One question I like to ask in strategic planning sessions is this: “If your credit union went away today, would your members truly miss you and mourn the loss of their credit union because it cannot be replaced, or would they merely be irritated and inconvenienced and just go elsewhere?”
A typical answer I get is, “Oh, we would be missed, people love our credit union.” And then I say, “Tell me more.” It gets difficult to really define and turns out the real answer is members would just be irritated and inconvenienced. But not in every case though.
I recall a $20 million credit union in South Carolina that proudly announced their merger with a $1billion credit union. That little credit union, alone in a sea of over 80 predatory lenders packed within a two-mile radius, was the only source of financial hope for those in the community who needed affordable transportation or a small personal loan for when life happened. It was almost like watching It’s A Wonderful Life playout in real life. As they went away, their 3,000 members were sent back to those predatory lenders because the larger credit union had eyes on jumbo mortgages and yacht loans – not serving the underserved members the original credit union focused on.
That story came back to me a few weeks ago. I’ve recently been on a health journey to cut out crap from my diet, which has us doing most of our weekly shopping at Swamp Rabbit Grocery, a small grocer that stocked only local, natural products. Each product is pretty much unique to Swamp Rabbit and couldn’t be found at chain, big box grocery stores. From local produce and meats to freshly prepared meals made from their stock, I could already tell what a turn my health had taken by choosing foods with less chemicals and more natural ingredients. And then Hurricane Helene hit our area… Swamp Rabbit Grocery was flooded and left without power and there wasn’t another alternative that carried the same quality of foods.
Swamp Rabbit Grocery wasn’t cheaper. The staff was pleasant enough, but they didn’t hang their hat on offering “good prices and great service.” They differentiated themselves with the types and caliber of products they had. They were missed. I instantly thought about the question I ask in initial meetings with new clients.
So, I ask you the same question: Would your members truly miss your credit union and be hard pressed to find another option that offers what you provide, or would they merely be irritated at the hassle of having to move their accounts somewhere else?
“Differentiation takes commitment and hard work. Can’t just say it—need to live it, think about it, sweat over it, force it to happen if it’s that important.” – Jeremiah Barba, “5 Best Quotes on Differentiation from CASE Marketing & Branding Conference”
