BY SCOTT MCCLYMONDS
If failure to differentiate and ineffective marketing are bogging your credit union down, you’re not alone. A shift in metrics holds the key to financial services growth. Discover what you should be looking at instead of return on investment to take your CU to the next level.
The Purpose of a Business
Peter Drucker is famous for saying, “The purpose of a business is to get a customer” and “The two main functions of a business are marketing and innovation; everything else is a cost.” Think about it. Without innovation there are no products or services members will value, and without marketing no one knows how you can help him or her.
If Drucker is right about the purpose of a business and its two main functions, why is it so hard for financial services firms to differentiate themselves from each other? And why is marketing at most financial services firms so ineffective? I have the answers, but you may not like them.
Financial Institutions Have Lost Their Way
First and foremost, many financial institutions try to be all things to all people, with the result that they are nothing to everyone. Their brand is so diluted that it is impossible to market a meaningful brand promise across a multitude of member segments and business units. For example, “People Helping People Find Financial Solutions for Life” might be a good mass-market brand, but how does it apply to middle market companies? That takes real work.
