference, I listened intently to presenter Brent Dixon, who spoke about the need for change in credit unions and how the Wal-Mart model works. He clearly showed how Wal-Mart “bundles” services and opportunities to increase business and obtain greater market share. For those of you who have not been in a Wal-Mart or Wal-Mart Superstore, here is what you will find-everything you can think of! Yes, there are the typical clothes, automotive items and now groceries. Also, you can fill your blood pressure prescription while you are buying new prescription glasses, and grab a bite to eat. You can even do your banking. Wal-Mart knows that, when you “bundle services,” you get more market share. Sure, you discount some items to get a higher margin or bigger revenue slice. And it works.
Brent pointed out that Wal-Mart determined it needed to provide service to customers to get and keep their business. In today’s world, this is convenience, whereas he noted, credit unions are famous for service. In fact, their members rank service as the key to their membership. But unfortunately, the younger demographic (those the credit unions need to survive in the future) actually trust banks more than credit unions. Credit unions fail to meet the service needs of the new generation, which is not great face-to-face customer service. They want convenience. They want bundled opportunities.
This got me thinking about the sponsorship marketing industry in Canada. Its success over the last decade and double digit annual growth over the past five years has been due to marketers and brands understanding (finally) that sponsorship is an integrated, bundled marketing tool that delivers more than just a TV buy or outdoor campaign. It involves an experience combined with other media. It is bundling a property’s assets (when done right) to meet the business goals and objectives of the sponsor. It is that simple! Wal-Mart gets it!
As I came out of that session, I was truly amazed at what Brent had to say and the comparisons with Wal-Mart. Brent recognized that credit unions need to differentiate themselves from other financial institutions, to stand out and be different, to deliver customer service based on what the customer needs and wants, not based what the CU wants to sell! It was great…I felt like I was at a sponsorship seminar. The basics are the basics. Properties and brands need to understand that they must be unique, they must deliver what the clients want and not what they “want to sell.” It is about relationships, and understanding goals and objectives. Wow, that is not rocket science!
These are just one person’s thoughts. Yours are welcomed, please comment below. And thank you for reading.