Nexus Connection

A Shared 'Experience'

Posted by Lisa Hochgraf

For me, this week at CUES Experience in Minneapolis was a big, positive, wonderful, well, experience.

I loved spending time with people I've met in the blogosphere, but hadn't yet met in person--Tim McAlpine, William Azaroff, Robbie Wright.

And re-connecting with people I've met at least once before--Brent Dixon, Katy Jett, Deb McLean, Morriss Partee, Ron Shevlin, Steve Williams, Denise Wymore--and, of course, my esteemed CUES colleagues.

And meeting tons of new people and gathering a bunch of ideas for future articles in CUES publications.

I loved my offsite experience to Fair Isaac. (I know talking about credit scores for two hours may sound boring to some, but I learned about a particular score that may help credit unions better serve people who don't have a credit history--whether that's the underbanked or members of Gen Y--and post-visit discussion of how credit scoring played a role in the submprime problem was also worth hearing.)

In all, I say woo hoo!

But probably my biggest takeaway was being inspired about how members can be encouraged to return to improving their financial situations by saving more and paying down debt.

Two speakers--Arkadi Kuhlmann, president/CEO of ING DIRECT, and Musette Bracher, VP/marketing at GECU, El Paso--talked specifically about how their organizations have taken a real stand on this issue. And they think more credit unions can do the same. (If you want more on this topic, watch for my upcoming article on Kuhlmann's session in Credit Union Management magazine, and read more about what Bracher's done in "Inside Marketing: The Savings Revolution.")

What was your big experience from CUES Experience?

Employees See CU's TV Spots Via YouTube--You Can, Too

Posted by Lisa Hochgraf

Some credit unions lock down social media sites, making them off limits for employees. That's the case at the CU of one of my table mates at yesterday's opening general session here at CUES Experience in Minneapolis.

My other table mate's credit union looks at this differently. It shows employees its latest TV ads by posting them on YouTube.com, according to Lisa Fawcett, marketing director at $260 million Co-op Services Credit Union, Livonia, Mich.

On YouTube today, I found Co-op Services CU's TV ads for auto loans, debit cards and home loans. The auto loan ad has had more than 1,200 page views, and has a five-star rating. The blooper reels for each are also there! Check them out, and consider how using social media sites might be a tool for communicating with your employees, and maybe even injecting a little healthy humor into your workplace.

For more on the debate of allowing social media use at work, also read How Wired Should Employees Be?

Also read "What’s for Lunch?" about credit unions, videos and social media on CUES Skybox.

Selling Loans in a Down Market?

Posted by Lisa Hochgraf

I've been hearing rumblings that the current economy, complete with expensive eggs and way expensive gasoline, may actually be pushing people to SAVE again.

Wow! That's great news, isn't it! Credit unions are all about thrift, right? (Denise, that one was for you.)

At the same time, having people save more might be tricky for credit unions because, like it or not, they don't make money on share deposits. They make money when people take out loans.

So, experts out there in CU marketing, what do you think? Are the strategies for selling loans in a down market any different? What tactics work well? Do you promote different types of loans when the economy is down than when it is booming? Is anyone bundling savings products with loan products at this juncture?

Thanks in advance for sharing your thoughts and approaches.

CUES Experience is Almost Here

Posted by Christopher Stevenson

A year in the making, CUES Experience has finally arrived.

Experience kicks off Tuesday night with a celebration for the Golden Mirror Awards, the highest honor for credit union marketers. It will be a fantastic time to honor the industry's most innovative, creative, and effective marketers with award presentations and a kickin' after-party at the RWFB Rooftop Lounge at the Chambers Hotel. (Thanks to our friends at Priority for helping make the after-party a great time!) There is no other party quite like the GMA after-party!

The thing is, you're bound to be torn between sticking around at the party or going home to get rested up for the following day, which kicks off with an interactive session with Arkadi Kuhlmann, CEO and chairman of ING Direct. I spoke with Arkadi last week and I'm really looking forward to his session. He's promised to share his insights for increasing market share and competing with the traditional big banks. Can't wait.

I'm not just hyped about Arkadi, though. Wednesday continues with breakout sessions from many of the people I admire most in the industry: Steve Williams and Terence Roche from Cornerstone Advisors, Inc.; William Azaroff, the mind behind Vancity's online strategy and community engagement; Morriss Partee, chief experience officer, EverythingCU.com; Ron Shevlin, senior analyst, Aite Group; Tim McAlpine, chief strategist, Currency Marketing, and the driver behind Young and Free Alberta; and the list goes on.

Thursday brings the site visits to some of the most prominent and innovative companies in the Twin Cities area, including the Minnesota Twins, Mall of America, Pixel Farm Interactive, Summit Brewing Company, and Fair Isaac. We're not just touring these companies; we'll sit down with the executives and learn about their approach to business. What do they think sets them apart from the pack? Then we'll return to the conference site for facilitated workshops to distill implementable take-aways for your credit union. No other major CU conference provides such an exciting way to gain a cross-industry perspective.

Steve Williams and Jeremy Gutsche, founder of trendhunter.com, will cap off the week with sessions on IT and Marketing: The Ultimate Collaboration and Unlocking Cool, respectively.

There's no doubt about it, Experience is going to be a trip. I can't wait. If you're there, be sure to track me down and say hello.

Shared Staffing Survey: Help Our Friends from Filene's 30 Under 30 Initiative

Posted by Felicia Hudson, CUES Marketing Specialist

Sharing employees among several credit unions is not a new concept to our cooperative movement. But our friends at Team Danube of the Filene Research Institute's 30 Under 30 initiative are looking at the possibilty of developing the concept into a formalized national shared staffing service. And they need your help!

The shared staffing service Team Danube envisions would offer young shared employees status as consultants in their field--and provide them the potential for national travel. This would help credit unions that share staffers attract and retain young employees. On the flip side, smaller credit unions would benefit from a shared staffing service by getting affordable access to much-needed skills and knowledge.

Team Danube is wisely launching its project by seeking more information about how credit union leaders currently staff their credit unions with employees and contract workers, as well as their interest in sharing staff and in working with a shared staffing service.

Would you help them out? Tell them what you think by taking the survey here. (It's only 12 questions and the last two are your asset size and title... And please do add comments in the spaces provided. It would be a big help to them!)

If you have questions, comments or just want to know more about the project, please contact Carma Parrish, Team Danube, at 765.541.2112.

Thanks in advance!

Oh and by the way, members of  Filene Institute’s 30 Under 30 Intitiative will also be presenting three of their projects at CUES’ CEO Network 2008, Nov. 2-5, Las Vegas.

More Ideas for Helping Members Save or Spend Their Stimulus Rebate

Posted by Jon Cook, CUES editorial intern

"What are you doing to help members save or spend their federal stimulus rebates?" was the question CUES Editor Lisa Hochgraf posted in early April to CUES Net, a CUES-members-only listserve. (She also wrote about the stimulus rebate support being offered by one marketing firm in this Nexus Connection post.)

CUES Netters responding to Lisa's post reported giving members new savings and borrowing options that coincide with the stimulus package. Other things credit unions can do at this time include pointing members to useful resources (see below) and helping members who wouldn't usually file a return do so, to become eligible for the rebate.

One CUES Net participant reported that her credit union is offering a great savings rate to encourage members not to spend the rebate right off the bat.

"We created a five-month, 5 percent certificate, $1,500 maximum that will be offered during May and June as an alternative to spending the money," replied Ellen Yacovone, interim CEO of $150 million Tucson Old Pueblo Credit Union, Tucson, Ariz. "Our primary focus will be educating our members to first use the funds to pay off debt, but if they don't have [a loan to pay off], save it instead of spending it."

Another CUES-member credit union is offering special programs to try to bolster waning loan demand.

"We are rolling out several loan specials to carry us into the summer," wrote Marshall Boutwell, CEO of $93 million Gwinnett Federal Credit Union, Lawrenceville, Ga. "Hopefully, that will stimulate increased loan demand, because we are seeing loans go down (despite great rates) and deposits are flowing in. Members seem to have stopped spending and they are paying down their debt. While it is not good for the CU over the short run, it is good for the members and the CU in the long run."

And still another is inviting its members to "double their rebate."

"We're offering our members a way to double their stimulus checks by depositing their checks and taking out a partially secured loan for twice the amount of their deposit, up to a loan amount of $3,600," wrote David Lucas, CEO of $54 million Leyden Credit Union, Franklin Park, Ill. "Repayment is up to 24 months and the rate is dependent on the term they choose.

"We're marketing it as a way to double your money and still have the original amount available after the loan is repaid," he explained. "Since the loan is half secured, we'll be able to offer it to members that may be struggling a little bit."

In addition to offering special savings programs or loans, CUs can direct their members to the MyMoney.gov Web site, created to provide access to financial education tools that can help Americans to save, invest and manage money. The site includes a section specific to the stimulus package. It also has warnings about scams that may go along with the stimulus package payments.

Indeed, with about $100 billion going to an estimated 130 million households, there has been worry that scammers will try to snag a chunk for themselves. The Internal Revenue Service urges consumers not to give account or Social Security numbers over the phone or via e-mail, because the IRS will not be contacting anyone by phone or e-mail about the stimulus payments. The only way to get the payment is to file a 2007 federal return, which brings up a question: What about those who don't usually file a tax return?

CUs can educate members about how to get a rebate, and help those who wouldn't usually file a tax return. This could include members on disability, Social Security or veterans benefits. This is a way for many CUs to give back to their members.

The April 15 tax deadline has come and gone, but people can still complete their tax forms and receive the stimulus payment. The final deadline for filing a return to become eligible to receive a stimulus payment is Oct. 15. According to the IRS Web site, the payments will be delayed by an average of about two weeks from previously scheduled payment dates.

Other ideas? What else can credit unions do for members? I look forward to your comments.

A Happy Addition to CUES Experience

Posted by Christopher Stevenson

I am very pleased that Morriss Partee, Chief Experience Officer at EverythingCU.com, and Tim McAlpine, president and chief strategist of Currency Marketing, will be presenting Building Relationships Through Social Media, a 60-minute breakout session at CUES Experience on May 14. In their own words:

If Facebook were a country, it would be the nineteenth largest in the WORLD, clocking in at 69 million registered members and growing rapidly. Social networking is changing the landscape, and there are opportunities to get involved. In this session, join two online social media pioneers to learn how you can utilize your credit union's existing resources to create and deepen online and offline relationships with YOUR members, and in the process sell more products.

Morriss and Tim are two of the most innovative, forward-thinking credit union advocates out there and I am excited to have them join the Experience breakout session line-up.

Dan Pink's New Book Promotion: Shooting for Viral?

Posted by Christopher Stevenson

Earlier this week I received an email from Dan Pink, best-selling author and innovator. In A Whole New Mind, Dan explored how business success no longer rests on the traditional, left-brained business aptititudes; instead, success requires right-brained qualities, like inventiveness and empathy. Now, Dan has a new book out called The Adventures of Johnny Bunko: The Last Career Guide You'll Ever Need.

The book itself is unique; it's written in the style of Japanese comics (manga) and is supposed to be a quick read without sacrificing depth of content. I haven't read the book, but I get the feeling it's not geared for the 40-year old manager, but for 20-somethings. I'm sure the unique format will help the book make a splash in among Gen-Y professionals. But what's really going to get word of mouth going is the "movie trailer" for the book.

Is the video going to go viral? It's too early to tell, but I suspect that it will. Viral is elusive, but Dan Pink's video is creative, funny, and it captures what he was espousing in A Whole New Mind. It may have what it takes. And I'm not the only blogger posting about Johnny Bunko. At the time of this post, a Google blog search showed 367 other blogs with posts about the book. It will be interesting to see how that number grows. 

Going Viral is dang hard to achieve and few CUs have done it. Of course, Larissa Walkiw managed it with Common Wealth CU's Young and Free videos, but who else has achieved it? Do you think CUs can do it? Should they try?

How Wired Should Employees Be?

Posted by Theresa Witham

There's a lot of talk about how Web 2.0 can be used to appeal to young members. But what about young employees? If employees are comfortable communicating via text or instant message instead of e-mail, how can a credit union use that to its advantage? And what about blogs? Can they appeal to potential employees, too?

Speaking of blogs, what kinds of policies do CUs need to regulate employee participation? I see two sides to this: There are the policies that deal with employees who are blogging on behalf of the credit union or commenting on work-related blogs. These policies need to spell out what the employee can and cannot do. (Tim McAlpine has a great post about blog policies and paranoia on his Currency Marketing blog.)

But what about employees who have a personal blog, MySpace or Facebook page? Maybe they post pictures of their dogs and kids, or maybe they talk about model trains, or maybe they write about their weekend activities. Maybe those weekend activities are completely legal, but perhaps not the most professional. Can a CU do anything about that?

Then there are the policies that ban all blogging from work, lumping CUES Nexus Connection in the same category as stuffonmycat.com. I know I am biased here, but the CUES blogs and the blogs of many of our commenters have interesting posts and wonderful conversation. Why not amend those policies to let employees read and participate in any blogs directly related to their work, whether it's a CU blog or one that relates to a job function, such as marketing or HR? Also, do the rules change (and should they?) if it's the CEO or a vice president blogging instead of a loan officer or membership services rep?

I'm seeking background for a future Credit Union Management article and would love to hear your ideas. Thanks!

Kudos to PopCap

Posted by Christopher Stevenson

Do you ever get the urge to try and control consumer conversation? To keep tight reins on how consumers view and use your products or services? It's one of the main reasons many companies don't get into blogging or social media. It's understandable; it's scary to release control. And typically what happens when a consumer tries to wrestle a bit of customization away from a company that maintains tight control is a lawsuit. Think about the music industry's insistence on suing college students for sharing music files. (Before anyone sends me a nasty note about the illegal nature of swapping files, let me state that I know it's wrong, but multi-million dollar companies beating on broke college students doesn't get to the crux of the issue.) Recently though, PopCap, the software company behind the popular video game Bejeweled, demonstrated how allowing your customers a little free rein can pay off in spades.

Here's the scoop. Apparently Bernie Peng, a software programmer in New Jersey, hacked Bejeweled so when his girlfriend reached a certain score in the game it would display a ring and a marriage proposal. (I would prefer Jumbotron proposals, personally.) Peng detailed his efforts on his personal blog and PopCap caught wind of his work.

The Associated Press reports that instead of sending Bernie a cease and desist order, PopCap decided to give Bernie and his bride a wedding gift:

The couple plan to marry over Labor Day weekend, and PopCap, the Seattle company that makes "Bejeweled," will fly the couple to Seattle as part of their honeymoon.

"Most video game companies would frown on people manipulating their games," said Garth Chouteau, a spokesman for PopCap.

"But it won him a woman. As a bunch of geeks we have to say, 'Bernie, hats off to you.'"

The company is also supplying copies of "Bejeweled" to hand out as favors to the wedding guests.

Huh, go figure. PopCap could have made a stink, rifled off a C&D, and positioned themselves forever as enemies of romance (right up there with the Montegue and Capulet families). Instead, they've blessed brilliant Bernie's romantic (albeit geeky) escapades and have generated a huge amount of positive press for the company and its trademark game.

Is there risk to opening up and releasing a bit of control? Absolutely, but it's clear from PopCap's example that there is a huge upside potential as well. It's not right for every credit union, but maybe it's right for yours. 

   

Ready to be 'Friends' With a Company?

Posted by Lisa Hochgraf

I got really excited about Facebook when I first got a profile a month back. So excited I thought maybe Facebook could be my one-stop home for everything, credit union account access included.

After I posted "Greet Gen Y With Account Access on Facebook," Brent Dixon gently reminded me in a post to OpenSourceCU (Social Networks are/Social Networks are not ) that companies and Facebook don't necessarily go hand in hand.

This week I had an experience that underscored that idea. A company invited me to be "friends" on Facebook. I serve credit unions, so if it had been an invitation from a credit union, I likely would have accepted and never looked back.

But this invitation was from a company that markets to credit unions. And I'm supposedly an "independent" editor. Would being friends constitute an endorsement? I've worked on developing articles with executives from this company and they're great--if they personally had invited me to be friends, I would have accepted without batting an eye.

How would I feel if my credit union asked me to be "friends"? After digging through its online banking system for a few numbers as I filled out my taxes last night, I'm just not sure. On the other hand, I'd love to be friends with the guy who guided my morgage process a few years back. I know and trust him.

I very much respect credit unions trying out a presence on Facebook and other social networking sites (and I read with interest Mike Templeton's post about how to make the most of it).

But I hope CUs on Facebook also read the discussion on Brent's post, which clearly pointed to the idea that people go to these social networking sites to--well--network, and be part of a community, not necessarily to do business. The comments include specific ideas on how credit unions might use their Facebook pages for community building, not just sales or transactions.

Freebie Webinar: Developing Your Mobile Banking Strategy

Posted by Christopher Stevenson

Mobile banking is on the radar of lots of CUs. Mobile is sexy. Unfortuntately, effective mobile banking is also elusive. So how do you build an effective mobile banking strategy? Cornerstone Advisors' Tripp Johnson and Quintin Sykes recently presented a Webinar on just that topic.

Check the Webinar out for free. Just click here and then click "Order Now" in the upper right corner of the Webinar's Web page.

Mobile banking will also be a topic of conversation at CUES Experience in May, where Steve Williams, Principal of Cornerstone Advisors, will be moderating a panel of execs who have successfully launched mobile banking at their CUs. What better way to learn about how to launch mobile banking than from those who have done it? Should be a great session.

Also check out Lisa's earlier post, Raining on the Mobile Banking Parade.

CUES Experience Podcast Episode 1: Steve Williams and Brent Dixon Discuss Top Tech Trends

Posted by Christopher Stevenson

I am excited to announce the inaugural CUES Experience podcast! In this installment, Steve Williams, principal of Cornerstone Advisors, Inc., discusses the top technology trends of 2008 with Brent Dixon, creative director of Trabian and blogger at opensourcecu.com.

powered by ODEO

Steve will be heading up the technology track (formerly known as Executive Technology Forum) and facilitating the visit to Fair Isaac, and Brent will be leading the visit to Summit Brewing Company at CUES Experience, May 13-16 in Minneapolis. Don't forget to register; it's going to be an amazing event.

A special thanks to Brent for his podcast guru-ness and to Steve for his terrific insight. Thanks, guys.

Ready to Help Members With the Stimulus Rebate?

Posted by Lisa Hochgraf

These words in an ad for ACTON Marketing in the upcoming April 2008 issue of Credit Union Management magazine caught my attention:

Every sort of retail business is gearing up promotions to convince eager consumers to spend the incentive money and tax refunds with them. So are banks.

Oh yeah, I thought, I'm so glad Mary Arnold pointed this out to me. Many people are getting extra money back from the feds this tax season; in addition to any refund they might be due, lots of households will also see a stimulus rebate of $600 or $1,200. And that begs the question: Are credit unions poised to help their members save or spend that money ... with their credit union?

Speaking with ACTON SVP/Financial Serivces Patrick Grosserode underscored for me that we're not talking about chump change: Figuring that all your member households get $600, and that there are about 1,000 households per branch, we're talking about an influx of $3.5 million for a six-branch credit union.

"Some people are going to save at least some of it," notes Grosserode. "There's also a market for spending it," and that could including using it as a downpayment on a loan for a boat, RV, car or house.

"Conceptually, every credit union has a lot of money coming in," Grosserode says, "so what are you going to do with it?"

Indeed, what are you going to do with it? Anybody got any plans?