The Value of Values-Based Marketing
Putting your values first to connect with people in an emotional and meaningful way
By Cassie Woolhiser, Project Manager
Most financial institutions have a set of core values documented somewhere in their organizational archives. Many even reference them regularly—including them in job postings, reciting them during annual meetings, or enshrining them in large (branded!) font on a prominent wall. But how do we make these a truly vital and integrated part of our brand? And, how should they influence the way we interact with our members and our communities?
Putting your values front and center in your marketing builds trust, increases member loyalty, enhances brand affinity and deepens relationships with increased product and service usage. My experience working with organizations with a sustainable business approach, has taught me that marketing these values is critical in order to connect with people in more emotional and meaningful ways—this is where deeply held beliefs (our values) intersect with members. For credit unions, which are built on values, there has never been a more important time to market your institution as one that cares about people and community more than profits.
A study by the Global Alliance for Banking on Values compared the financial performance of 28 “global systemically important financial institutions,” also known as the “too-big-to-fail” banks, with 22 sustainable (people over profit and sustainable development) banks for a 10-year period between 2002 and 2011. Sustainable banks outperformed the too-big-to-fail banks across many measures that matter in banking: more exposure to members in deposits and loans, better quality and higher capital, better returns on assets, and significantly higher levels of growth. These types of financial institutions were also more resilient and stable. Marketing your institution as a value-led institution can garner immediate attention, build distinction and foster long-term loyalty and stability.
Values-based or cause marketing is a brand’s commitment to a specific cause or to values based ethics reflected deeply in their company. This can mean demonstrating your commitment to sustainability, reminding members that you are founded on community values of helping one another succeed, and that you will continue to do so, especially in a crisis.
““Values-based or cause marketing is a brand’s commitment to a specific cause or to values based ethics reflected deeply in their company.””
Like thank you cards and collectible art, values-based marketing is most effective when it’s genuine. It makes it believable, both internally for your employees and externally for your customers and members. The age of information makes it a lot easier to call BS on business practices that are just for show.
In addition to being genuine, your cause of choice should reflect your brand and values. If you’re a credit union, partnering with an organization that helps underserved populations with Small Business Loans or teaches students at a local agriculture college about farm loans and finance are a better fit for values-based marketing than, say, teaming up with an athletic wear company just because you like their product. That said, creativity is key; if you find an interesting way to promote your cause by thinking outside of the usual box, people will pay attention.
Some of the best ways to advertise your cause marketing are through collaboration with a non-profit and through cooperative sharing on social media. As with most campaigns, multiple media channels are the best approach to maximizing effectiveness, but for cause marketing, social media can be really beneficial. It allows for conversation with members and customers, and breaks down some of the formality that can build up across other channels.
Here are some of my personal favorite cause marketing examples:
American Eagle spends a great deal of money on consumer research, and has even hired teenagers for their executive office to keep the culture as realistic as possible for their core audience. They have partnered with anti-gun rallies to prevent school shooting violence, with civil liberties groups and LGBTQ youth to promote inclusivity socially and in advertising. AE has tapped into using real customers found on Instagram in their campaigns instead of photo-shopped images of models, called AE X Me. Have these campaigns sparked controversy? Yes. On social media in particular, AE dealt with ugly comments from users who disagreed with their progressive leanings—but their core customer base supported the moves, and the campaigns have been profitable for the company.
The Economist’s event Pride and Prejudice: Keeping pace with change event is another great example of cause marketing. I love this example because it’s tied to finance, and because it modernized a classic dilemma. Pride & Prejudice focused on the business case for LGBT diversity and inclusion. At one conference, in one day, in three global cities (Hong Kong, London, New York), leaders in business, politics, and society publicly discussed the business case for LGBT inclusion and diversity. The Economist simultaneously ran a large social media campaign to increase online conversation beyond the 24-hour event. This event changed many individuals’ perceptions of the Economist from a magazine about the economy to a brand about viewing economic development through a youthful and informed lens.
Strum has helped many credit unions with transformational rebranding with purpose driven components in their new brands. For example, one of Pen Air Federal Credit Union’s values is a coined word “Communerosity.” It’s a coined word from community and generosity and has become recognizable in Pensacola, the CU’s headquarters. Introduced as an idea at Brand Camp, the spirit of Communerosity started that day with staff working together to assemble 50 children’s bikes and gifting them to children at the local Boys and Girls Club, but it didn’t end there. Employees nominate and vote for local nonprofits to receive prizes each year, and are encouraged to volunteer up to 5 hours per month during paid company time. Since launching the brand with staff in 2016, Pen Air has seen staff volunteerism increase by almost 200% in 2019, and their Net Promoter Score went up by 2.25 points.
People’s lives have been shaken by the Covid-19 pandemic and the world will be permanently altered in ways we can’t see yet. And while essential businesses are on the front lines of health, food, and sanitation, credit unions have the opportunity to live by their values and do what they already do so well: help their members financially through these difficult times. By supporting a cause that’s meaningful to your brand, values and beliefs, your members and customers will thank you now and will reward you with their loyalty well into the future.