How to Prepare for the Mobile Future

As we approach 181.4 million smartphone users in the U.S with an eye toward 222.4 million, or 67.8% of the population, by 2017, it is clear that the prevailing trend in eCommerce is to break free from the confines of the desktop computer. Mobile devices, according to n-commerce technology vendor Branding Brand projects, will soon account for 39% of all traffic to the retail websites of Internet Retailer’s Top 500 e-retailers.

What are consumers doing on their mobile devices? According to Nielsen’s “Cross Platform Report,” Americans are spending a third of their smartphone time on social media. Clearly, the immediate implication for brands, cooperatives included, is that a social media strategy should be a mobile strategy and a mobile strategy a social strategy. It is likely that the business objective behind a social media initiative will be to drive traffic to a brand’s website – where, for now at least, most eCommerce takes place. It follows that to be competitive a brand’s website must be responsive to the many different mobile devices that will be following the links shared in social media. No brand can afford to lose 39% of its hard earned traffic.

The mobile revolution represents the first phase of the untethering of human connection. When social networks first gained prominence in the 00’s, many people were communicating at home on their desktop PC, or moderately portable laptop. Now, people are communicating on the road, at work, and everywhere in between. No longer tied to desktops, humans can connect and interact with friends, family, and brands as desired and needed.

Perhaps the second phase of the untethering of human connectivity will be the wearable revolution. Devices such as Google Glass and the rumored iWatch, will make us connected organisms, signaling a biological evolution as much as a technological one. By decade’s end, we may see what Brian Solis calls, the Internet of Things, “where devices and things connect to one another to perform certain tasks and/or track activities to improve what we already do or make possible what we’re trying to do.” The online and physical world will merge in a way that will, potentially, benefit humanity greatly. When objects that we use can learn and improve our actions simultaneously as individuals and populations, the possibilities for human growth and advancement are truly exciting.

Brands can anticipate this future as soon as today in social media. A social media strategy that engages and interacts individual users, responding to their needs in real time, approaches the efficiency and feedback promised by connected objects that can learn and respond. Solis’ future where we will “become insatiable in our pursuit of personalized feedback” will evolve, at least in part, from the successful Facebook brand pages and Twitter feeds of today, those that react and respond to consumers’ individual needs and desires.



With 21 different credit unions with more than 50 office locations and $4.7 billion in assets operating in New Hampshire, differentiation is vital to survival, not just amongst other credit unions, but within the larger financial services industry within which they operate. As the Financial Brand puts it:

“It’s a noisy and crowded financial services marketplace full of me-too competitors. If your brand isn’t well defined and clearly different, you’re not going to stand apart from the fray and get noticed.”

Credit unions, as financial cooperatives, have a responsibility to their membership to differentiate themselves and remain competitive. The New Hampshire credit unions that, I believe, are most effectively differentiating themselves are Service Credit Union, asset size, $1.5 billion, membership size, 129,991 and St. Mary’s Bank, asset size, $698 million, membership size, 77,177.

Eligibility to become a member of Service Credit Union is open to any individuals who live or work in the state of New Hampshire, with the exception of Coos County. More importantly, though, Service Credit Union is open to all military and civilian employees of the Department of Defense worldwide. Wisely, Service Credit Union, in addition to opening its membership to people living with the community within which it operates, has continued to target a specific demographic for membership, the military. By targeting this specific demographic, Service Credit Union can differentiate themselves, through their marketing efforts, by focusing on military matters.

This is most evident in their use of social media. Service maintains active Facebook, and Twitter accounts and a lesser used Youtube account. On Facebook and Twitter, the message is clear and direct. In addition to the requisite community involvement information that all credit unions post, Service send messages directly to their target demographic such as this post from Thursday, April 11th 2013:Picture 1

The message on Twitter is the same:
Picture 3

On Facebook, Service have an impressive 2,926 “likes”; on Twitter a solid, 949 followers. Their posts are viral because they are focused and directly relevant to their membership. It follows then that Service’s social media efforts support its strategic goals as they effectively differentiate the Service brand within it’s target demographic.

St. Mary’s Bank, like Service Credit Union, are an open credit union, offering membership to any individual residing in New Hampshire. But, unlike Service, they do not have an obvious target market. St. Mary’s Bank’s point of differentiation comes form their unique claim to being the nation’s first credit union. On their website they state that they are proud of their heritage and wish “to help members achieve their financial goals by providing best in market service and trusted financial advice”.

Their Youtube account is the clearest evidence of using social media to pursue their strategic goal of offering outstanding service while differentiating themselves as the nation’s first credit union. Their account has an impressive 6,582 views, owned mostly by the video “Bloopers: Invitation to Meredith Viera, Today Show Host”. That video is funny and succeeds at showing the brand’s personality while also celebrating the cause of its founding 100 years ago, its point of differentiation.

St Mary’s are not as effective at differentiating their brand as Service, but they have shown some successful efforts to do so. Their Facebook account is growing with an impressive 2,068 “likes”, most arriving this year. I believe that if they were to cross promote their Youtube account more they would be able to better differentiate themselves. There is a video entitled “Re-enactment of the founding of the nations first credit union”, that is overlong and not highly viewed, only 151 in four years. With a re-edit it could become a powerful viral document that clearly establishes their point of differentiation.

It is understandable that credit unions struggle to differentiate themselves. Most began their lives tethered to a parent company or organization. Since the trend began for credit unions to break free from parent companies and open membership to the outside community, most have been unable to stake out a new identity for themselves. Service Credit Union and St. Mary’s Bank are two good examples for all credit unions to follow.

About the author: Ian is an eCommerce Specialist for Triangle Credit Union. The views here are his own and not those of his employer. Ian believes in “co-operation among co-operatives”, and hopes that by writing about what is working for credit unions in NH others will benefit.

The Social Risks for Co-operatives

Slide1As I have discussed, social media presents great opportunity for Co-operatives.  The International Co-operative Alliance has set forth an ambitious plan that “envisions co-operatives to be the fastest growing form of enterprise by 2020”.  It is likely that social media will be the harbinger of this message and is thus vital to the cause.  With great opportunity though, often comes great risks; namely, for co-operatives, in the form of compliance and regulatory risks.

Many co-operatives operate in industries, financial services, insurance, and even agriculture, that are heavily regulated.  I have discussed how credit unions, financial co-operatives, have been early adopters of social media.  They are thus the first co-operatives to deal with the risks.  It seems that many have found the risk too daunting to overcome.  A Financial Brand article found that “Credit unions on Twitter struggle to attract followers even after being active over two years, and 1 in 5 just give up entirely”.  The article found that “the vast majority of tweets sent are one-directional, often with links back to a press release or similar credit union web page.”  Such dry, safe content is indicative of an industry constrained by compliance and regulatory concerns.

There is hope for co-operatives, though, as according to Nichole Kelly in Social Media Explorer, compliance and regulatory risks can be managed.  PR risks, which fortunately co-operatives rarely face, are much harder to manage due to their unpredictable nature.  Compliance and regulatory risks are known; a credit union knows that it must take care in tweeting current loan rates, for example, as any inaccuracies would be published inaccuracies and thus open to fines and censure if incorrect.

Quitting Twitter and abandoning social media are not the answer to regulatory risk.  Creating a plan that includes active engagement and risk management is the solution. Suncoast Schools Federal Credit Union were recently caught over-thinking their social media strategy, likely due to fear over compliance and regulatory risk presented by Twitter.  After a year and a half of inactivity they jumped into Twitter to respond to an odd and unsavory tweet about one of their locations two days after it appeared.  The delay and their strange response turned into a PR risk once the Financial Brand picked it up for this article.

Co-operatives need to be active and engaged with social media if this decade is to see the growth the ICA predicts.  There is no need to shy away from engagement due to regulatory concerns, as these are risks that can be managed.

Where Can I Find a Co-operative?

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2012 was the International Year of the Co-operative, and its success in creating awareness of co-operatives worldwide has prompted the International Co-operative Alliance (ICA) to call for a Co-op decade.  By 2020, the goal is for co-operatives to become leaders in economic, social and environmental sustainability, a preferred business model, and the fastest growing form of enterprise.  But, the ICA acknowledges that this is a strategy that they cannot move forward with alone.  They state that in order for the Co-op decade “to be meaningful and effective, it needs to be taken up and endorsed by national bodies, by individual societies, and by all people who believe in the co-operative way of doing business”.

The next decade will require “bold initiatives and clear implementation plans”.  I believe the answer will be social media.  But let’s here consider what role a mobile social media application could play in these implementation plans.

The first step in creating awareness of co-operatives will be first to alert consumers of where they can find co-operatives.  Geolocation apps will be vital to this phase of the plan.  Naturally, Foursquare, being the leading location-based social network would be the mobile social media application of choice.  With Foursquare, users can check into locations they have visited using their phones and when they do check in, they can alert their Facebook friends and Twitter followers of where they have been.  According to Brian Honigman in SocialMedia Examiner, “Foursquare is the ideal platform to bridge the gap between your offline and online audience in an affordable and scalable way”.  The opportunity for co-operatives on Foursquare is huge, but at the present it seems to be an opportunity that is largely being missed.

In my last post, I discussed how credit unions, financial co-operatives, were successfully using Facebook to spread brand awareness.  They have been early adopters of social media and as such have been out in front of other co-ops.  Many are on Foursquare, but check-ins are limited and engagement relatively low.  That extends too to food co-ops.  When I searched Foursaquare for co-operatives in NH, the only one that came up was the Concord Co-Op.  They had limited company info and only 40 check-ins from 30 people.

There are two reasons why I see co-ops as not being successful with location based services such as Foursquare.  First, they are not properly categorizing themselves.  One of the key tenets of the co-operative movement is “Co-operation among co-operatives”.  Credit Unions should categorize themselves as co-operatives, so should the Concord co-op, currently listed as Uncategorized.  This would enable interested consumers to better see how the movement is represented in their area.  The second reason, is that check-ins are not being rewarded.  Co-operatives could take a page from this successful user Bright Eyes Family Vision Care.  Despite being a non-traditional venue for check-ins (as co-operatives certainly are), the owner increased engagement and awareness by offering odd and exciting promos, such as homemade hot sauce.

If Co-operatives are to truly emerge as the fastest growing form of enterprise in this decade, they will need, first, to let people know where they are.  Foursquare, a mobile social media application, is currently the best tool for them use.

Co-operatives unite and let the check-ins begin!

Social Media Lessons to be Learned from Financial Cooperatives

To consider how cooperatives should best use social media to connect with members and potential members, I will look at the state of the social media within the financial cooperative, or Credit Union, industry.  According to the Financial Brand, “retail banking has consistently ranked among the earliest and most aggressive industries to adopt social channels”.  Never to be outdone by their shareholder-owned competitors, Credit Unions have also been aggressive adopters of social channels.  As early adopters, financial cooperatives can teach the cooperative movement many lessons from what works, Facebook pages, to what does not work (at least not yet), Pinterest boards.

A quick survey of financial cooperatives in NH shows an active and engaged industry. Bellwether Community Credit Union , Granite State Credit Union, Service Credit Union, St. Mary’s Bank, and my own, Triangle Credit Union, all actively manage a Facebook page.  Posts on Facebook range from the community minded, to inform members of local events and sponsorships, to financial advice, often done through the resharing of fin lit blogs, and general Credit Union announcements, during the recent snowstorm, Nemo, all took to Facebook to inform members of branch closings.

Facebook is a great member-facing tool as it is where many of a cooperatives’ members and potential members are located.  A cooperative benefits greatly when they create shareable content on Facebook. For example, Bellwether’s branches and offices recently participated in the Go Red for Women campaign to create awareness of heart disease.  A photo collage of the event was posted on Facebook.  The post received 26 likes and 3 comments, placing Bellwether positively in the news feeds of each of those who took the time to engage.  Here cooperatives can see an example of how social media can be used to share the message of community, which is tantamount to the success of any cooperative.

Beyond Facebook, Bellwether use Linkedin, St. Mary’s, Triangle, and Service use YouTube, and Service and Triangle use Twitter.  Triangle also maintain a blog, to which I am a contributor.  There is no doubt that the adoption of these different tools create additional platforms for listening but are they truly capable of engaging?  A look at Pinterest boards shows how aggressive early adoption can force a cooperative down a narrow and unfocused path.

A Financial Brand study of Pinterest reveals that a great deal of time and effort may be misguided when it comes to social media use.  They cite the example of Fireman Community’s use of Pinterest.   As I mentioned earlier, the banking industry and by extension the financial cooperative industry, are quick adopters of new social media tools.  In 2012, Pinterest was all the rage, with Banks and Credit Unions alike directing efforts toward the image-sharing site.  But can their be any value for a financial cooperative with only intangibles to sell to engage in a tool that makes sense for restaurants and clothiers that have a need to display visualizations of their products?  Financial Brand’s analysis of Fireman’s determined that approximately 67 hours were spent maintaining the page to net 274 followers of which many are other Credit Unions, marketing professionals, and not in fact members.  Making the answer a resounding “no”.

In the comments of the article an articulate and fascinating argument plays out.  Fireman’s defend their use of Pinterest, stating, “Pinterest is part of our holistic multi-channel content strategy, not just another social network…That means we’re not just wasting time on Pinterest; we’re integrating it into our overall communication strategy.”   A worthy and admirable response, but the resources of a cooperative are generally limited.  Consideration should always be given to utilizing only those tools that have been proven to be successful.

Financial Cooperatives, and other coops by extension, must use caution when proceeding with social media channel adoption.  According to the Financial Brand, “65% of consumers surveyed say that they would stop using a brand that upset or irritated them as a result of their social media behavior.”  Coops run the risk of pushing themselves unfavorably on potential members and of publishing irrelevant and unnecessary content because they feel the need to communicate or participate in new channels; the more channels, the thinner and less relevant the content will be.  Social Media is as much about listening as it is about connecting.  Cooperatives will be successful and reap the rewards of social media as long as they focus on creating great content, and limiting themselves to participating in proven channels.

Ian – Southern New Hampshire University Grad Student

Co-opting Brand Recognition for Social Change

Social Media has proven its worth for corporations and political campaigns.   In 2012 social media was used to spectacular effect to create awareness for brands such as Obama ’12, Jetsetter, Ikea, and Sharpie.  But is Social Media’s true value merely brand awareness – where consumers passively engage with brands for the return of discounts, special offers, and campaign promises?  I believe there is a more lasting impact to be found, and that is in social media’s ability to form networks, beyond those naturally available by proximity, and thus inform users of the power and opportunity to be found within cooperatives.

Cooperatives are a natural expression of how people wish to do business. According to the International Cooperative Alliance, “A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise”.  In the past those autonomous associations were formed by proximity.  For example, my credit union, a financial cooperative was formed on the factory floor; born from a desire to provide affordable credit and to promote thrift to the mill employees of Nashua Gummed and Coated Paper Company, factory workers came together to pool their savings and create loans for those who could not otherwise afford the interest on a bank loan.  The values of coops are congruous with community and at the same time an important counterpoint to the shareholder driven business model of corporations.

Social Media provides many tools to educate, inform, and connect people with cooperatives.  Kristen Christian, a cooperatives advocate and highly effective social media thought leader, proved that Facebook was an invaluable tool to the movement when she founded Bank Transfer Day.  Created in response to the financial crises of 2008 where large shareholder owned banks burdened taxpayers on the way down with their need for bailouts, and attempted to burden consumers on the way back up with fees, Bank Transfer Day began as a Facebook event.  Individuals were encouraged to attend much like they would a friend’s birthday party.  The response was enormous and seismic.  Reports one year on stated that the event was responsible for Credit Unions netting 2.2 million members, almost double their normal growth.

Being fortunate to work for a credit union, I was introduced to Dr. Bill Branch, President & CEO of the World Council of Credit Unions.  Dr. Branch informed me of WOCCU’s efforts on Twitter (which I have been following since).  He indicated that the council saw a huge opportunity to build awareness through the micro-blogging site.  So much so, that they had tapped Charlene Li, one of the authors of Groundswell, to speak at the next World Council of Credit Unions gathering.  The pick suggests that Dr. Branch is prescient and aware of the way in which “people use technologies to get things they need from each other, rather than from traditional institutions like corporations” (Li pg9).

Social Media tools such as Facebook and Twitter have, in Christian’s case proven themselves, and in WOCCU’s case, surely will soon prove themselves, as valuable assets in connecting individuals in a way that transcends proximity, previously cooperatives’only tool of connection.  Great things are afoot and huge social change is imminent.

Ian – Southern New Hampshire University Grad Student

Li, Charlene.  Bernoff, Josh. (2008) Groundswell. Boston: Harvard Business Press. (pg 9).