Make offline on line and pick a better name
Posted by Doug Williams on January 21st, 2008
Denise Wymore sent me this blog post about Alliant Credit Union. Dave’s comment at 2:42 AM, January 18, 2008 summed it up:
I had the same problems. It is difficult for me to put my money in an institution that:1) cannot even get their application process to work correctly, and
2) cannot be clear on who can be a member who who cannot.
Even though 5.40% is a good rate, I will also find another credit union or bank to park my money.
I think it amplifies the point I tried to make with my last post: CU websites should be operations oriented, not just sales oriented. Make the online experience as close to the in-person experience as possible.”
Why can’t the credit union staff use the online application form while taking applications in-person? This solves several problems:
1. It streamlines the application process for operations 2. It familiarizes employees with the online processes (a CSR laughing and admitting the online application isn’t reliable…really?) 3. It tests the system. It’s easier to fix a problem if you can replicate it on the spot.
Dave’s second point is salient. Most CU’s provide FOM information on their sites, and I think they should continue to work to make it crystal clear who can or cannot be a member. I think this also helps the credit union remind itself of who it is serves.
It touches a branding point, too. I’m not a fan of the diaphanous CU name. Be who you are. Alliant was United Airline’s Employee’s Credit Union. I understand the need to grow and diversify. But moving completely away from who you are as a CU is disconcerting. Why not build the brand around your original sponsor SEG and grow from there? When picking a new name, why not put more effort into staying close to your primary SEG or community?
Of course, I also don’t think sports teams should not have mascots/names that can’t be pluralized.
Doug: On the first point, it’s a strategy/segmentation issue. There’s a segment of consumers who value operational effectiveness/efficiency over everything else (see my blog posts on the Crankys for further details). It’s a strategy issue, cuz you can’t be all things to all people. If a CU is going to compete on operational efficiency (which does NOT mean the lowest price) then it has to gear its ENTIRE strategy around that. Look at Southwest Airlines for a good example from another industry. They’re not touchy/feely friendly—they’re on time.
On the 2nd point, I think you need to keep in mind that many CUs have changed names trying to keep up w/ the ongoing merger activity of the sponsoring employer. When HP acquired Compaq, it changed it’s name so as not to alienate the Compaq people. Is that not OK in your book?
To your last point, maybe that’s why The Heats have lost 13 games in a row.
Interesting juxtaposition. Maybe Alliant is who they are and who they need to be, not who they once were.
Also, please explain what you mean by “diaphanous.” I had to go look the word up and it doesn’t seem to fit. At Dictionary.com, “diaphanous” is defined as “sheer, thin, transparent, vague, hazy, delicate.” Maybe I’m just unfamiliar with the word’s more common connotations.
Phonetically, the name ‘Alliant’ seems strong, confident and crisp – a contrast to “diaphanous.”
Jeff and Ron, I really appreciate the input.
There is definitely a case for name changes as the primary sponsor or the geographic charter changes. Credit unions are absolutely allowed to change their names. However, I think the credit union should give deference to the original name; the original charter; the original FOM.
In the case you presented, HP did a fantastic job of changing its name. It was significantly changing its FOM to incorporate not just another company but a rival company. It picked Addison Avenue in homage to the location of Bill Hewlett’s and Dave Packard’s garage that ultimately led to Hewlett-Packard. Can we make Addison Avenue a model?
Jeff, you’re right, Alliant is a phonetically strong word. And your point of credit unions looking at who they are and need to be is salient. However, I just wonder if its sacrificing what they were for what they need to be. To me, that’s a mistake.
I feel credit unions moving from a specific name (Telco, Teachers, Employees…you name it) to a completely conceptual name divorces the CU both from the original sponsor and its locale. For credit unions – financial institutions so tied to geography and FOM – such conceptual naming makes the name delicate, thin, hazy and vague: diaphanous.
I don’t mean to sound like a curmudgeon; I really feel there’s value in history and continuity.
Oh, and I’d like to blame the Heats woeful streak on their name, but the Magics sit atop their division. So there goes that theory. Back to the drawing board for me.
I know I would disappoint many if I didn’t ring in here. The issue of name change hasn’t come up in awhile.
If the name fits in this sentence, it sholdn’t work for a credit union:
“Ask your doctor if Alliant is right for you.”
That’s all. d.
I wrote a post recently on name changes. I feel like the name of your credit union should communicate who you are, who you serve, and what you stand for. It shouldn’t be some ambiguous phrase.
If you are changing your FOM, you should change your name to represent who you are serving. Alliant doesn’t do that for me. There’s not even a hint of where they are located or the demographic they serve. If I am going to identify myself with an institution I want the name to be something that tells me what “club” I’m joining.
Andy,
Based on your naming requirements, I give you:
“The Federal Credit Union of those who live, work, or worship, or are related to someone that lives, works, or worships in Fairfax County” ;)
At the heart of naming issue is the fact that, unlike the “good ol’ days”, the membership requirements for many CUs are just about as ambiguous as you can get.
Is the name the only thing that bothers you folks? Must be a darn good credit union, if thats their only problem.
In response to the first question of why can’t the credit union staff use the online application when taking the application in person, they can if they use a product such as XpressAccounts. This is a web based member acquisition and account opening and funding software. It can be deployed as member facing; branch facing; or in both configurations. If used in the latter, the credit union employee will use the same application as a member would use from a remote location.
Alliant isn’t any different than a bank for service. You call there and get someone from an office in Texas that doesn’t even work there. When people are going bankrupt and losing their homes all they can do is talk about their loans. How much money is being spent with bad loans, slick advertising etc. Doesn’t sound like this place learning much from United. One of my friends works there and told me that a lot of money is spent on credit union trips and events. She actually likes it there because she’s traveled to a lot of places and did wine tasting out in California, went to some ski resort and Utah and Hawaii. Is this place suppose to be for the members? Sign me up!