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National SME Strategy: Image and Awareness Program

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Where did the SME Initiative Come from?

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Background and Research

Credit unions will be the preferred provider of services to small and medium sized enterprises in Canada.

Vision

:Facts:

• The CFIB ranks credit unions #1 in terms of overall service and confirms that we have strong positions in areas that businesses value such as local focus, reasonable access to credit, and convenient locations

• Our market share is second only to the Royal Bank

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Building on our Strengths

• Moving from our strong position to being the preferred choice

• We need to work together to expand upon our individual efforts and build our competitive advantage

• Business-oriented relationships are at least three times more profitable than a retail-oriented relationships

• We can leverage experience and creates awareness of the benefits of being served by a local credit union

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Credit Unions are #1

2001 CFIB Research 2003

1 Credit Unions 1

2 HSBC 2

4* ATB 3

4* TD Canada Trust 4*

7 Scotiabank 4*

8* Bank of Montreal 6

8* Royal Bank 7*

6 CIBC 7*

10* Desjardins 9

10* National 10

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CFIB Research

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Ipsos Research Highlights

• 4 out of 10 SMEs think of credit unions as being a financial institution; however, only 17% feel informed about them

• Most SMEs (76%) use a bank as their primary FI, 16% of all SMEs use a credit union as their primary FI

• Core (must have) products for SMEs are current accounts, internet banking, ATMs and operating lines of credit

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Ipsos Research Highlights (continued)

• SMEs express a high degree of satisfaction with their primary FI. Credit union users are more satisfied than bank users

• Credit unions had a high retention rate – higher than those who use banks

• Dual users are slightly less positive

• Only 19% of SMEs think that the statement “credit unions are the preferred choice for SMEs in Canada” is believable

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Ipsos Research Highlights (continued)

• SMEs doe not believe there is a clear differentiation between credit unions and banks

• Credit union drivers are:

– Delivers as promised

– Flexible policies

– Makes banking easy

– Complete range of products and services

– Responsive service

– Accessible

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Scalable Communications

National Communications Umbrella

Regional Communications Programs

Solid National Campaign (Umbrella) with Regional Tailoring

Local Credit Union Tie-In MaterialCredit unions can order tie-in material from the National Program

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Program Overview

Aware Familiar Consider Try Satisfy Repeat

and Refer

National Opportunity

Regional Opportunity

Local Opportunity

Awareness Campaign/Communications Strategy

Tools and Development to Assist Credit Unions

National Economiesand Collaboration

Regional Variations

Optional Implementation

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TV Spots from last national campaign

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Value Proposition

Canada's Credit Unions

- will give Canadian business owners access to a collaborative network of commercial banking professionals ......

- to offer more responsive, flexible services across a complete range of financial products and innovative ideas that are tailored to owner needs and geared to mutual success.

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Objectives:• Primary Creative Objectives:

• Increase awareness/familiarity of credit unions amongst Canadian business owners – We are business smart – we get it– We offer small business services and products– We understand business owner needs

• Engage commercial members/prospectus in a new conversation that positions credit unions as business smart and worthy of consideration

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Targets

• Audiences include:

• Credit union employees

• Credit union business members

• Canadian business owners

• Canadian business media

• Influencers (accountants, lawyers, etc.)

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Communications Strategy• Create and deploy a national marketing

communications program– use an integrated communications and

advertising program – create an internal web platform to connect

credit union business banking experts – create an external web platform to build a

credit union business owner network– position credit unions as business smart,

savvy and capable.

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Communications Tactics

Advertising

Magazine, Television and Banner (internet)

Web Mini Sites (connected to banners)

Promotion

Sell Sheet (employees)

E-Blast (employees, members and promos)

Public Relations

Shop a summary of the research

Credit union positioning (business smart)

Cooperative

National creative components

Merchandising and brochures

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Creative Vision

• Use emotive, empathetic “hooks”

• Position us a more responsive, better aligned with small business.

• Leverage interest in those hooks to attract business owners to the deeper, web-based value-proposition.

• Be genuine. Demonstrate that we “get” the audience

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Creative Vision (continued)

• As a business owner, it is the network of people that you develop over time that helps you get ahead.

• Our personal approach makes business banking @ Canada’s credit unions better.

• “experts” have more influence over the that impact “you” and your business.

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Creative Principles

• Focus message on the audience

• Employ breakthrough empathetic emotion

• Bank bash

• Position credit unions or members in a negative light

• Employ negative humour

• Position credit unions as overly aggressive

Do

Not

Do

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Principle Support Tactics

• Complement provincial campaigns where possible and leave neutral where objectives do not align.

• Recognize that nationally we are building SME service awareness, recognize the impact that this has in those jurisdictions that are building full spectrum brands.

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Business Owner “Hooks”

Our campaign leverages these well-known and documented obstacles: campaign leverages these well-known & documented obstacles.• Red tape

• Inflexibility/adaptability

• Impersonal relationships

• Changing personnel

• Respect

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External Media Summary

Globe and Mail Report on Small Business

Spring 07Global PGA Leader Board Jan – Oct 07CTV Sunday Night News Jan – May 07TV Commercials Feb – May 07Magazine Advertising Feb – May 07Internet Jan – May 07

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TV Ads

TV Ad # 1 TV Ad # 2

TV Ad # 3 TV Ad # 4

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•Sme spots show here

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Ad Tracking

• Baseline research – last week of January

• Interim results – last week of February

• Post results – first week of May

Timing:

Metrics:• Recall – the ad must win viewers’ attention to

get noticed and the brand must “get credit”

• Response – the ad needs to trigger a rational and/or emotional consumer response to the brand

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Results to Date

• Budget only permitted light GRP weight levels

• The goal at this point is to see positive movement in the recall metrics and response metrics

• Hard targets will be established at the next committee meeting

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Results to Date

• Recall

– Metrics have been stable

– Diagnostics show ads have potential and there are no red flags

– Two hinderances:

• Brand linkage

• Low media weights

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Results to Date

• Response

– Aided consideration is trending up

– Specific image ratings for credit unions have become more positive

– Gains in Ontario and Atlantic markets

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Ipsos Conclusions• Implications of findings from this wave of

research are:

1. Potential for a national campaign to change perceptions of, and in turn, increase interest in credit unions

2. Continuing with the current creative strategy and platform is key

3. Fine-tuning creative to strengthen brand link is a priority,

4. Increased media budgets may be required to ensure optimal reach, and in turn, stronger shifts in perceptions.

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Results to Date

• www.bizwyk.com

– 1,535 visits, average 8.6 pages per visit

– 1,287 managers, 483 multiple visits.

• www.canadascreditunions.com

– 15,697 visits, average 4.6pages per visit

– 15,210 visitors, 1171 return visits.

• Anecdotal evidence of referrals and inquiries arriving at credit unions across the country.

• Media drivers are print, followed by television.

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Results to Date• Canadascreditunions.com searches (2 months)

• Visitors have searched for key contacts 1290 times.     (Average of 643/month.)

BC: 275 NB: 42

AB: 184 NS: 71

SK: 156 PEI: 35

MB: 81 NL: 31

ON: 415

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Closing Comments

• We are 3 months weeks or so into a three-year image and awareness program.

• System engagement is strong.

• Web traffic is exceeding our expectations.

• All participating provinces have provided their year-two funding commitment. One province is not participating in the media components.

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Questions??

Gene Creelman

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Chairperson

Image & Awareness Sub Committee of the

National SME Initiative

- - - - -Vice President, Marketing and CommunicationsInterior Saviongs Credit UnionT: 250-869-8243gcreelman@interiorsavings.com