Boutique Branding

Fact: Credit unions are struggling to grow.
Fact: 2006 was a pitiful year for share and loan growth in credit unions
Fact: You can’t expect dramatically different results unless you do something dramatically different.

So what is one possible answer to shifting this outcome? Boutique Branding.

Boutique branding is appealing to the members who are going to give you the best returns on services offered. The big question is how do you attract those members? Create the club within the club because they love to be part of the status by being an insider.

Airlines have designations such as Platinum member, or Diamond status for their most frequent users. Specialty retailers have private shows for their best customers. Rental car services have preferred services for their insiders. Nothing creates status for the elite members like when you belong to the club within the club. This creates loyalty and attracts more people like them.

Brand your credit union for the type membership you want to attract. If you want to attract members with credit ratings over 680 and active loan portfolios then you have to appear to their interests. For example, a Pontiac is a piece of transportation. A Porsche is an experience of transportation. Both will get you from Point A to Point B. Which is a more profitable car to sell? How do the dealerships differ? How does the show room floor staff differ? Which vehicle owner feels more part of a special club? One sells to the masses and one sells to a boutique niche. One has status and one surely does not. What do your elite members drive? Are they getting the same level of attention at your credit union?

Setting a strategy to attract a special type member requires a focus, a niche approach and an atmosphere that has a "Wow" factor to it.

What "Wow" factors is your credit union currently branded for? What services do you offer that would attract the elite member who wants to be treated special? Strategically, credit unions need to embrace the proper branding to attract the members they desire.

Measuring credit unions by number of members and asset size is commodity thinking. No longer is a new member something to rejoice over; in fact, some members can actually be costly to the credit union. It's more important to have better quality members than to simple have a member number.

Measuring a credit union by loan growth, high-profit product sales, and percent of members using the credit union as their primary financial institution is boutique thinking and a strategic approach to getting significantly different results from doing something significantly different.

Membership loyalty is disappearing as is evidence by the significant reduction in credit union membership across the country. Define the niche of member you want to serve, give them the feeling of being part of a special club, and hold onto them for generations.

-- Russell