By Duane Hogg
What does “local” really mean and why is “being local” so popular with Millennials?
Local has become so much more than just a word that defines proximity or size. Local embodies an idea that represents the way people think, feel and connect with their community. Local is a way “to be,” and local businesses are thriving from the increasing need to stand for something bigger and support one another.
In essence, the community is standing together to compete with large corporations, chains and commercialism. Consumers are looking to rebuild the cooperative spirit of “People Helping People,” and this connection with the concept of local presents a significant advantage for credit unions.
So, how can credit unions leverage local?
Size doesn’t matter, service does. This means building meaningful relationships and leveraging the right technology to provide the best overall member experience. Banks are spending billions of dollars to be on the cutting edge of technology.
However, based on a recent MoneyTips survey, only 43% of their current Millennial customers are planning to stay with them. It’s not about who has the latest and greatest widgets or apps; it’s about how technology can enhance the member experience. Yes, Millennials want tech, but they don’t just want it, they demand and expect it. They live in a digital world with technology at their fingertips, so they expect everything to fit into that lifestyle, but technology itself doesn’t build relationships and loyalty, personal service does.
More Than Just the 'Cool Factor'
Service is the foundation for building durable relationships with a younger generation at every human and digital touchpoint. Local breweries and coffee houses provide more than just the “cool” factor. They operate on the idea of building relationships with their customers and connecting them with one another. While Starbucks misspells your name on a cup of overpriced coffee, your local coffee shop always remembers your name, your order, and they can tell you with confidence the exact location where their beans are grown. Millennials take pride in connecting with real people, genuine stories, and authentic experiences.
Credit unions of every size must think, and act “local.” It’s time to get back to marketing the special sauce that makes credit unions truly different. The majority of Millennials don’t know why credit unions are any different than banks. They may even see them as the dinosaurs of the financial industry, with less technology and an exclusive membership. Why? Because the majority of credit unions are putting too much focus on trying to compete with big banks at a products and services level and are not applying enough energy on the “why” of credit unions! Credit unions offer unique solutions, such as shared-branching, annual dividends and pride in local member ownership. Credit unions are real people helping others reach their financial goals.
Duane Hogg is a digital strategist and credit union storyteller, creating content that compels Millennials to not only think but act. In addition to content marketing for the Make Your Money Matter campaign, he also manages the Engagement Builder platform, which allows credit unions to listen, publish and engage with their audience across various social media channels. In his “free time,” he can be spotted at corporate events and tradeshows, engaging with attendees and executing our social media strategy. Follow him @iamduanehogg