Nexus Connection

A Passion for Soda

Posted by Ron Jooss

It's not an easy time to be involved with credit unions. The safety and soundness of hundreds, if not thousands of credit unions are endangered by the current corporate mess. Emotions within the credit union industry are at a fever pitch, and the tenor of the discussions taking place are anything but diplomatic. Although it hasn't garnered any headlines, the credit union industry has become fragmented.

I'm sure the passion that a lot of people hold for credit unions as been tested. "People helping people" seems pretty idealistic when you are facing a CAMEL 3 through absolutely no fault of your own. I would like to introduce to you a man that still has that passion, not for credit unions, but for soda, of all things. Just check out this video. I guarantee it will put a smile on your face. But also note, John Nese was tough enough to tell Pepsi to take a hike. This video reminded me that one of the things that has always set credit unions apart is a passion for what we do. The issues are difficult, if not downright ugly, but we can't lose sight of who we are, and what got us here.

Green Standard in Banking?

Posted by Theresa Witham

As an editor for Credit Union Management, I take notice of interesting financial institution marketing, especially on TV. I live near Baltimore, and was impressed by the ads that PNC Bank has occasionally run in my market.

So I did a little research and learned that PNC, headquartered in Pittsburgh, has been committed to building green since 2000 and it applies green building standards to all new branches, claiming on its Web site and in television ads to have the most buildings on the entire planet certified by the U.S. Green Building Council.

More than 50 percent of the construction materials used in the bank's green buildings are locally manufactured or made from recycled or green materials--from the structural steel to the carpeting and fabrics throughout the building.

• Glass in the windows is three times more efficient than conventional glass.
• Natural "daylighting" is incorporated into all occupied areas of the building.
• Lighting fixtures and daylighting controls help minimize electricity use.
• Fresh air is used as much as possible. During moderate weather seasons, some buildings can be cooled and ventilated with 100 percent outside air.
• Reduced water usage results from the installation of dual-flush toilets (which give users a choice about how much water to use) and low-flow faucets.
• Heating and air conditioning systems use 35 percent less energy than traditional ones.
• Highly reflective roofing material reduces heat retention and is supported by trusses and plywood that come from managed forests, which plant multiple trees for each one cut down.
• Most everything is made from recycled material--from the steel structure to the carpet.
• Pre-manufactured exterior panels reduce construction waste.
• Roof projections were designed to shade the building interior from direct sunlight.
• Solar shades for windows block direct sunlight without eliminating daylight.
• The plants, adhesives and caulking used during construction do not contribute to greenhouse gases.
• Use of drought-resistant plants require little to no water.
• Green housekeeping procedures and green cleaning products are utilized.

The bank's corporate offices are also green. Plus, PNC works with real estate developers to determine if contaminated land, or "brownfield" sites, can be cleaned up and redeveloped for branches.

The bank applies its green efforts to all major construction projects. For example, if future development sites have existing buildings, they are "deconstructed" rather than demolished. For one project, this allowed the bank to salvage or reuse more than 90 percent of materials that would otherwise go to landfills.

What's good for the environment is good for employees, the bank says. A study found employee retention and satisfaction to be much higher at PNC Firstside Center, a U.S. Green Building Council LEED Silver certified building, than at similar traditional facilities.

And what's good for the environment is good for the bank's bottom line. PNC says the green practices can reduce its building operating costs by 35 percent or more. By improving natural lighting, heating and cooling, the bank says its employees are more comfortable and productive, and the gas and electric bills are reduced with advanced air-cooling systems. Plus, the HVAC technology takes advantage of seasonal pricing by using natural gas in the summer and electricity in the winter in select buildings.

PNC is not the only financial institution that is making a green commitment. Read several ways that CUs are getting greener in articles from the August 2009 "green theme" issue of Credit Union Management:

• Green Assets
• Greening Your Staff
• Living Green
• Shades of Green
• Walk the Green Walk

These CUs have promoted their green efforts to their members and their communities, fostering goodwill and showing their commitment to creating a better world. What is your credit union doing to support the environment, and how is it promoting its efforts?

Theresa Witham is a CUES editor.

Also read "Going Green Promotes Positive Press and Positive Impression" and "Going Green Neither Corny nor Idle" on CUES Skybox.

Learn how CUES saved $52,000 by making some small energy changes in CUES Cost Control Series: Facilities.

Learn more about green facilities in CUES Complete Guide to Credit Union Facilities.

People Who Need People...

Posted by Christopher Stevenson

My wife and I just put our house on the market. It's been a pain getting the house ready and finding a Realtor®, but the biggest disappointment in the process was the realization that open houses are now passe. I've always found open houses kind of exciting, whether I'm shopping for a house or selling one, but of the four real estate professionals we interviewed, only one still believed open houses are an effective selling tool. Why? Online real estate sites, Facebook, YouTube, LinkedIn, and so on.

People in the market for a new home don't venture out on Sunday afternoons, hunting down the requisite aluminum sign with the pointing arrow. Instead, they go on line any time of day or night that they get the urge, take virtual tours, and use interactive online calculators to figure out their mortgage payment. Now, I'm not stupid; I use those online tools myself and know everyone else does too. That said, it never occurred to me that the online tools are so effective that they would replace old-school open houses. If I'd put my home on FSBO, I'd be spending my weekends prepping for open houses. Thank goodness for my Realtor's perspective.

So what? What does this have to do with CUs or marketing?

Group think and faulty assumptions prevent us from doing what's best for our credit unions and members. If we don't break out of our day-to-day routines, network with CU peers and contacts from other industries, read stimulating material, and so on, we tend to stick to what we've always done, even if it's not what's best for accomplishing our goals. Sometimes you just need to have someone tell you your ideas are passe and it's time to move on.

How do you do it? Start with reading blogs and participating in Twitter. (Trust me when I say that there are all kinds of folks on Twitter who aren't afraid to tell you you need to do things differently.) Attend conferences, seminars, and networking events, both in the CU community and outside of it; consider joining a service organization.

Here's the scoop. We all, no matter what our background or intelligence, fall into a rhythm in our day-to-day lives. That rhythm helps us cope with challenges and change, but it also hobbles us as we try to do our jobs better. As far as I'm concerned, the best antidote is to spend time with people who aren't afraid to tell us we need to do better or to pitch us ideas that can promote excellence.

Do you have people?

WOM: Lessons Learned at a FOTC Concert

Posted by Sara Dyer

We all know that negative word of mouth can steamroll a company's reputation, but we typically think of this kind of WOM as a slow-growing fungus. It's causing damage, but it's kind of hidden away from the rest of our business. Left unchecked, it will cause irreparable damage, but if we address it soon enough, it won't cause serious harm. Sites like Yelp! help facilitate the spread, but it's still relatively slow. But sometimes, a company ticks off the wrong person and negative WOM isn't a mold, it's an epidemic.  

Sunday night, I was lucky enough to score tickets to Flight of the Conchords at Madison's Overture Hall (an amazing show, btw--check them out). Their opening act, Eugene Mirman, who has a small recurring role on the band's HBO series, told a story about Delta Airlines losing his luggage. While I can't do his story justice in a blog post, the gist of it is that Delta screwed up, said they were going to fix it, screwed up again, again claimed they would fix it and still did not resolve the issue. In the end, Mirman filed an insurance claim and received a check for his lost belongings.

Now this is where the story gets interesting. Instead of using his claim check to purchase a new suitcase and underwear, Mirman used the money to print thousands of these postcards.

 

He tells his story at concerts, passes out the postcards to all in attendance, and encourages us to mail them in.

Funny? Heck yes. 

Damaging to Delta's already fragile reputation? Without a doubt.

Delta didn't know they were ticking off an influencer. If they had, they might have resolved the lost luggage issue more effectively. But the thing is, we never know our customers'/members' scopes of influence. Understanding that every one of our customers/members may have significant influence raises the bar for our level of service. You never know who you may tick off.

Better yet, you never know who you may please.   

Inspire the Editor With Your Great Work in Marketing

Posted by Lisa Hochgraf

Editors get their story ideas from lots of different sources. For example, I got excited about the idea of credit unions educating members about "thrift" and "saving" from a presentation Matt Davis made at FORUM Symposium in early October. His talk inspired me to write this post, "Don't Tell Me You Can't Innovate." In addition, it prompted me to assign a writer to develop an entire story about what credit unions are doing to promote thrift for Credit Union Mangement magazine's February 2009 issue.

Another place I often look for inspiration is among winners of the CUES Golden Mirror Awards competition. Once the winners are announced, I take a look at the entries, and find a lot to celebrate--and write about. If you've done something really cool and effective this year, plan to enter your campaign in the contest. (Note: The earlybird deadline is Dec. 19.) Winners get trophies at a fabulous CUES Experience banquet (in Denver in April)--and possibly extra media coverage from yours truly. By the way, Matt Davis will be a featured speaker at the conference.

If Your CEO Were to Blog With Members ...

Posted by Lisa Hochgraf

The "Ask Jack" blog, launched mid-October by Members Credit Union, can already boast almost 1,800 visits. And one post has garnered a dozen comments to boot.

The blog allows consumers to send questions directly to Members CU President/CEO Jack V. Braswell, Jr., anonymously if they so choose. It also includes video posts by "Jack" covering such topics as "Does the Current Financial Crisis Mean I Won't Be Able to Get a Loan?"

Director of public relations for the $200 million CU in Winston-Salem, N.C., Matt Davis is using Google analytics to measure the traffic to the site. "It's free, and amazingly deep," he notes.

How did Members CU score so many visitors so early in the game?

"For obvious reasons," Davis says, "our major promotional efforts have centered on 'electronic users.' We have posted the link to the blog on our Web site, included references to the blog on our 'Football Pick'em' videos and e-mails, and directed members to the site via e-mail and electronic communication within our online banking site."

Davis says he's been especially pleased with how the CU has incorporated the blog in the launch of its "Holiday Skip-a-Pay" program.

"I liked that ... members got to hear straight from our CEO why we launched the program"--to help members through these tough economic times, he explains. "We decided to use 'Ask Jack' as the place to get information about the program to help familiarize people with the site. It seems to have worked extremely well. We have about a dozen comments on the 'Holiday Skip-a-Pay' post, and have started getting quite a few messages through the blog's contact form.

"I could totally see us using this method again. Transparency is all the rage and there is nothing more transparent than having the person behind the decision explaining to our members why that decision was made."

Long term, Davis hopes to integrate the blog with Members CU's main Web site. "My goal would be to center all communications on 'Ask Jack,'" he explains. "Why? Searchability, ability for members to comment, and the format's unique ability to make communications informal, informative, and transparent."

Credit Unions: Just in TIME

Posted by Christopher Stevenson

Today, on the Business &Tech page of Time.com, credit unions got some great press. In Bad Times for Banks Mean Boom Times for Credit Unions, Barbara Kiviat explores the surge in business that some credit unions have seen in the past month due to the economic crisis and bank failures. Kiviat provides balanced coverage, discussing loan and deposit growth while addressing the increases in delinquencies that some CUs are dealing with. Here's an excerpt:

Now that the credit crunch is rolling full-tilt into the real economy, even credit unions with the benefit of geography likely won't be able to escape the effects of recession. At the 66,000-member Unitus Community Credit Union in Portland, Oregon, loan volume is up this year in nearly every category — 32% in mortgages, 37% in student loans, 12% in credit cards — but so are delinquencies. Since the beginning of the year, late payments have increased from 0.17% to 0.40%.

Even by the standards of credit unions, which tend to have much lower delinquency rates than banks, those figures are worth bragging about, but Unitus CEO Patricia Smith still isn't standing idly by. Three weeks ago, she hired the credit union's first work-out specialist to start pouring through loan data and making pre-emptive calls to people who might need help — the sort of down-home, we-care solution credit unions sell themselves on.

Filene's George Hofheimer, quoted in the article, sums it up nicely: "... in times like these, it's just what the doctor ordered."

Note: If you've ever wondered how Madison, Wisconsin became the center for credit union organizations, check out Kiviat's complementary blog post.

Game-Based Banking?

Posted by Ron Jooss, CUES Editor

Earlier this week, I read this article in The New York Times. I'm 45 years old. I'm not a gamer. I played a little Centipede back in the day. I actually bought a version of Madden at the urging of some friends, but never got the hang of it. After watching some 14 kids in Best Buy go at it like Tom Brady and Peyton Madden, I was convinced I never would. My son is four and he already lives a pre-literate sort of lifestyle described in the article. At least three times a week, he finishes watching a show on PBS and asks me to log him on to pbskids.org, where he can play learning games. He also has a Wii, whips my butt about half the time and tells me I'm lame. The point is, Gen Y and all subsequent generations are not only gamers, but gaming is the way they learn, read, problem solve and interact with the world. In short, the world going forward will be shaped by gaming.

I know credit unions are aware of Gen Y's love for gaming. I get press releases that tell me how many credit unions are giving away Wiis and Xboxes to entice new young members. But have you thought about how the future of your financial literacy programs, Web sites and home banking programs are going to be shaped by gaming? I can almost guarantee they will be. Most innovations in the financial services industry come from other business sectors. Where will credit unions come up with the brainpower to ride this wave and come up with the next generation of gaming-generated learning tools, Web apps and/or home banking applications? Probably from their CUSOs. Cooperation is key and CUSOs will have the time and bandwidth to come up with ideas. The important things, I think, is to start thinking and talking about it.

A Filene i3 team talked about credit unions and gaming ... Check it out in "Virtual Finance: Pushing us Out of Our Comfort Zones."

Thank You to the Skeptic(s)

Posted by Lisa Hochgraf

There's a lot of talk in my world about thinking positive and keeping a positive outlook. In practice, I really do try to operate as positively as possible.

But two elements of last week's FORUM Symposium in Indianapolis reminded me that a certain amount of skepticism is a really healthy thing.

One was the unveiling of and the presentation by the once-anonymous CU Skeptic, now known to be Mark McSpadden of Garland Group/Banktastic. Mark the CU Skeptic has on his blog the tagline "I'm not drinking the credit union koolaid." In a year, his 24 anonymous posts (which generated 160 comments) pushed the envelope, asking hard questions about how (and even whether) CUs today are implementing the seven cooperative principles.

I realized toward the end of Mark's presentation that I was scared he'd stop blogging once he was known widely. I want him to keep asking hard questions and pushing us to think about why we're really in this business and what we can be doing better. Thankfully, he says he intends to continue.

Interestingly, Mark wasn't the only skeptic at the conference. Ron Shevlin of Aite Group, and the author of the Marketing ROI blog, was there, too. After each conference session, the speaker and Ron would sit down in comfortable chairs on the side of the stage. Ron would ask the presenter probing questions, press for specifics, challenge assumptions. Then Ron would open things up to audience questions.

The buzz around the conference was that the Q&A Ron was having with speakers really added depth to the conversation and primed the pump for audience questions. The speakers knew what was coming and were ready. Not only to respond to good, challenging questions, but also to lighten the mood. For example, after his presentation on mobile banking, Mt. Lehman Credit Union's Gene Blishen invited Ron to wear a jester hat.

In all, the skeptics really added a richness to what went on at FORUM Symposium. And they regularly add a richness to the overall conversation about CUs. I thank them.

How do You Get People Fired up?

Posted by Lisa Hochgraf

Yesterday at FORUM Partnership Symposium in "Indy," William Azaroff of Vancity Credit Union, Vancouver, British Columbia, greeted me by asking, "What's new?"

I shared my excitement that my town (Mendon, N.Y.) had voted the night before to fund a new library with a bond issue of $1.35 million. I said I had thoroughly enjoyed being part of the group of volunteers that had worked to get people fired up to vote yes.

William, a leader in the development of the changeeverything.ca site, knows all about getting people together to do positive things. Changeeverything.ca encourages Vancouver residents to share what they would like to see change--and a lot of very positive action has come out of the discussions on the site.

"It takes some lead time," William said, to get people going. "You need a plan."

The library vote was the same way. It took a plan to get the bond issue approved. The town board, the library trustees and members of the Friends of the Mendon Public Library worked together to get the word out.

What else does it take? I bounced another idea off of William.

It related to Tim McAlpine of Currency Marketing and his keynote yesterday about the one-year anniversary (today! Happy Anniversary!) of Young & Free Alberta, a highly successful social media campaign designed to get members of Gen Y in Alberta fired up about getting a free checking account with Common Wealth Credit Union. Tim suggested that the campaign worked in part because it was first entertaining (with fun videos, blog posts and celebrity appearances by spokester Larisaa Walkiw), and then informational (about the associated free checking account).

The library vote information wasn't "entertaining," I suggested to William. But his take was that pulling on people's heartstrings about how a new library would serve various segments of the community and perhaps draw the community closer together overall might serve the same purpose of getting people fired up.

Have you successfully inspired action among your staff or members lately? How did you do it? What elements of your effort made you successful? How do you get people fired up?