A credit union had been operating for several years and had enjoyed modest membership levels and financial growth. Competitive forces in the financial services industry, however, were making business increasingly difficult - despite the credit union’s highly energized “not for profit but for service” commitment to their members. Banks in their community were enjoying a low-cost operating advantage. The credit union wished to continue providing their community-focused financial services alternative, but their fiscal budgeting was simply up against increasing difficult odds. How could they compete?

They began an organized intelligence effort, with the assistance of a trained third party, to better understand local market forces and identify a competitive strategy. Intelligence staff were hired. Project parameters were defined. What were the current and future marketing strategies of their competitors? How did the community feel about the financial services provided in their community? What did the community want in a financial institution? What were the strengths and weaknesses of the credit union and of each of their local competitors? What strategic information could be determined about the broad business environment of the local and/or regional community? What could the credit union do to increase its’ strength within the community?

An intelligence database was developed to bring together answers to the above questions. The intelligence department began gathering data. They met with each of their operational departments to gather external data that was available from internal sources. They learned from the part-time marketing department that a business journalist from the community newspaper published quarterly interviews with local banking executives. That journalist and her published articles would likely provide useful insight into local banking strategies. Searching back issues of the newspaper might also provide hiring data about local banks, which, in turn, could provide information about existing or – more importantly - potential banking services and provide inferential information about the internal workings of the banks that had hired. Certain other credit union staff who handle regulatory reporting provided the intelligence department with sources for monitoring federally required banking data about their competitors. Knowing that certain government reporting could be useful, they sought publicly accessible information that can be insightful when using inferential referencing techniques - information that is not publicly reported anywhere else. Further, other credit union staff were aware of additional public appearances made by local bankers. SEC filings of several competitors (publicly-owned banks) were downloaded from the Internet. The intelligence staff began researching all of this information while implementing the other components of their information strategy. The credit union did member satisfaction surveys of their existing membership and they undertook a telephone survey that helped them gauge community opinion about local financial services. Industry, marketing, and forecasting reports were purchased from both credit union AND banking associations. The intelligence department obtained transcripts of national business interviews done with national executives of banks that had local branches. Promotional brochures were picked up from local banks and their websites were reviewed to learn about their banking and marketing strategies. The county’s present demographic data and five-year forecasts were obtained from the census bureau.

All the information collected above was compiled into the credit union’s intelligence database and thoroughly analyzed. Certain levels of present financial data, financial forecasting, current product offerings, and possible changes in marketing strategies were determined about competitors. The credit union analyzed the strengths and weaknesses of both their competitors and their own institution. Public perceptions were collated on several related topics. Expected changes in local demographic trends were scrutinized to supplement the other data (possible changes in size and incomes of the local population).

The outcome of all this research? Although banks were growing in economic clout, the credit union identified a growing public dissatisfaction with perceived decreasing value of banking services and increasing banking fees. The credit unions’ own members, on the other hand, were comparatively satisfied with the individual attention they received and with their comparatively broad, affordable access to financial services. The credit union, then, was able to identify potential new membership segments (demographic groups that they could add to their membership base), temporarily hire a marketing staff, and implement a successful membership drive. The credit union not only made the public aware of their unique financial services philosophy, they informed the disgruntled public that there was a banking alternative available that would meet their financial needs. While the credit union did not wish to become a marketing machine, they were able to survive in the changing economy by successfully increasing their membership base. They were better able to capitalize upon the economies of scale employed by their banking cousins in the financial services industry.

adapted from ©Competitive Intelligence Workbook