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CU Difference Committee. November 18, 2009 Michigan Credit Union League Livonia and Lansing offices. Web/Phone Conference Guidelines. Muting and unmuting On the phone, participants can mute their own lines by pressing *6 Unmute your line by pressing *7

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cu difference committee

CU Difference Committee

November 18, 2009

Michigan Credit Union League

Livonia and Lansing offices

web phone conference guidelines
Web/Phone Conference Guidelines

Muting and unmuting

On the phone, participants can mute their own lines by pressing *6

Unmute your line by pressing *7

Please do not place your phone on hold

Other participants will hear on-hold messages/music

agenda
Agenda

Call to Order/Roll Call

Minutes – August 25, 2009

Reports

MCUL President & CEO/Committee Ex-Officio David Adams

CU Difference Chairman Darren Cameron

Informational Items

A. Invoices in Membership Package

B. Creative Proposal for 2010

C. Research Results

D. Tentative 2010 Meeting Dates

VI. Adjournment

call to order roll call minutes reports
Call to Order/Roll Call – Minutes - Reports

Call to Order/Roll Call

Meeting Minutes - August 25, 2009

Reports

A. MCUL President & CEO David Adams

B. CU Difference Chairman Darren Cameron

iv informational items
IV. Informational Items

Invoices/Membership Package

One invoice for MCUL dues, CUNA dues, CU Difference contributions

Asking for 2010 contribution plus 2009 and 2010 MCUL dues rebates

Due out early December

iv informational items1
IV. Informational Items

Creative Proposal for 2010

media
Media
  • Campaign plan
    • 10-12 weeks
    • March/April start
    • TV and radio
    • Statewide
  • Other considerations
    • Web banners
    • Collateral
    • Web links to TV spots
    • Web content
iv informational items2
IV. Informational Items

C. 2009 research results

overview goals
Overview/Goals

Position credit unions as safe and secure

Take advantage of unprecedented opportunity to step out as a safe, people-focused option

Raise awareness of credit unions and programs

Invest in America

Increase membership overall

Improve perception among consumers and lawmakers

Cooperative advertising, grassroots lobbying and the Community Reinvestment Initiative (CRI) represent the MCUL’s three-tier approach to protecting and promoting the credit union difference

Focus on what credit unions have in common

Everyone can join

Better rates, fewer fees

Nationwide free ATM networks

Great service

methodology
Methodology
  • Telephone survey of financial decision-makers in Michigan
    • 800 interviews
    • Members vs. nonmembers tracked: 55% of Michigan residents are credit union members
      • Among nonmembers, 58% had been members in past
research objectives
To understand if consumers are “getting” the CU Difference message

Surveys look at campaign impact in several areas

Awareness

Usage/satisfaction

Is everyone eligible?

CU vs. bank attitude comparisons

Invest in America discounts (new in 2009)

Research Objectives
advertising awareness
Advertising Awareness

Respondents were asked about their awareness of advertising for “financial institutions” in the past six months

26% mentioned credit union, vs. 18% in 2004

49% mentioned bank

We still have some work to do, but have made great progress

advertising awareness2
Advertising Awareness
  • Interestingly, gaps in awareness (bank vs. CU advertising) were largest in Detroit DMA and among CU members

28 points

27 points

advertising awareness3
Advertising Awareness
  • CU advertising awareness by nonmembers shows a significant and steady increase since 2004
advertising awareness4
Advertising Awareness

Mentioned “Credit Union” when asked “For which types of financial institutions do you recall seeing or hearing advertising within the past 6 months?”

2008: 55%

2007: 49%

2006: 51%

2005: 56%

2004: 48%

Total 2009 CU Ad Awareness

= 55%

2009

Answered “Yes” to “Do you remember seeing or hearing any advertising about Michigan credit unions within the past 6 months?”

advertising awareness5
Advertising Awareness

Total hits on lovemycreditunion.org increased significantly over months that ads did not run on TV and radio

cu vs bank image
CU vs. Bank Image

The gap between the CUs and banks grew in favor of CUs on many attributes

deposit account considerations
Deposit Account Considerations
  • Respondents were asked what type of financial institution would first come to mind if they wanted to open a deposit account
  • Consideration 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 considerations
Lender considerations
  • Respondents were asked what type of financial institution would first come to mind if they wanted to get a loan
  • Total CU consideration is 57% vs. 68% for banks

Don’t know: 10%

credit union eligibility
Credit Union Eligibility
  • Reached a new and statistically significant high in 2009
  • Consistent increases since 2004
credit union eligibility1
Credit Union Eligibility

Understanding that everyone can join increased in each market as well

invest in america discounts
Invest in America Discounts

Based 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 discount

67% of those financed their new vehicle through a credit union

% Yes By Area / Subgroup:

Total Michigan 36%

CU Members 42%

Non-members 30%

Detroit DMA 31%

Grand Rapids DMA 41%

Other Michigan 43%

invest in america discounts1
Invest in America Discounts

How Did You First Learn About This Discount?

TV 28%

Credit union 20%

Friend / relative 13%

Dealer 11%

Newspaper 11%

Direct mail 6%

Radio 6%

Web 4%

  • More than one-quarter of respondents who heard about the discounts first learned about it on TV
  • Study results suggest that CU Difference TV/radio ads were noticed by many consumers
general opinion of credit unions
General Opinion of Credit Unions
  • Overall CU favorability was solid at 80%
  • Non-members significantly higher in 2009 vs. 2004 66% vs. 58%
overall satisfaction
Overall Satisfaction
  • 69% of CU members are very satisfied with their PFI
    • For banks, 43% are very satisfied
implications
Implications
  • Overall the research indicates that the cooperative advertising effort is effective and meeting its defined objectives
    • Awareness: Continues to increase
    • Deposit consideration: Gap between credit unions and banks closed from 22 points in 2004 to 8 points in 2009
    • Everyone is eligible: Significant gains in all media markets in 2009 that anyone can join
    • Call-to-Action: Hits to www.lovemycreditunion.org increased dramatically
implications1
Implications

Credit unions have made significant progress relative to banks

Awareness

Image

Deposit consideration

2009 campaign was successful in “breaking through” to many financial decision-makers

No 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 activity

Statistically 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

implications2
Implications

The average ratings on most image attributes were higher for credit unions than for banks

This has been true each year the study has been conducted

Credit unions did suffer declines on many image attributes, but banks suffered worse declines

The gap in image between credit unions and banks grew significantly in favor of credit unions

Despite image declines, 80% gave a “very favorable” or “somewhat favorable” rating for their overall opinion of credit unions

CU members remain significantly more satisfied than bank customers

With recent decline in image, credit union advertising should continue to encourage trust and to reassure consumers about the safety of credit unions

The financial crisis is the likely culprit behind the abrupt and significant deterioration in image

The average consumer does not necessarily distinguish which types of financial institutions were connected to the crisis

implications3
Implications

Banks, with their much-larger advertising budgets, cannot be expected to sit still

Future bank advertising is likely to attempt to heal recent damage

It makes sense to invest as much as possible in cooperative advertising

Maintain progress

Strive for further gains

bank cu spending comparison gr ka bc mn media market
Bank/CU Spending ComparisonGR/KA/BC/MN media market

2009 CU Difference (TV/radio) spend

$349,546

Bank comparisons

All financial advertisers

2008 TV/radio spend: $1,621,798

All advertising: $4,467,299

Huntington National

2008 TV/radio spend: $205,722

All advertising: $407,465

Fifth Third

2008 TV/radio spend: $294,719

All advertising: $645,824

Here’s our impact.

This is what we are competing against!

bank cu spending comparison flint media market 2008
Bank/CU Spending ComparisonFlint media market 2008
  • 2009 CU Difference spend
    • $342,380
  • Bank comparisons
    • All financial advertisers
      • All advertising: $1,356,592
    • JP Morgan Chase & Co. (Top spender)
      • All advertising: $310,796
    • Fifth Third (2nd highest)
      • All advertising: $241, 247
    • National City Bank (3rd highest)
      • All advertising: $203,048

Here’s our impact.

This is what we are competing against!

bank cu spending comparison detroit media market 8 1 2008 to 7 31 2009
Bank/CU Spending ComparisonDetroit media market8/1/2008 to 7/31/2009
  • 2008 Fall plus 2009 CU Difference spend
    • $836,102
  • Bank comparisons
    • All financial advertisers
      • 2008 TV/radio spend: $13,525,867
      • All advertising: $31,683,737
    • National City (Top spender)
      • 2008 TV/radio spend: $2,164,448
      • All advertising: $4,174,460
    • Fifth Third (5th highest spend in market)
      • 2008 TV/radio spend: $1,010,129
      • All advertising: $2,810,965

Here’s our impact.

This is what we are competing against!

informational items
Informational Items
  • Tentative 2010 Meeting Dates
    • Tuesday, February 16, 2010
    • Tuesday, May 25, 2010
    • Tuesday, August 17, 2010
    • Wednesday, November 10, 2010

VI. Adjournment

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