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What Would Jerry Do?(If He Was a Credit Union CEO)

Ron ShevlinSenior Analyst

Aite Group

Management “lessons” from the Dead

What Would Jerry Do?

Regulations

Growth

Charter conversions

Mergers

Capital adequacy

Strategy

Engagement

Technology

What Would Jerry Do?

Strategy

Engagement

Technology

What Would Jerry Do?

Strategy

Engagement

Technology

www.aitegroup.com Page 9

“Lack of preparation, direction and cooperation have made this album the most unreasonable project with which we have ever

involved ourselves.”

“You are now branded an undesireable group.”

“It all adds up to a lack of professionalism. The Grateful

Dead is not one of the top acts in the business as yet.”

What Would Jerry Do?

Strategy

•Create new business model

•Use free to create network effect

•Vertically integrate

What's your strategy?

Superior rates

Branch location

Member service

Other

Bank of Little Hope

Uneedus Bank

First Bank of Whynot

“If you want to get rich, there’s Little Hope for you.” “Uneedus. More

than you know.”

“Why bank with us?Whynot.”

“We’re oneBad Axe Bank.”

Bad Axe Bank

Is service an effective differentiator?

• Service may be what your CU does best, but it doesn’t mean your service is comparatively better

• Service means different things to different people

Disciplines of market leaders

• Operational excellence– Processes optimized and streamlined to minimize cost and

provide hassle-free service• Customer intimacy

– Focus on helping customers understand exactly what they need and ensuring the solution gets implemented properly

• Service leadership– A focus on the core processes of invention, product (or

service) development, and market exploitation

Mapping disciplines to FIs

Operational excellence

ING Direct (US)

ING Direct

“To promote customer homogeneity and keep costs down, ING Direct won't hesitate to fire customers who demand too much. Better to win over customers with shrewd marketing and good rates wrought by the cost

efficiencies of doing business online.”

Bank Technology NewsDecember 2005

Mapping disciplines to FIs

Operational excellence

ING Direct (US)

Customerintimacy RBC (CA)

RBC

“In 1999, RBC reorganized into a customer segment-led organizational structure.

Each primary segment is led by asegment manager who jointly plans and shares

P&L responsibility with product line counterparts.”

“The future of financial services: Intelligent growth”

IBM Institute for Business Value

Mapping disciplines to FIs

Operational excellence

ING Direct (US)

Customerintimacy RBC (CA)

Service leadership USAA

USAA’s investments in service leadership

• Remote deposit capture• Member ratings• Auto Circle• PFM

What Would Jerry Do?

Strategy

Engagement

Technology

CBS: "Ms. Pelosi is a huge Dead fan, her

spokeswoman said."

"I'll show you the bathroom. This is my prized possession, a signed poster of the Grateful

Dead."

What Would Jerry Do?

Engagement

•Facilitate member-to-member contact

•Total customer experience

What are CUs doing to engage members?

Source: Aite Group survey of 54 credit unions Q1 2011

External

Internal

Benefits of product review pages

• Assisted selling• Member advocacy• Better market intelligence• Member engagement

Benefits of collaborative support

• Reduced call volume• Expanded knowledge base• Better employee training• Member engagement

What Would Jerry Do?

Strategy

Engagement

Technology

Keeping up with technology is a challenge

Source: Aite Group survey of 91 credit unions, January 2010

IT priorities are all over the map

Source: Aite Group survey of 83 credit unions, January 2011

Aligning strategy and technologies

Operational excellence

Purely mobileIntegrated

social media

Customerintimacy

Financial advice and guidance

Service leadership

Integrated social media

Purely mobile

What Would Jerry Do?

Strategy

Engagement

Technology

(If He Was a Credit Union CEO)

Measure your online marketing maturity

Online marketing maturity model

LEVELS

Performed

Integrated

Optimized

Demandgeneration

Demandconversion

Accountcreation

PROCESSES

Ron Shevlinrshevlin@aitegroup.com@rshevlinhttp://marketingteaparty.comwww.aitegroup.com

Aite Group (eye-tay) is an independent research and advisory firm focused on business, technology, and regulatory issues and their impact on the financial services industry.