National SME Strategy: Image and Awareness Program

1. National SME Strategy: Image and Awareness Program

2. Where did the SME Initiative Come from?

3. Background and Research Vision: Credit unions will be the preferred provider of services to small and medium sized enterprises in Canada. Facts: • The CFIB ranks credit unions #1 in terms of overall service and confirms that we have strong positions in areas that businesses value such as local focus, reasonable access to credit, and convenient locations • Our market share is second only to the Royal Bank

4. Building on our Strengths • Moving from our strong position to being the preferred choice • We need to work together to expand upon our individual efforts and build our competitive advantage • Business-oriented relationships are at least three times more profitable than a retail-oriented relationships • We can leverage experience and creates awareness of the benefits of being served by a local credit union

5. Credit Unions are #1

6. CFIB Research

7. Ipsos Research Highlights • 4 out of 10 SMEs think of credit unions as being a financial institution; however, only 17% feel informed about them • Most SMEs (76%) use a bank as their primary FI, 16% of all SMEs use a credit union as their primary FI • Core (must have) products for SMEs are current accounts, internet banking, ATMs and operating lines of credit

8. Ipsos Research Highlights (continued) • SMEs express a high degree of satisfaction with their primary FI. Credit union users are more satisfied than bank users • Credit unions had a high retention rate – higher than those who use banks • Dual users are slightly less positive • Only 19% of SMEs think that the statement “credit unions are the preferred choice for SMEs in Canada” is believable

9. Ipsos Research Highlights (continued) • SMEs doe not believe there is a clear differentiation between credit unions and banks • Credit union drivers are: • Delivers as promised • Flexible policies • Makes banking easy • Complete range of products and services • Responsive service • Accessible

10. Scalable Communications National Communications Umbrella Solid National Campaign (Umbrella) with Regional Tailoring Regional Communications Programs Local Credit Union Tie-In Material Credit unions can order tie-in material from the National Program

11. Program Overview Awareness Campaign/Communications Strategy Aware Familiar Consider Try Satisfy Repeat and Refer National Opportunity Regional Opportunity Local Opportunity Tools and Development to Assist Credit Unions National Economies and Collaboration Regional Variations Optional Implementation

12. TV Spots from last national campaign

14. Value Proposition Canada's Credit Unions - will give Canadian business owners access to a collaborative network of commercial banking professionals ...... - to offer more responsive, flexible services across a complete range of financial products and innovative ideas that are tailored to owner needs and geared to mutual success.

15. Objectives: • Primary Creative Objectives: • Increase awareness/familiarity of credit unions amongst Canadian business owners • We are business smart – we get it • We offer small business services and products • We understand business owner needs • Engage commercial members/prospectus in a new conversation that positions credit unions as business smart and worthy of consideration

16. Targets • Audiences include: • Credit union employees • Credit union business members • Canadian business owners • Canadian business media • Influencers (accountants, lawyers, etc.)

17. Communications Strategy • Create and deploy a national marketing communications program • use an integrated communications and advertising program • create an internal web platform to connect credit union business banking experts • create an external web platform to build a credit union business owner network • position credit unions as business smart, savvy and capable.

18. Communications Tactics

19. Creative Vision • Use emotive, empathetic “hooks” • Position us a more responsive, better aligned with small business. • Leverage interest in those hooks to attract business owners to the deeper, web-based value-proposition. • Be genuine. Demonstrate that we “get” the audience

20. Creative Vision (continued) • As a business owner, it is the network of people that you develop over time that helps you get ahead. • Our personal approach makes business banking @ Canada’s credit unions better. • “experts” have more influence over the that impact “you” and your business.

21. Creative Principles Do • Focus message on the audience • Employ breakthrough empathetic emotion • Bank bash • Position credit unions or members in a negative light • Employ negative humour • Position credit unions as overly aggressive Do Not

22. Principle Support Tactics • Complement provincial campaigns where possible and leave neutral where objectives do not align. • Recognize that nationally we are building SME service awareness, recognize the impact that this has in those jurisdictions that are building full spectrum brands.

23. Business Owner “Hooks” Our campaign leverages these well-known and documented obstacles: campaign leverages these well-known & documented obstacles. • Red tape • Inflexibility/adaptability • Impersonal relationships • Changing personnel • Respect

25. External Media Summary

26. TV Ads TV Ad # 1 TV Ad # 2 TV Ad # 3 TV Ad # 4

27. Sme spots show here

34. Ad Tracking Timing: • Baseline research – last week of January • Interim results – last week of February • Post results – first week of May Metrics: • Recall – the ad must win viewers’ attention to get noticed and the brand must “get credit” • Response – the ad needs to trigger a rational and/or emotional consumer response to the brand

35. Results to Date • Budget only permitted light GRP weight levels • The goal at this point is to see positive movement in the recall metrics and response metrics • Hard targets will be established at the next committee meeting

36. Results to Date • Recall • Metrics have been stable • Diagnostics show ads have potential and there are no red flags • Two hinderances: • Brand linkage • Low media weights

37. Results to Date • Response • Aided consideration is trending up • Specific image ratings for credit unions have become more positive • Gains in Ontario and Atlantic markets

38. Ipsos Conclusions • Implications of findings from this wave of research are: • Potential for a national campaign to change perceptions of, and in turn, increase interest in credit unions • Continuing with the current creative strategy and platform is key • Fine-tuning creative to strengthen brand link is a priority, • Increased media budgets may be required to ensure optimal reach, and in turn, stronger shifts in perceptions.

39. Results to Date • www.bizwyk.com • 1,535 visits, average 8.6 pages per visit • 1,287 managers, 483 multiple visits. • www.canadascreditunions.com • 15,697 visits, average 4.6pages per visit • 15,210 visitors, 1171 return visits. • Anecdotal evidence of referrals and inquiries arriving at credit unions across the country. • Media drivers are print, followed by television.

40. Results to Date • Canadascreditunions.com searches (2 months) • Visitors have searched for key contacts 1290 times.     (Average of 643/month.)

41. Closing Comments • We are 3 months weeks or so into a three-year image and awareness program. • System engagement is strong. • Web traffic is exceeding our expectations. • All participating provinces have provided their year-two funding commitment. One province is not participating in the media components.

42. Questions?? • Gene Creelman • - - - - - • Chairperson • Image & Awareness Sub Committee of the • National SME Initiative • - - - -Vice President, Marketing and CommunicationsInterior Saviongs Credit UnionT: 250-869-8243gcreelman@interiorsavings.com