cu difference committee november 18, 2009 michigan credit union league livonia and lansing offices

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  • CU Difference CommitteeNovember 18, 2009Michigan Credit Union LeagueLivonia and Lansing offices

  • Web/Phone Conference GuidelinesMuting and unmutingOn the phone, participants can mute their own lines by pressing *6 Unmute your line by pressing *7Please do not place your phone on holdOther participants will hear on-hold messages/music

  • AgendaCall to Order/Roll CallMinutes August 25, 2009ReportsMCUL President & CEO/Committee Ex-Officio David AdamsCU Difference Chairman Darren CameronInformational Items A. Invoices in Membership Package B. Creative Proposal for 2010 C. Research ResultsD. Tentative 2010 Meeting DatesVI.Adjournment

  • Call to Order/Roll Call Minutes - ReportsCall to Order/Roll Call

    Meeting Minutes - August 25, 2009

    Reports A. MCUL President & CEO David Adams B.CU Difference Chairman Darren Cameron

  • IV. Informational ItemsInvoices/Membership PackageOne invoice for MCUL dues, CUNA dues, CU Difference contributionsAsking for 2010 contribution plus 2009 and 2010 MCUL dues rebatesDue out early December

  • IV. Informational ItemsCreative Proposal for 2010

  • TV Creative

    CreativeMessagingGM TV spotGM offer/IIAChrysler TV spotChrysler offer/IIANew TV SpotCU BrandingBetter rates/lower feesSafety/TrustCommitment/stand behind members and communitiesNot-for-profit/people focused

  • Radio Creative

    CreativeMessagingGM radio spotGM offer/IIAChrysler radio spotChrysler offer/IIAInvest in America radio spotInvest in America discountsCU brand radio spotCU brandingBetter rates/lower feesSafety/trustCommitment/stand behind members Not-for-profit/people focused

  • MediaCampaign plan10-12 weeksMarch/April startTV and radioStatewideOther considerationsWeb bannersCollateralWeb links to TV spotsWeb content

  • IV. Informational ItemsC.2009 research results

  • Overview/GoalsPosition credit unions as safe and secure Take advantage of unprecedented opportunity to step out as a safe, people-focused optionRaise awareness of credit unions and programsInvest in AmericaIncrease membership overallImprove perception among consumers and lawmakers Cooperative advertising, grassroots lobbying and the Community Reinvestment Initiative (CRI) represent the MCULs three-tier approach to protecting and promoting the credit union differenceFocus on what credit unions have in commonEveryone can joinBetter rates, fewer feesNationwide free ATM networksGreat service

  • Timeline

    YearMedia CampaignsResearch2004December (benchmark)2005$2M TV/radioDecember2006$1.1M TV/radio2007$500,000 radio (Comerica)$1.5M TV/radioJanuary (2006)2008$1.5M TV/radio$750,000 radio (Trust)January (2007)August2009$1.6M TV/radioSeptember

  • 2009 Spending Summary

    DMAAmount RaisedTotal SpentTV/Cable SpotsTV WeeksRadio SpotsRadio WeeksAlpena $ 26,646.63 $ 22,635.52 26066208Cass/Berrien $ 10,498.53 $ 9,646.02 n/an/a40010Detroit $ 545,962.23 $ 514,928.38 n/an/a751914Lenawee $ 8,000.00 $ 7,772.18 n/an/a50610Flint $ 389,567.85 $ 342,379.99 178515455915Grand Rapids $ 344,872.04 $ 322,743.88 6886479810Battle Creek $ 27,614.00 $ 27,569.72 n/an/a84815Lansing $ 161,015.53 $ 133,453.18 8404244213Marquette $ 54,519.69 $ 48,691.01 333617906Traverse City $ 94,155.29 $ 94,244.58 213421808Total $ 1,662,851.79 $ 1,524,064.45

  • Participation by Chapter

    ChaptersCUsCUs PaidNonaffiliatesAffiliated ParticipationBattle Creek871100%Blue Ox108189%Downriver217033%Flint145242%Grand River3219570%Huron Valley105050%Jackson84157%Kalamazoo1512186%Lansing138273%Metro East4217546%Metro West3017465%Mid-Michigan3017363%Moon2213059%Oakland County3516553%Paul Bunyan163527%Southwestern65083%Upper Peninsula3118058%TOTAL3431813559%

  • MethodologyTelephone survey of financial decision-makers in Michigan800 interviewsMembers vs. nonmembers tracked: 55% of Michigan residents are credit union membersAmong nonmembers, 58% had been members in past

    MembersNonmembersTotalDetroit200202402Grand Rapids7575150Other DMAs125125250Total400402802

  • To understand if consumers are getting the CU Difference messageSurveys look at campaign impact in several areas AwarenessUsage/satisfactionIs everyone eligible?CU vs. bank attitude comparisonsInvest in America discounts (new in 2009)Research Objectives

  • Key Findings

  • Advertising AwarenessRespondents were asked about their awareness of advertising for financial institutions in the past six months26% mentioned credit union, vs. 18% in 200449% mentioned bankWe still have some work to do, but have made great progress

  • Advertising Awareness

  • Advertising AwarenessInterestingly, gaps in awareness (bank vs. CU advertising) were largest in Detroit DMA and among CU members28 points27 points

  • Advertising AwarenessCU advertising awareness by nonmembers shows a significant and steady increase since 2004

  • Advertising Awareness2008: 55%2007: 49%2006: 51%2005: 56%2004: 48%

    Total 2009 CU Ad Awareness = 55%Answered Yes to Do you remember seeing or hearing any advertising about Michigan credit unions within the past 6 months?Mentioned Credit Union when asked For which types of financial institutions do you recall seeing or hearing advertising within the past 6 months?


  • Advertising AwarenessTotal hits on increased significantly over months that ads did not run on TV and radio

  • CU vs. Bank ImageThe gap between the CUs and banks grew in favor of CUs on many attributes

  • CU Image

  • Deposit Account ConsiderationsRespondents were asked what type of financial institution would first come to mind if they wanted to open a deposit accountConsideration of credit unions for a deposit account increased significantly while consideration of banks decreased significantly. The gap has closed from 22 points in 2004 to just 8 points in 2009

  • Lender considerationsRespondents were asked what type of financial institution would first come to mind if they wanted to get a loanTotal CU consideration is 57% vs. 68% for banks

    Dont know: 10%

  • Credit Union EligibilityReached a new and statistically significant high in 2009Consistent increases since 2004

  • Credit Union EligibilityUnderstanding that everyone can join increased in each market as well

  • Invest in America DiscountsBased on a new question added to the 2009 survey, more than one-third said they had heard about Chrysler and GM discounts to credit union members 14% of those respondents used the discount67% of those financed their new vehicle through a credit union% Yes By Area / Subgroup:Total Michigan36%CU Members42%Non-members30%Detroit DMA31%Grand Rapids DMA41%Other Michigan43%

  • Invest in America DiscountsHow Did You First Learn About This Discount? TV28% Credit union20% Friend / relative13% Dealer11% Newspaper11% Direct mail 6% Radio 6% Web 4%More than one-quarter of respondents who heard about the discounts first learned about it on TVStudy results suggest that CU Difference TV/radio ads were noticed by many consumers

  • General Opinion of Credit UnionsOverall CU favorability was solid at 80%Non-members significantly higher in 2009 vs. 2004 66% vs. 58%

  • Overall Satisfaction69% of CU members are very satisfied with their PFIFor banks, 43% are very satisfied

  • ImplicationsOverall the research indicates that the cooperative advertising effort is effective and meeting its defined objectivesAwareness: Continues to increaseDeposit consideration: Gap between credit unions and banks closed from 22 points in 2004 to 8 points in 2009Everyone is eligible: Significant gains in all media markets in 2009 that anyone can joinCall-to-Action: Hits to increased dramatically

  • ImplicationsCredit unions have made significant progress relative to banksAwarenessImageDeposit consideration2009 campaign was successful in breaking through to many financial decision-makersNo proof that increase was caused by MCUL cooperative advertising alone. It is unlikely that a statistically significant difference between 2004 and 2009 would have surfaced without substantial advertising activityStatistically significant high of 55% understanding that everyone is eligible to join suggests that our advertising message has been sinking in.Credit union consideration for deposit accounts has been improving at the same time that bank consideration has deteriorated

  • ImplicationsThe average ratings on most image attributes were higher for credit unions than for banksThis has been true each year the study has been conductedCredit unions did suffer declines on many image attributes, but banks suffered worse declinesThe gap in image between credit unions and banks grew significantly in favor of credit unionsDespite image declines, 80% gave a very favorable or somewhat favorable rating for their overall opinion of credit unionsCU members remain significantly more satisfied than bank customersWith recent decline in image, credit union advertising should continue to encourage trust and to reassure consumers about the safety of credit unionsThe financial crisis is the likely culprit behind the abrupt and significant deterioration in imageThe average consumer does not necessarily distinguish which types of financial institutions were connected to the crisis

  • ImplicationsBanks, with their much-larger advertising budgets, cannot be expected to sit stillFuture bank advertising is likely to attempt to heal recent damage It makes sense to invest