REI and the credit union spirit
While at the CUES Experience a few weeks ago, a number of great ideas were discussed both at the conference and at other social events. One such idea revolved around the common bond/affinity aspect nearly all credits unions were founded on and how that seems to be waning in popularity. Aside from some small, specific examples like Mt. Lehman and San Francisco Fire, most CU’s seem to be chasing the growth for growth’s sake model and going after everyone with a community charter.
During a conversation over dinner, a sporting goods store called REI came up. For those who have been to an REI, you know that it is probably one of the best customer-oriented store you’ve ever been to. What makes REI so special? They are manically driven by their products and their customers. Their staff uses their product. They know what works and what doesn’t. Their staff is very well educated for the department they work in. When you go to a Sports Authority, Foot Locker, Dick’s, or Joe’s, how many staff members at those stores can show you how to lace shoes differently to compensate for different shapes of feet or know how to measure your torso starting at your C7 vertebrae?
REI staff loves the outdoors, as do their customers. And it comes through dramatically when they are “selling” product. Walk into an REI, however, and you’ll never feel sold to because they are just trying to get more people to enjoy the outdoors.
So what makes REI so special and what can credit unions learn from them?
- REI knows who they are. Most credit unions do not. They are outdoor enthusiasts and love to help others get involved. They don’t try to be everything to everybody. They specialize in outdoor adventure and that’s it. CU’s need to figure out who they are if they haven’t already how they can meet the needs of their members.
- They have passion. They are passionate about helping people and the outdoors, not selling product. Their employees love what they do, they love what their products have to offer, and the love helping people. Getting passion for FI products it tough, but having passion for helping people fulfill their financial dreams is a different story.
- REI has the co-operative spirit. Check out the email I got from REI when my wife and I first joined. What’s the first thing you notice? I see welcome to your co-op, not the REI logo. The big part of REI membership: their 10% annual dividend. That makes being an REI member actually mean something. Not too many CU’s actually pay annual dividends anymore. Not only are there financial benefits, REI does a ton of charity work and stewardship activities that align with their customers.
Credit unions started as a cooperative venture, but so many CU’s are just converting to community charters and growing because they feel like they have to. Ron had a great post about our visit to Summit Brewing and some of the things CU’s could learn from them. Namely why they need a beer. Summit Brewing and REI make two great examples of companies that CU’s could learn a lot from. Along the way, CU’s have lost the cooperative spirit and we need to get it back if we want to survive, let alone thrive.
Awesome post. Really got me thinking about what CU’s are all about (or should be all about).
Thanks again.
BenJoe
REI also carries its culture through all of its radio advertising, store design (http://www.treehugger.com/files/2008/05/rei-retrofits-11-stores-with-solar.php), and non-traditional offerings (http://www.rei.com/adventures). They live the brand and are a cooperative that’s positioned for the 21st century. CUs can learn a lot from REI.
Smart. Based on the international operating principles of cooperatives, credit unions and REI should really be collaborating.
I’d love to see them work with a group of cedit unions in every city.
I joked with someone at Experience that we should approach REI about forming a CU for their members… Seems like a natural fit to me!
Robbie – Though I have never been to an REI (actually never heard of it before this post), your description of the organization was very vivid. It makes me think of Disney, Chik-Fil-A, and UKrop’s – organizations that somehow find a way to provide consistently excellent service.
What’s the secret? How do these organizations pull it off? Is it salary/bonus structures for employees? Is it outstanding management? Is it quality products? Is it employee training?
I’d argue it’s all of the above, with a twist. Essentially, compensation packages, training, management, and product/service offerings must all be aligned to create a “WOW” customer experience. Alignment means no days off from the mission: consistent implementation, constant improvement, and total unwillingness to accept less than superb employee performance. Tie this with a great offering, and you have something truly special.
None of this happens without great employees. The afore-mentioned organizations have been able to attract and retain quality employees because they make employees feel like they’re part of something special – something unique.
What is your credit union doing to attract dynamite employees? How are you rewarding them? How are you making sure that their performance is consistently superb? Are you providing members with services or experiences that are unique? Is your management team dedicated to making your credit union outstanding, or ho hum? Is the biggest driver for decision-making the balance sheet or member needs?
A good friend of mine used to say, “you can’t make chicken salad out of chicken scratch.” If credit unions cannot attract and retain top-notch employees dedicated to the principles above, any hope for REI-type service delivery is a nothing more than a dream.
Differentiated and superior products and services are at the heart of brand differentiation. Only then will the love flow. Everyone in and around credit unions keeps talking about creating a brand that is adored but there is very little talk about actually creating superior products and services. Its hard to love a commodity.
Can you replace “I love REI because I love the products and customer service experience” with “I love my Credit Union because I love the products and member service experience?”
CUs need to actually create something that’s new and just not another bank knock-off.
Boy, I sound like the CU Skeptic today.
I just reread my comment and realized that I failed to mention that your post is excellent and really proves that when people have something in common based around a deep sense of belonging it is very powerful and creates real loyalty. Through in some great products and its a recipe for success. There, that was positive!
One of my favorite things about the REI in Minneapolis is the climbing wall. It gives me a chance to try out their products before i part ways with my money. It also makes the place look cool (from the inside and outside).
I also like ROI’s e-mail marketing system. I admit – their constant e-reminders make me want to go update some of my camping gear for the summer.
I’ve recently had my first REI experience as I am a newlywed and have married into an outdoors family….I am loving every second of it. As I read a bit about REI I couldn’t believe my eyes… it was exactly what I felt that Credit Unions should be projecting at the same rate to their staff and members! I was ready to drop the cash to become a member of the co-op right away even though there isn’t an REI anywhere close to my current home in Richmond, VA. How to instill the excitement to CU staff to sell products for a non-profit financial cooperative with the same enthusiasm as the salesman at REI did while fitting me for a backpack?!