The moment community banks and credit unions accept that they are Challenger Brands and redirect their marketing resources to focus on what differentiates them from the big banks and their competitors is the moment they become relevant, meaningful, and can begin making a difference for their members.
By definition, Challenger Brands are any organizations that are out-resourced by their competitors. That can mean the gorilla brands in your industry may have greater brand recognition, more branches, larger staffs, or just more money to spend on marketing. Credit unions and community banks are classic Challenger Brands when compared to big banks, as most lack the resources to go toe-to-toe (or dollar-for-dollar) with the gorilla institutions in their communities. Because of this reality, it is important that community banks and credit unions take on the Challenger Brand mentality and focus their limited resources on articulating to the community who they are, what they stand for, and how they can make a difference for their members.
Don’t Fall into the Product Marketing Trap
Credit unions and community banks can take advantage of the fact that all financial institutions are similarly regulated, requiring everyone to offer similar products with similar benefits. Since the products are generally the same, the wise community bank or credit union should focus its valuable marketing resources on positioning its brand, highlighting what makes it special, and not only promoting featured rates or offers. This will keep you from falling into the product marketing trap.
The trap is committing your precious resources to promote a product or offer that a potential member could theoretically get from another financial institution. This trains the prospect to shop for the best offer and not the benefits of membership with your unique enterprise.
Find Your Organization’s Core Reason for Being
So, what are the benefits of membership with your organization? What makes you special? What differentiates you from your competitors, would compel a prospect to join, and will ultimately make you famous? Do you know? Can you articulate it in 30 words or less?
We believe it begins with the essence of your organization: your core reason for being that lives within each employee of your organization and within your customers/members. Your reason for being, what makes you special, your essence is the key to your messaging and positioning and is something that can’t simply be drawn up over lunch. This messaging that reflects your essence must be true, defendable, and distinguish you amongst every other financial institution in your community, requiring a process that won’t tolerate guesses or assumptions. Extracting your essence necessitates thorough, intentional research within your organization, amongst your members, and into your competition to ensure your positioning is built on firm data that genuinely connects with your target.
Build Your Brand Loyalty
Once your brand is properly positioned and messaged, current and prospective members will be attracted to you for what you stand for, the benefits you bring to the community, and the impact you make on lives – not merely your temporary low rates or promotions. With messaging that resonates with the community, you will build your brand loyalty in a manner that allows you to better compete with fewer resources. When special offers are tied to your brand, and all it stands for, trust and credibility are enhanced, giving members and prospects more of a reason to engage with you.
Discounts, promotions, and low rates do not make you unique; remember, your competitors are selling similar (if not identical) products. It’s your brand, its true and unique positioning, and its relevant messaging that will set you apart and position you for success.
Challenger Brands must discover their unique niche that they can own and defend from anyone. Your future success is dependent on your ability to articulate this distinguishing positioning and its ability to meaningfully connect with the community.
