ISBN 978-1-932795-64-6
PO Box 2998
Madison, WI 53701-2998
Phone (608) 231-8550
www.filene.org
PUBLICATION #185 (5/09)
ISBN 978-1-932795-64-6
The Mind of Low- to Moderate-Income Savers
ideas grow here
Does Imagery Matter:
Delving into the Mind of
Low- to Moderate-Income Savers
Nick Maynard
D2D Fund, Inc.
Jeff Zinsmeyer
D2D Fund, Inc.
Tim Flacke
D2D Fund, Inc.
Does Imagery Matter:
Delving into the Mind of
Low- to Moderate-Income
Savers
Nick Maynard
D2D Fund, Inc.
Jeff Zinsmeyer
D2D Fund, Inc.
Tim Flacke
D2D Fund, Inc.
Copyright © 2009 by Filene Research Institute. All rights reserved.
ISBN 978-1-932795-64-6
Printed in U.S.A.
Filene Research Institute
Deeply embedded in the credit union tradition is an ongoing
search for better ways to understand and serve credit union
members. Open inquiry, the free flow of ideas, and debate are
essential parts of the true democratic process.
The Filene Research Institute is a 501(c)(3) not-for-profit
research organization dedicated to scientific and thoughtful
analysis about issues affecting the future of consumer finance.
Through independent research and innovation programs the
Institute examines issues vital to the future of credit unions.
Ideas grow through thoughtful and scientific analysis of toppriority consumer, public policy, and credit union competitive
issues. Researchers are given considerable latitude in their
exploration and studies of these high-priority issues.
Progress is the constant
replacing of the best there
is with something still better!
— Edward A. Filene
The Institute is governed by an Administrative Board made
up of the credit union industry’s top leaders. Research topics
and priorities are set by the Research Council, a select group
of credit union CEOs, and the Filene Research Fellows, a blue
ribbon panel of academic experts. Innovation programs are
developed in part by Filene i3, an assembly of credit union
executives screened for entrepreneurial competencies.
The name of the Institute honors Edward A. Filene, the “father
of the U.S. credit union movement.” Filene was an innovative leader who relied on insightful research and analysis when
encouraging credit union development.
Since its founding in 1989, the Institute has worked with over
one hundred academic institutions and published hundreds of
research studies. The entire research library is available online
at www.filene.org.
iii
Acknowledgments
This project would not have been possible without our participating credit unions, specifically Jeff Carpenter, Tracy Fors, and Doug
Fecher of Wright-Patt Credit Union, and Sue Yoder, Jennifer Flexer,
and Mark Spenny of CEFCU. At Mission SF Federal Credit Union,
Ivan Barriga showed amazing initiative in making a small test happen. In addition, D2D Fund is grateful to Third Degree and MaringWeissman. D2D Fund would also like to thank George Hofheimer
and the Filene Research Institute for their valuable input, and the
National Credit Union Foundation, particularly Steve Delfin and
Lois Kitsch. We are indebted to Maya Bourdeau and Zdenka Strum
for their tireless volunteer efforts, and we would like to recognize the
work of Kara Adamon and Jiao Zhang.
We would also like to recognize the credit unions that participated in
this project:
• Affinity
• Affinity Plus
• Baxter CU
• BECU
• BestSource
• Bethpage
• CEFCU
• Centra
• Desert Schools
• Digital FCU
• FORUM
• Goldenwest
• Langley FCU
• LGFCU
• NC State Employees CU
• Orange County Teachers FCU
• Patelco
• Provident CU
• PSECU
• Veridian
• Virginia Credit Union
• Wright-Patt
v
Additional thanks to credit union marketing executives who granted
D2D interviews:
• Leigh Brady (NC State Employees CU)
• Jean Holman (Virginia Credit Union)
• Nan Morrow (Centra)
• Heidi Parks (Provident CU)
• Susan Siegel (SunMark CU)
• Diana Windley (Goldenwest)
• Debbie Wege (BECU)
Finally, this report wouldn’t have been possible without a grant from
the National Credit Union Foundation.
vi
Table of Contents
Executive Summary and Commentary
About the Authors
Chapter 1
Introduction
1
Chapter 2
Phase One: Review of Credit Union Imagery
5
Chapter 3
Phase Two: Consumers’ Thoughts and
Feelings about Money
11
Chapter 4
Phase Three: Field Testing
21
Chapter 5
What Did We Learn?
37
Endnotes
46
ix
xiii
vii
Executive Summary and Commentary
By George A. Hofheimer,
Chief Research Officer
The credit union system and D2D Fund share a common interest: better understanding the mind-set of low- to moderate-income
(LMI) consumers regarding personal finances and financial services.
For credit unions, attracting LMI customers is important to their
mission of “meeting the credit and savings needs of consumers,
especially persons of modest means” and an important part of what
distinguishes them from other depository institutions. As a nonprofit
organization devoted to helping low-income families address their
financial service needs—especially the need for saving opportunities—D2D knows it must understand these consumers’ thoughts,
feelings, and attitudes about personal finance in order to serve them
effectively.
Given the current economic environment, LMI families, like most
families, are finding it increasingly difficult to save money. For
many, day-to-day needs like housing, food, and commuting to work
consume the vast majority of their incomes. The threat of financial crisis—brought on by a job loss, an illness, or an essential car
repair—hangs over them and colors their daily financial choices. A
lack of savings undermines their efforts to build a more promising
future for themselves.
This reality raises important questions relevant to the credit union
system:
• How can LMI families be encouraged to save? Depository institutions have a key role to play, as both a provider of savings products and a source for personal finance information. Credit unions
are distinct from other depository institutions since a core part of
their mission is to serve the savings and credit needs of persons of
modest means.
• How might credit unions best reach potential LMI savers? As the
primary means by which institutions reach out to customers,
marketing is almost certainly part of the answer—not only the
amount of marketing conducted, but the degree to which it is
tailored to this market segment.
In this study, D2D explores LMI consumers’ receptivity to savings
products by innovating around the market function. The research
team utilizes the Zaltman Metaphor Elicitation Technique (ZMET),
an innovative research methodology that elicits insights about
human decision making through metaphors and storytelling. Using a
sophisticated interview technique, researchers encourage consumers
to create stories and identify images about their feelings related to a
topic of study. From these stories emerge metaphors, messages, and
imagery that professional marketers use to build brands and products
ix
(e.g., “Chevy, Like a Rock”). This research study uses ZMET to
better understand how LMI consumers approach (1) money and savings, and (2) their children’s financial futures.1
The researchers conducted two consumer-focused studies utilizing
ZMET, interviewing 41 LMI consumers. Their goal was to better
understand the attitudes of LMI households toward money and savings. First, D2D examined perceptual differences between male and
female participants as well as parents and non-parents. Next, they
studied the perceptions of female parents. D2D found that money
impacts all aspects of study participants’ lives, including their identities, finances, and social networks. In short, researchers discovered
that money, like water, is a powerful and essential resource, but it can
also be an extremely destructive force for LMI families. Money is an
emotionally complex topic for LMI consumers.
During the summer and fall of 2007, D2D reviewed existing
promotional practices of credit unions in order to generate insights
about how savings campaigns and advertising collateral are currently
developed for LMI households. D2D collected marketing materials from 22 credit unions across the United States and Canada in an
effort to develop a snapshot of the industry in terms of imagery and
messaging. Many of the metaphors used by credit unions evoked
limited emotional connections that pointed to an opportunity to test
the messages developed during the ZMET research.
Beginning in the early spring of 2008, D2D began recruiting credit
unions to pilot marketing materials and messaging leveraging the
ZMET research. Wright-Patt Credit Union in Dayton, Ohio, and
CEFCU in Peoria, Illinois, agreed to pursue pilot tests. In addition,
a small community development credit union, Mission SF Federal
Credit Union of San Francisco, California, undertook an ad hoc
test. After evaluating these credit unions’ materials and results, the
researchers found the following:
• While risky, choosing more emotionally provocative images could
connect more successfully with LMI consumers.
• ZMET-influenced marketing can be implemented on different
scales, from small to substantial.
• ZMET-based imagery and messaging may be most effective when
targeted at specific segments within the LMI market (e.g., single
moms).
• Credit unions should consider the value of community outreach
as a complement to new marketing images and messages.
x
Consumers encounter hundreds of marketing messages in a given
day. This study recognizes that consumers use conscious and subconscious feelings to assess the effectiveness of these messages. ZMET
may prove to be a useful tool for marketing professionals to tap into
consumers’ subconscious thoughts with compelling messages and
metaphors. The results may be more members, more savings, and a
more emotionally attuned membership base.
xi
About the Authors
Nick Maynard
Nick Maynard is the director of innovation and new product development at D2D Fund in Roxbury, Massachusetts. Nick has almost
a decade of experience providing operational, customer, and marketing strategy consulting to Fortune 1000 executives while at Deloitte
Consulting and Braxton Associates. Since joining D2D, Nick has
worked on applying the Zaltman Metaphor Elicitation Technique
(ZMET) to savings in LMI households, launching prize-based savings in the credit union system, offering U.S. Savings Bonds at tax
time, and leading the financial education video game initiative. He
holds an MBA from Harvard Business School and an MPP from
Harvard University’s Kennedy School of Government. He also holds
a BSE in operations research from Princeton University.
Jeff Zinsmeyer
Jeff Zinsmeyer is former executive director of D2D Fund and served
on its board of directors until March 2009. Jeff has more than 27
years of experience in community development and the financial
services industry. Prior to helping launch D2D Fund, he served
as the director of Community Development and Low/Moderate
Income Marketing for FleetBoston Financial’s Community Investment Group. Prior to Fleet’s purchase of BankBoston, Jeff helped
develop and launch BankBoston’s First Community Bank, where he
supervised small business and real estate lending. First Community
Bank is a nationally recognized urban bank that serves numerous
low- and moderate-income communities throughout New England.
Before working with First Community Bank, Jeff was a vice president of acquisition finance. Jeff has an MBA in finance from Columbia University, an MA in economics from American University, and a
BA from the University of Southern California.
Timothy Flacke
Timothy Flacke is executive director of D2D Fund and serves on its
board of directors. Prior to helping launch D2D, Tim worked as an
independent consultant, author, and grant writer in the field of asset
development. In this capacity he coauthored The Individual Development Account Program Design Handbook, successful grant applications
under the federal Assets for Independence Act (AFIA) program, and
Dollar $ense, a financial education curriculum for the Individual
Development Account (IDA) programs. Tim was a VISTA volunteer
at Central Vermont Community Action Council during the start-up
phase of its American Dream Demonstration IDA program, Tangible
Assets. Before entering the asset development field, Tim managed
xiii
employee benefits, risk management, and stock option plans for
Filene’s Basement, Inc., a chain of off-price apparel retail stores with
5,000 employees in 13 states. He holds a master’s in public policy
from the Kennedy School of Government at Harvard University and
a bachelor of arts in philosophy from Boston College.
D2D Fund, Inc. (www.d2dfund.org) is a nonprofit organization that
expands access to financial services, especially asset-building opportunities, for low-income families by creating, testing, and deploying innovative financial products and services. D2D works with
the financial services industry, public policy organizations, national
nonprofit groups, and grassroots community agencies to generate
promising ideas, pilot test systems and programs, build awareness of
the needs and potential of low-income communities, and advocate
progressive social and economic policy.
xiv
Chapter 1
Introduction
ZMET applies lessons from psychotherapy, cognitive neuroscience, psychology, and sociology
to discern consumers’ unconscious feelings about
products, brands, institutions, and the concepts
on which products are based.
With the help of the innovative Zaltman Metaphor Elicitation Technique (ZMET), D2D Fund is probing the deepest, most intimate,
and least well-articulated feelings of low- to moderate-income (LMI)
consumers regarding money, saving, and financial services. Insights
from this research will inform the development of new marketing
tools, including collateral, aimed at increasing saving among LMI
consumers.
ZMET applies lessons from psychotherapy, cognitive neuroscience,
psychology, and sociology to discern consumers’ unconscious feelings
about products, brands, institutions, and the concepts on which
products are based. The technique recognizes that 95% of human
decision making and thinking occurs in the unconscious mind. With
traditional consumer research tools like surveys and focus groups,
most people are unable to articulate what genuinely motivates their
behavior—what lies beyond or beneath rational thought. Equally
important, human beings are primarily visual and nonverbal communicators, meaning consumer marketing is most effective when it
is framed in the images and symbols that resonate deeply and cue
customer action.
The technique recognizes that 95% of human decision making and thinking occurs in the unconscious mind. With traditional consumer research tools like surveys and focus groups, most people
are unable to articulate what genuinely motivates their behavior—what lies beyond or beneath
rational thought.
To understand these cues, specially trained ZMET interviewers
probe—but never prompt—for fundamental, often unexamined,
and unconscious feelings and beliefs that drive consumers’ actions.
Interviewees are asked to prepare for their sessions by clipping
pictures that speak to them about the topic of the ZMET study
in which they are involved. Using these clipped images as a guide,
2
Figure 1: Example Digital Image
ZMET interviewers help consumers articulate the
implicit metaphors and archetypal images underlying their thoughts and actions in relation to the
study’s topic. ZMET interviews often culminate
in the consumer-directed creation of a new digital
image collage (Figure 1), which combines the
images chosen by the interviewee in order to tell a
meaningful story about a product, brand, institution, or concept.
Source: Children’s Financial Security Study.
3
Chapter 2
Phase One: Review of
Credit Union Imagery
In our sample of promotional material, we
find that imagery and messaging largely concentrate on two basic concepts: utilitarian and
aspirations/attainment.
Using the ZMET methodology as a guide, D2D completed an initial
review of credit union imagery and messaging related to savings
account promotions in 2007. To create a sample of materials for
review, we contacted credit unions and requested examples of savings
product collateral. We developed an initial list of target credit unions
using three criteria:
• Asset size greater than $250 million (M).
• Membership greater than 100,000.
• Relationship with the Filene Research Institute.
Our final sample includes 107 images from 22 credit unions.2 Many
of these 22 credit unions are part of the Filene Research Council.
Upon receipt of materials, we inventoried and categorized them
according to savings-related products; these included, but were
not limited to, savings accounts, IRAs, CDs, and money market
accounts. We did not include materials related to non-savings products such as checking accounts, mortgages, and home equity loans.
There are a number of caveats regarding the survey of credit union
savings materials. Most importantly, this sample should not necessarily be considered representative or scientific. D2D was limited to
those credit unions willing to respond to our request as well as those
that met the criteria presented above. Our study was conducted in
the summer; to the extent that materials are seasonal, we may have
oversampled from collateral tied to reaching customers during the
warmer months. For example, heavy use of beaches and other warm
or sunny environments could reflect this seasonality.
From our sample we were able to develop a qualitative framework,
the Emotional Continuum, which informed our thinking about the
imagery and messaging prevalent in the industry.3 Figure 2 lays out
high-level aspects of the Emotional Continuum, which includes four
categories for imagery and messaging with two dominant metaphorical paradigms: utilitarian and aspirations/attainment.
6
Figure 2: Emotional Continuum Framework
Customer
emotional
involvement
Metaphors
Subcategories
Estimated %
of ads
Low
Utilitarian
Growth
Compound
interest
Planted money
30%
Bills, coins,
piggybanks,
people working
at computers
13%
Plants, watering,
seedlings,
acorns, trees
17%
Sporting events,
galoshes
40%
Shiny, happy
people, proud
graduates, close
families
Abstract
Games, journey,
protection
Images
Short-term
satisfaction
Education
Aspirations/­
attainment
Calm, cool,
control
Physical
closeness
High
Retirement
Utilitarian imagery and messaging (Figure 3) is a sizable category
that includes images of money and coins, as well as individuals seemingly being more productive by being members of a credit union.
This positions the credit union
as a tool that a member can use
to build savings and wealth.
Utilitarian marketing evokes less customer emotion, as it is
At the same time, utilitarian
rational, functional, and straightforward.
marketing evokes less customer emotion, as it is rational,
functional, and straightforward. Perhaps the most metaphoric image
noted in this thematic area is the piggy bank, but even with this
potentially symbolic image, emotional connections are no deeper
than feelings associated with a credit union as a place to deposit
members’ money.
The next step toward higher emotional engagement is growth imagery and messaging (Figure 4). Growth imagery and messaging transform money into something
organic. Of course, a traditional
financial services strategy is
Credit unions use growth images and messages to convey the
to emphasize account growth
benefits of their savings products in more than functional
through compound interest,
terms; savings products are depicted as alive.
and many ads explicitly tie compound interest rates to growth
images. Beyond this, credit unions use growth images and messages
7
Figure 3: Examples of the Utilitarian Category
Sources: Langley, CEFCU.
to convey the benefits of their savings products in
more than functional terms; savings products are
depicted as alive. In metaphorical terms, the credit
union becomes a gardener or farmer helping to
make money grow, with products represented
as the soil or pot in which money can be firmly
planted. A number of promotional materials in
our sample illustrate dollar bills literally being
planted in the ground.
Figure 4: Example of the Growth Category
Beyond growth metaphors, we encountered a
range of themes related to games or competitions,
Source: Affinity Plus.
journeys, and protection (Figure 5). The games/
competition category includes materials that
reflect competition among financial institutions (e.g., “My rates can
beat your rates”), simple plays on words (e.g., “5.50% APY for a
sweet-sixteen months”—a reference to the NCAA basketball finals),
or the “game of life.” With messages like “Climb the steps to your
financial future” and images of boat steering wheels, such materials
evoke emotions associated with direction and journeys. Although
limited, protection images such as castles and galoshes elicit emotions of safety and security.
Finally, the largest category in the Emotional Continuum framework,
aspirations/attainment, focuses on the achievement of a variety of
goals (Figure 6). One thread of this category focuses on short-term
8
Figure 5: Example of the Protection Category
Source: BCU.
consumption goals, like saving for holidays or
summer vacations. Another theme is saving for
education and the accomplishments associated
with graduating from college. A third substantial
subcategory concerns people who have achieved
calm and control through knowledge and empowerment, as well as those who have a worry-free
coolness around finances. A specific area of “worryfree” marketing focuses on retirement, depicting
later life supported by adequate savings as the
ultimate carefree aspiration. Finally, this category
includes images of physical closeness between family members through hugging and cuddling, an
emotional and social goal for many consumers.
As noted, in our sample of promotional material, we find that imagery and messaging largely
concentrate on two basic concepts: utilitarian and
aspirations/attainment. As Figure 2 reports, around 30% of promotional material falls into the utilitarian category, while an estimated
40% can be labeled as expressing aspirations. Clearly, the sample
distribution is skewed toward these opposite ends of the Emotional
Continuum framework, with only one additional metaphoric theme,
growth, having been mined by the industry in any meaningful way.
Figure 6: Examples of the Aspirations/Attainment Category
Sources: Patelco, LGFCU.
9
Chapter 3
Phase Two: Consumers’ Thoughts
and Feelings about Money
ZMET study participants assemble stories from
feelings and thoughts buried deep in their subconscious minds. In turn, researchers identify
patterns across a sample of participants in order
to identify metaphors with wide resonance.
As mentioned at the outset, ZMET expands marketers’ toolkits
beyond customer surveys and focus groups in order to probe the
95% of the human mind that drives decision making. D2D conducted two initial consumer-focused studies utilizing ZMET. Our
goal was to better understand the attitudes of LMI households
toward money and savings. Figure 7 summarizes the study topics,
sample sizes, and demographic composition.
ZMET study participants assemble stories from feelings and
thoughts buried deep in their subconscious minds. In turn, researchers identify patterns across a sample of participants in order to identify metaphors with wide resonance. Individual interviews culminate
in each participant developing his or her own digital image collage
that represents through pictures how the participant feels about a
research topic.
Both studies were dedicated to better understanding how participants think and feel about money and savings. Within that framework, each study concentrated on different broad demographic
Figure 7: Research Study Samples
Study one: Money and savings
• 27 one-on-one, 2-hour interviews
– 8 female parents
– 6 female non-parents
– 7 male parents
– 6 male non-parents
• Across the group
– Income level—15,000 to 35,000 USD
per year
– No full-time students
– 16 African Americans, 9 Caucasian
Americans, and 2 Other
– 6 under 35 years old, 12 35–50 year
olds, and 9 over 50 years old
Study two: Children’s financial future
• 14 one-on-one, 2-hour interviews
– 14 female parents, all with children
under the age of 18
– Income level—15,000 to 35,000 USD
per year
– No full-time students
– 3 African Americans, 7 Caucasian
Americans, 3 Latin Americans, and 1
Biracial
– Mostly between the ages of 23 and 35
(one woman was 39)
Note: Olson Zaltman Associates has concluded that there is compelling empirical evidence that eight conventional one-on-one,
one-hour interviews are as effective as eight focus groups involving 64 consumers. Ten to twelve minutes of average individual
“airtime” per focus group participant generally does not facilitate deep thinking; rather, it often produces multiple versions of an
idea but with little depth of insight. (From “The Voice of the Customer,” by Abbie Griffin and John R. Hauser, Marketing Science
Institute, 1992.)
12
characteristics that were posited to influence savings attitudes. The
size of study one allowed us to examine differences between male and
female participants as well as parents and non-parents. Study two
focused exclusively on female parents.
In study one, the sample included limited ethnic minority representation outside of African Americans. Because metaphoric truths
tend to cut across cultures and ethnicities, however, our findings may
apply to a variety of perspectives. Where insights appear to be influenced by the specifics of a given culture—around social networks, for
example—our findings may not fully apply to other ethnic or racial
groups.
The first study focused on gender and parental status differences:
• Study participants were asked to choose six to eight pictures that
described their thoughts and feelings about money and savings.
• During the interview, participants were asked to:
■■
■■
■■
Imagine a character—a person or institution—that they
would trust for advice about money. What type of person
would they imagine?
Imagine a character—again, a person or institution—that
they would not trust for advice about money. What type of
person would they imagine?
Consider which of these characters they would be more
likely to relate well to. With whom would they prefer to
spend time?
The second study concerned mothers and their relationship with
their children:
• Study participants were asked to choose six to eight pictures that
described their thoughts and feelings about their children’s financial needs for the future.
• During the interview, participants were asked to:
■■
■■
■■
Imagine a character or person who saves money. What type
of person would they imagine?
Imagine a character or person who does not save money.
What type of person would they imagine?
Consider which of these characters they would relate to
more easily. With whom would they prefer to spend time?
Study one found that money, like water, is both a resource and a
destructive force for LMI families. Images of boats in a calm inlet
13
Figure 8: LMI Parents Struggle to Meet Basic Needs
“I feel like this is me and my husband and my kids because I have
one boy and one girl. They’re all sitting around able to eat just at
the table. They’re having tacos, which is a simple meal, but they’re
able to sit down and eat. And I feel like in order for me to have this,
I need to have money to put food on the table. And that’s a struggle
every month.”
and waves crashing against rocks exemplify this idea. In the words of
one participant (describing an image):
This one has the ocean and the waves crashing against the rocks. That
could be like having a rough time with money and going haywire
with the money, and everything is just crashing forth, and there’s no
calmness in there. If you’re not careful with the money, everything
can start smashing everything. And then you’re lousy and you’re not
happy, and it messes up the whole situation. It actually can change a
personality.
For LMI families, there is no
relief from stress about money.
Money is a constant source of
anxiety and worry stemming
from concerns about how bills
will get paid or what will happen if the cash runs out.
Money, like water, is both a resource and a destructive force for
LMI families.
Given their income and financial reality, parents emphasize that they
have trouble providing basic necessities for their families. Interestingly, much of the imagery tied to this financial struggle is linked to
mealtime, suggesting difficulties in budgeting for food and providing
children a balanced diet.
D2D found that money impacts all aspects of study participants’
lives, including their (1) identities, (2) finances, and (3) social
networks. In terms of identity, LMI individuals describe how
money-related stress can change people’s personalities, making them
anxious, depressed, or desperate, and often bringing out their “dark
side.” With regard to finances,
LMI households struggle to
Men in particular report feeling invisible and unattractive
meet even basic needs. Beyond
without money.
physical survival, many study
14
participants complain that their lack of financial resources leads to
social isolation from loved ones and friends. In this way, finances
impact the social networks and interactions of LMI adults. Men in
particular report feeling invisible and unattractive without money.
Thoughts and Feelings about Savings
Study one also explored how LMI individuals think about savings.
Participants articulate a number of barriers to saving. First, the process of saving is not a lesson learned during childhood in many LMI
families. Many individuals have simply never saved money before.
Second, those heading LMI households are overwhelmed by life and
by living paycheck to paycheck. Their precarious financial situation
leads to a constant state of anxiety, clouding judgment and creating
powerful incentives to avoid facing financial problems or planning
for the future. Third, with
checkered and sometimes tragic
histories, participants are wary
Further complicating the task facing financial services marketof planning for an uncertain
ers is the success of retailers and consumer product marketers
and seemingly distant future.
in framing spending as a form of saving.
Long-term goals seem unattainable, rendering saving behavior
futile. Finally, atop all this sits a social stigma around saving; in
many low-income social networks, strong pressure exists to share any
resources and lend savings to those in need, especially family.
Further complicating the task facing financial services marketers is
the success of retailers and consumer product marketers in framing
spending as a form of saving. Billions of advertising and marketing
dollars have effectively persuaded many consumers that buying items
on sale is a shrewd form of saving. With a pervasive consumerist
culture, LMI consumers face omnipresent and tempting spending
options. Understanding the degree to which consumption undermines saving, several interviewees express feelings of guilt about their
personal spending behavior.
The study also explores the idea of trust, with participants being
asked to imagine characters they trust and do not trust when seeking
advice about money. In terms of distrust, the character most often
chosen by interviewees is a
financial institution or financial
services business. When asked
In terms of distrust, the character most often chosen by interfor images of untrustworthiness,
viewees is a financial institution or financial services business.
interviewees produce pictures
of snakes, hawks, vultures, and
wolves. Asked to describe characteristics of those they do not trust,
study participants cite people who talk too fast, use too much jargon,
15
overload them with information, and are motivated by a blatant selfinterest.
In terms of trust, credit unions may have a leg up on other financial
institutions. LMI consumers are more open to messages from people
or institutions that “get them”—their challenges, needs, and aspirations—and may be more apt to view nonprofit, membership-based
credit unions as in tune with their needs. Study participants report
trusting people they can relate to, people who “speak their language,”
and people who know where they are coming from. For male participants, trust is also bestowed on those who appear able to cope with
and manage the emotional fallout of their financial situations.
Despite a lack of resources, societal pressure, and distrust of financial
institutions, LMI participants nevertheless express a strong savings
aspiration. The object of participants’ aspirations is often a
short-term goal linked to spendFemale parents in the study are most likely to focus on savings
ing and consumption, such as a
and emphasize goals such as homeownership or providing an
car or a vacation.
education as a foundation for their children.
However, many women emphasize long-term investment goals.
Female parents in the study are most likely to focus on savings and
emphasize goals such as homeownership or providing an education as
a foundation for their children. In contrast, female participants without children emphasize saving for a new stage in life, such as marriage or having children. However, when discussing these goals, they
seem unable to elaborate with details, a plan of action, or a road map.
In terms of metaphors, participants compare saving money to nurturing life. Figure 9 illustrates the key metaphors discussed:
• Growing: “It builds on it. It’s like a ladder. If you do the right
things with your money, it will multiply.”
• Harvesting: “A picture of harvest time and reaping the rewards of
saving money.”
• Sacrificing: “It’s not going to be easy. You’ve got to get your hands
dirty.”
• Protecting: “So this is what I need to protect my money. Because
I don’t know how.”
Study one generates foundational insights into the LMI mind-set
regarding money and savings. In reviewing the findings from the
four segments in the study—female parents, male parents, women
without children, and men without children—female parents have
the most robust savings mental constructs. The research suggests that
parents, especially women, can be motivated to save for their children. The welfare of one’s children is an instinctive parental concern
16
Figure 9: Savings Metaphors
GROWING
HARVESTING
SACRIFICING
PROTECTING
rather than a voluntary, chosen goal. Young kids are a “clean slate”
where parents find their own dreams unhindered by past mistakes or
chronic present-day financial anxiety. Children, families, and education appear repeatedly in digital images created by study participants.
The study suggests that LMI mothers are most likely to respond to a marketing strategy that
emphasizes dreams, provided the dreams depicted are ones they care about and can visualize.
In light of these findings, D2D focused on female parents. Our
hypothesis was that marketing innovation might be most effective
if targeted at LMI female parents. We also recognized an emphasis
in the credit union system on aspiration marketing; this might be a
good match for female parents who, of all study participants, are the
most reality-based in terms of dreams and aspirations. Having children provides both motivation for modeling financial discipline and
a goal for saving money (to pay for future education expenses, child
rearing, etc.). The study suggests that LMI mothers are most likely
to respond to a marketing strategy that emphasizes dreams, provided
the dreams depicted are ones they care about and can visualize.
17
Thoughts and Feelings about
Children’s Financial Future
Study two concentrates on the thoughts and feelings LMI mothers
have about their children’s financial future. The digital images these
participants create reflect the overall themes and ideas expressed
throughout their interviews. Study participants imagine their children’s financial future as a transition from a dark, scary world to a
happier, brighter place. These mothers create digital images of happy
people, yet with predators lurking in the background.
LMI mothers view themselves as a resource for their children, and
many are anxious about their ability to provide both necessities and
other items to support their children’s growth. Mothers in study two
report feeling the greatest satisfaction when they feel they are providing for their children in key moments. They feel these moments
forge an emotional bond with their children and generate a “high”
that reenergizes them. Images shared by study participants include
many depictions of physical closeness between mother and child, as
well as among other family members. However, study participants
also feel anxious, concerned that time is moving too quickly and that
they might not be ready to provide at key moments in the future.
Mothers also express big hopes and dreams for their children, including that their children obtain a quality education, succeed at work,
create a stable, loving family, and one day own a home. Most importantly, study participants want their children to avoid feeling the
same anxiety and stress about finances that they feel. In the words of
one participant describing an image she created:
I hope for my kids and their financial future. I hope that they don’t
let nothing stop them. This explains that the sky is the limit, as far as
just go, you know, just reach for the sky. Like go as far as you can go,
Figure 10: LMI Mothers Planning for the Future
“It’s hard; it’s very hard being a single mom, but it’s not an option.
Like, I don’t have a choice. Some people may say that, you know,
it’s a choice. It’s not a choice. I don’t see the option of not being
there. I have to do everything by myself, from when they were
born until my oldest is going on 16. Like, the financial aspect is very
difficult—to take care of five kids and still save for education for the
future, pay bills and clothes and activities; it’s a lot. I go through
my ups and my downs, but I don’t let it get me down. I can’t get
depressed; I don’t have time.”
18
don’t stop. As much as you can get educated, to get educated; as far as
you can work yourself up at your job, just go for it. Like they’re floating on top of the world—just happy, excited. I made it, you know,
floating around in the clouds and the sky—it sounds corny.
While dreaming big dreams for their kids, study participants feel
emotionally and physically drained by their responsibilities. These
mothers feel lost and confused when planning for the future. They
see themselves alone on a path, trying to make decisions about where
to go. At the same time, study participants are practical and realistic,
knowing that they cannot lose hope or control. Ultimately, LMI
mothers keep going because they know they are responsible for their
children.
LMI mothers frame saving for their children’s future as a precarious
journey. They envision big hopes and dreams on the horizon, but
many of those hopes and dreams seem distant and unreachable. They
feel lost and do not know how to take the first step.
19
Chapter 4
Phase Three: Field Testing
The field testing served to engage credit union
marketing expertise to interpret the ZMET
research and develop a savings marketing campaign for LMI consumers. Additionally, the
researchers examined how credit union marketing experts engage in research, apply it, and
think through its implementation.
Beginning in the early spring of 2008, D2D Fund began recruiting
credit unions to undertake the first pilots of new marketing imagery
and messaging leveraging the ZMET research. D2D offered potential
partners the opportunity to be the first to try applying the ZMET
research studies to advance their marketing efforts targeting LMI
consumers. Credit union partners were asked to commit resources,
both financial and administrative, to allow for a robust study.
The project had two very important objectives:
• Test it out—Engage credit union marketing expertise to interpret
the ZMET research in order to develop a savings marketing campaign for LMI consumers.
• Learn from testing—Capture all that is learned from how credit
union marketing experts engage the research, apply it, and think
through its implementation.
The research design focused on capturing the best possible learning
without disrupting the overall marketing objectives or flow of our
partner credit unions. D2D set out to understand operational considerations and gather knowledge that would be beneficial to other
credit unions. The findings gathered through this study provide crucial insight around what has been learned from applying the ZMET
research in the real world to reach LMI consumers.
During 2008, Wright-Patt Credit Union (www.wpcu.coop) in Dayton, Ohio, and CEFCU (www.cefcu.com) in Peoria, Illinois, agreed
to pursue pilot tests. In addition, a small community development
credit union, Mission SF (www.mission.coop), located in the Mission District of San Francisco, undertook an ad hoc test. The structure and results of each of these pilots are discussed in detail below.
Wright-Patt Credit Union
Wright-Patt Credit Union (WPCU) has $1.4 billion (B) in assets and
serves 170,000 members. Located in Ohio’s Miami Valley and reaching communities in Cincinnati, WPCU has 22 member centers serving 7 counties and 1,200 SEGs. In 2007, 44% of WPCU members
22
were classified as LMI; these members had an annual income under
$40K and include retirees.
The 2008 annual marketing budget for WPCU was $1.147M, and
“serving LMI” was an articulated marketing goal that year. During 2008, WPCU was in the process of developing a new marketing program for the entire credit union. The advertising campaign
to support this plan focused on utilizing real members, including
testimonials; marketing channels included newspaper, radio, and TV.
In addition to the new branding campaign, WPCU also launched its
Savings Race in early August 2008; this initiative is a television-based
challenge between selected members to compete for a $10,000 prize
for saving money.
Along with a desire to innovate, WPCU has a significant history
working to serve LMI consumers—marked especially by the opening of an office in the Twin Towers neighborhood of Dayton, Ohio,
an area abandoned by all other financial institutions. In addition, to
assist LMI families, WPCU offers products such as Stretchpay, a payday lending alternative that is now the cornerstone of a nationwide
credit union service offering. In the third quarter of 2008, WPCU
provided members over 11,000 advances totaling over $4.2M.
In terms of savings options for members, WPCU has a variety of
products, many of which are outlined in Figure 12. WPCU has
marketed these products using messaging and imagery similar to that
found in the credit union assessment study. The ZMET research
offered some insight into how each of the product alternatives might
be received by LMI consumers. It became clear that each product
could be tweaked in some way to improve its impact on the target
audience.
But given the inherent complexities of altering products for a small
pilot test, WPCU took a different approach. The focus of the
marketing pilot shifted from products toward the credit union as a
whole; the implicit goal was to sell the credit union and let the product matching process occur at account opening. Thus, the guiding
question became, Can ZMET-inspired advertising engage LMI consumers around the idea of savings, with Wright-Patt Credit Union as
a resource to help people save?
The implications of this decision were significant. The project could
no longer simply focus on marketing materials and new creative. Jeff
Carpenter and Tracy Fors of WPCU added new project components
impacting member center operations, member center employee
training, and local community outreach to support the appeal to
members and potential members.
23
Metaphor Ideas
In June 2008, professionals from D2D
While many different images were gener-
Fund, the Filene Research Institute, and
ated, the following four reflect some of the
Olson Zaltman Associates led a pre-
best work of the group and the exploration
conference session at the CUNA Mutual
of four metaphors:
Discovery Conference. After a detailed
overview of ZMET and the D2D research
• Empathy: America is hurting.
studies on money and savings, small
• Protection: Life’s a battlefield.
groups spent time developing marketing
• Community: We are always there for
campaign ideas based on the ZMET concepts. The assignment was to choose an
you.
• Diversity: Saving for a colorful future.
image and metaphor that represent credit
unions for LMI consumers.
Figure 11: Images from CUNA Mutual Discovery Conference
24
Figure 12: WPCU Savings Product Examples
Savings product
Product details
ZMET insights
TrueSaver
Traditional share account
$5 to open
1–1.5% depending on balance
Straightforward and easy to understand
TrueSaver Promotion
7% on first $500
Includes “fine print”4
Number and complexity of requirements
potentially discouraging to LMI savers
EasySaver
Debit-card savings program
Requires checking account
Checking account required, excluding those on
ChexSystems5
Balance Builder certificates
Deposit $300 within 6 months
18-month maturity
Rate 1% below regular 18-month certificate
Better CD alternative for LMI saver, but high
required minimum and long-time horizon
Club accounts
$5 to open (for members)
Name your goal(s)
Set term of 3–12 months
Earn 1%
Straightforward and easy to understand; low
interest rate may not be meaningful
The Pilot Test
Wright-Patt Credit Union chose to pilot the ZMET research in three
Dayton, Ohio, member centers located in neighborhoods with a
significant proportion of LMI households. These member centers
had a combined field of membership of 20,500 individuals, with
12,500 thought to have household incomes less than $40,000. Many
of these households were also known to have children.
The creative generated for this campaign was a significant step in
marketing and advertising innovation to engage LMI consumers.
WPCU used Third Degree Advertising of Oklahoma City—its
advertising vendor—to generate the new campaign imagery and messaging. Beyond the normal credit union marketing processes, WPCU
and D2D reviewed the ZMET methodology and research with Third
Degree. In addition, both WPCU and D2D participated in the iterative process of reviewing images and messaging with an eye toward
representing the LMI point of view as presented in the research.
Our mission is to help people through life. We understand that there are a tremendous
amount of residents in the Miami Valley that can benefit from an organization that can
help them by simply providing them with the tools they need to succeed. In this case,
LMI earners are not getting ahead and are fearful of their future. We wanted to help
empower our members along with their family, friends and neighbors because it’s the
right thing to do.
— Jeff Carpenter, vice president of membership and development, WPCU
25
WPCU chose marketing executables that would strike a balance
between attempting to aggressively reach LMI consumers and avoiding channels that would not impact broader marketing efforts or
overwhelm the budget. Specifically, the campaign included:
• Small and large posters for display in the three member centers (Figure 13).
Figure 13: Member Center Poster
• Four direct mail pieces (Figures 14 and 15).
• Images for plasma TVs in two of the three member centers.
• A wall mural in a member center.
• Appointment cards (Figure 16).
WPCU decided to run a two-month test. The direct mail campaign began in mid-May with the hope of impacting month-end
government check deposits. Four mailings were planned for
members and non-members, and the direct mail campaign was
complete by July (Figure 14). Excluding staff time, WPCU estimates the total campaign cost $50,000, with postage ($24,388)
as the largest cost. The advertising agency cost $10,000, representative of an investment in the new marketing creative.
The direct mail pieces in Figure 15 reflect the imagery and
messaging innovation at WPCU. The images focus on family
closeness—something the ZMET research indicated is quite
important to female LMI parents. In addition, the messages
partnered with those images do not exceed six words; the goal
was something short and impactful. The address-side messaging
makes the point about saving and focuses on two areas reflective
of the research: (1) children’s futures and (2) being ready.
Assuming the direct mail marketing campaign reached its target,
was seen, and elicited the intended reaction, WPCU began
thinking about the customer experience. Since customers might need
to make appointments to open accounts, the wallet-sized appointment card with ZMET imagery and messaging was developed
(Figure 16). In addition, member center customer service scripts
were developed and refined to help prepare staff to effectively handle
increased interest in savings. Finally, the business development team
Figure 14: Direct Mail Campaign Schedule
Mailing
Members
Non-members
Mid-May
Steps (infant/blue eyes)
Patience-Love-Understanding
Late May
Helping (father/son—toys)
Steps (infant/blue eyes)
Late June
Steps (infant/blue eyes)
Helping (grandfather/father/
son—baseball)
Late July
Helping (father/son—toys)
Patience-Love-Understanding
26
Figure 15: WPCU Direct Mail Pieces
27
Figure 16: Appointment Card
was charged with reaching out to local community organizations and
nonprofits currently serving LMI families.
Finally, WPCU made a number of important decisions regarding
targets for this campaign. First, direct mail pieces were sent to both
members and non-members fitting the income demographics. The
goal here was to encourage members to save more and potential
members to join WPCU and save. Second, WPCU decided not to
focus the campaign solely on women and mothers. According to Jeff
Carpenter, vice president of membership and development, “We did
not want to alienate any men. We also recognized that there are a
lot of single dads with kids and we wanted to nurture that group as
well.”
Findings
Tremendous excitement was felt from the participating member
centers in the early stages of the test. Following the first and second
mailings in May, the initial
qualitative responses from the
Instead of us and our products, it’s [the campaign is]
WPCU member centers—
about them [our consumers].
members and employees—were
quite positive. Using ZMET
— Member center manager, WPCU
images and messages generated
palatable enthusiasm. Visitors to
the member centers were requesting the appointment cards, although
it was more that they liked the image, not necessarily due to having an appointment set up. By mid-June, the initial excitement for
the direct marketing campaign and in-branch collateral had faded
somewhat.
28
However, enthusiasm was now coming from community outreach
efforts, as WPCU business development had approached 11 community organizations with the new marketing material. “ZMET
allowed me to reach organizations/communities that WPCU had
not been able to communicate with before,” noted Melissa Hall of
Wright-Patt. “I now am a regular visitor to the East End Community
Services; they signed on as a SEG with us. I can see that seeds were
planted.” WPCU now speaks regularly with many of these community organizations, and it has the opportunity to offer its products,
services, and on-site account sign-up.
Tracking quantitative results for an umbrella campaign of this type is
difficult. Anecdotally, six visitors reported that the direct mail campaign brought them to a member center. This could be indicative of
many factors: economic impacts, member center–level effects, and
marketing channel effects. First, feedback starting in June focused
on the serious deterioration of the economy in Ohio and its impact;
this included a number of important plant closings. Second, these
three member centers experienced significant declines in key metrics
during the test period. Finally, some of the marketing channels (e.g.,
direct mail) necessary for a contained pilot test may have limited the
campaign’s reach and impact.
While no clear quantitative results exist for this small test, the general
take-away for Wright-Patt is a belief that seeds have been planted.
According to Jeff Carpenter, WPCU also realized it needs to eliminate any preconceived notions about how LMIs act or think. In
addition, WPCU saw the importance of staff training, especially
related to the aforementioned. Finally, it found that simply reaching
out to frontline staff for participation creates positive feelings from
being engaged in such an important project.
Given the feedback from community organizations and the quantitative results, it is hard to decipher the overall impact of the ZMET
materials. The images and messaging clearly have a positive effect on
organizations that work with LMI consumers. At the same time, the
call to action may have been too vague for members and potential
members to follow up. But a few important questions remained after
the test period:
• How many LMI households actually received and saw the material? Of those who did, what did they think?
• More specifically, did they find the images and messaging credible, relevant, and engaging?
A follow-up focus group or survey was beyond the scope of the
project. However, we would recommend follow-up in subsequent
studies.
29
CEFCU
Based in Illinois, CEFCU has $3.6B in assets and serves 235,000
members. Originally founded to serve Caterpillar employees,
CEFCU has expanded to 19 member centers serving 14 counties and
471 SEGs. CEFCU estimates
that 30% of current memThe research pointed towards a direction that aligned
bership is LMI. The annual
closely with CEFCU’s corporate values and mismarketing budget for CEFCU
sion: a desire to empower members to improve their
is $3.4M.
financial well-being. This was an opportunity to learn
CEFCU already has a number
more about how to effectively do the right thing for
of projects and initiatives to
members.
assist LMI consumers. One
— Jennifer Flexer, marketing manager, CEFCU
example is the Quick Advance
Loan, which is an alternative to
traditional payday lending that involves no credit check for shortterm loans of $50–$500. In addition, CEFCU offers free phonebased financial counseling for members to help them with savings
plans, getting out of debt, and other important personal finance
issues.
Like many credit unions, CEFCU offers a variety of savings products, from the basic share account to share certificates. While most
of the products are similar to products found in other credit unions,
the My Use accounts were originally conceived as envelopes in which
individuals might earmark money for specific purposes or expenses.
During the development of the pilot, CEFCU focused on the
My Use accounts as the best option for serving LMI consumers.
The Pilot Test
In contrast to WPCU, CEFCU decided to focus the call to action on
a single product, the My Use account. This account allows members
Figure 17: CEFCU Savings Products
Savings product
Product details
ZMET insights
Share account
$5 to open (+ $1 one-time membership fee)
$5 minimum balance
Traditional savings account product;
straightforward and easy to understand
My Use account
$5 to open (for member)
No minimum balance requirement
Member chooses account name (e.g., savings
goal)
Straightforward and easy to understand; goaloriented
Santa Saver
$5 to open (for member)
No minimum balance requirement
Choose payout date of 10/1 or 11/1
Focused on short-term (holiday), popular
savings goals
Money Market
No fees with $2,500 average daily balance
High-balance requirements not feasible for LMI
consumers
Certificates
$1,000 minimum balance
Terms of three months to five years
High-balance requirements not feasible for LMI
consumers
30
to determine their specific savings goal (and name the account
appropriately) while earning a dividend. A member can have up
to 20 My Use accounts at any one time. The campaign included a
$5 gas card promotion, given that the chosen member center was
located in a gas station. However, this promotion amount was less
than the standard CEFCU promotion for its marketing, which is
usually in the $20–$25 range.
CEFCU decided to conduct a pilot test at its member center in the
poorest section of Peoria. Early on, the member center manager was
engaged to discuss the dynamics of the local community and share
thoughts about how to reach LMI consumers.
To develop a new and innovative creative, CEFCU engaged its advertising agency, Maring-Weissman of St. Louis. CEFCU and its vendor
determined that an appropriate
step was for the advertising firm
to visit the member center and
Please see filene.org/publications/detail/reachingLMI for addithe surrounding community in
tional information about the CEFCU ad campaign, along with
order to gain a firsthand view
alternative ads not highlighted in this report.
of the situation. This approach,
along with thoughtful engagement of the ZMET research and methodology, led to the development of some powerful creative and marketing ideas expressed in
three strong campaign options.
The CEFCU team chose to go with a campaign built on empathy, on
the basis of the research of LMI female parents (see Figure 18). The
core message, “We believe in you,” is juxtaposed with a picture of a
mother and her daughter walking in very dark, ominous woods; the
path they are on leads to a bright light out of the forest. The image
and language were chosen for their powerful emotional resonance.
Figure 18: CEFCU Small Billboard Ad
31
Materials were selected for their potential to be targeted geographically; because CEFCU wanted to limit the pilot to one branch, this
was a key factor. The CEFCU team decided on a set of executables
that included the following:
• An ad in a community newspaper—run multiple times through
October, and published every two to three weeks.
• Wednesday insert in the daily newspaper (Peoria Journal Star),
targeting zip codes that feed that branch.
• Billboard (12 feet by 25 feet), up for four weeks.
• Direct mail piece with a letter from the branch manager to nonmember, female-headed households with incomes under $30K.
CEFCU estimates the cost of the campaign at $30,000. More than
half of that cost is the investment CEFCU made in the new imagery
and messaging through its advertising firm.
Findings
Many of the quantitative results of the CEFCU pilot are very positive; however, limitations in data tracking and reporting prevent
a detailed picture. A year-over-year comparison of the two pilot
months (October and November) found that 104% more credit
union share accounts (82 increased to 167) were opened at the pilot
member center. These accounts represent 85 new members.
In addition, 23 new My Use accounts were opened, and 58 $5 gas
card promotions (see Figure 19) were issued to members who opened
a My Use account or made a deposit. The presence of the incentive raises the issue of whether the behavior observed was due to the
marketing or the promotion. Since the normal incentive for CEFCU
is $25 or more, it seems possible the new marketing approach may
have played a significant role. Further, individuals who opened a
My Use account would still have needed to join the credit union,
deposit $6 in a main share account, and deposit another $5 in a My
Use account, representing an $11 commitment along with the time
required to open the account in exchange for a $5 incentive. Finally,
the small billboard ad did not mention the incentive.
Given the economic circumstances in late 2008, the uptick in new
member share accounts might be reflecting movement of money to
the credit union system by worried consumers. However, it should be
noted that a cursory review of these accounts indicates the majority
were carrying small balances; so, if consumers were moving money, it
was not large sums.
While these issues do not immediately clarify the observed results,
the pilot test does raise some interesting questions regarding the new
members and the new My Use accounts:
32
• Are the new members LMI? Or, more interestingly, previously
“unbanked”?
• Do the images and messages in this campaign fortuitously fit the
reality of the economic downturn?
• How important was the use of the small billboard in reaching the
target audience?
Figure 19: CEFCU Direct Mail Insert with Incentive
33
Mission SF Community Development
Credit Union
Mission SF is a $7M community development credit union with one
location based in the Mission District of San Francisco. With limited
resources, Mission still wished to pilot test the ZMET research.
While Mission does not have the marketing resources of the previous
two institutions, it is fully aligned to serve LMI households. Rather
than fight a brand credibility battle, Mission is more likely to face a
brand “identifyability” battle.
Mission’s Ivan Barriga led the effort to create an ad for a local
community event. He placed an ad in the Carnaval San Francisco
Event Guide, published by a local newspaper, El Mensajero. Mission
received free graphic design services from the newspaper. Mission
Figure 20: Marketing Ad
34
provided the newspaper’s graphic design department sample ads from
D2D, along with copy, its logo, and some images from the Internet.
The newspaper provided the final image and produced the final
design.
Findings
Figure 21 shows total share dollars and total new shares for the community development credit union during the time frame relevant to
the implementation of ZMET. Mission believes some of the increase
in new shares was due to the ad. However, other marketing and
business development activities were under way in the community
that also impacted this number. In May, Mission increased total
share dollars by $61,611, or 0.87%, and increased total number of
new share accounts by 42.86%. In June, Mission increased total
share dollars by $65,627, or 0.92%, and increased total number of
new share accounts by 55.00%. Clearly, Mission had a significant
increase in new accounts, but only one person used the coupon in
the advertisement.
Mission believes that advertising in the event guide was suboptimal,
as many readers were outside Mission’s field of membership. In addition, local festival organizers did not hand out many of the books to
attendees, limiting reach. Mission believes an ad like this one should
be seen four to seven times by the target audience; however, funds
limited media placement and direct mail opportunities. Mission also
thinks the ad was so busy that the clear call to action may have been
lost on some viewers.
Figure 21: Share Data
Total share dollars
Total number of new shares
Jan-08
Date
6,860,799
25
Feb-08
7,045,177
29
Mar-08
7,033,848
33
Apr-08
7,042,092
28
May-08
7,103,703
40
Ad in the Carnaval San Francisco Event Guide, May 22, 2008
Jun-08
7,169,330
62
35
Chapter 5
What Did We Learn?
The researchers found that a clear call to action
and compelling images are needed to emotionally engage the consumer, choosing more
emotionally provocative images allows a more
successful connection with LMI consumers,
educating individuals involved in the creative
process is vital, and ZMET marketing can be
more successful when targeted toward a specific
segment.
While the quantitative results for these pilots are limited, the goals
of the pilot studies were straightforward: to see what professional
credit union marketers could do with ZMET study findings, and to
see what could be learned by watching them implement a ZMETinfluenced campaign. This section reports observations from these
early, small tests for the LMI market. While just a sample of the three
campaigns, each conducted in very different communities, at different times, and employing different resources, the observations from
these tests should help other credit unions contemplating a campaign
of their own based on the ZMET research.
1. A Clear Call to Action May Help
Emotionally Engaged Consumers
Know What to Do
One important distinction between WPCU’s marketing material and
the marketing material that CEFCU and Mission SF put together
was the clear call to action, tied to a small incentive, employed by
CEFCU and Mission. To the extent that CEFCU and Mission saw
more measurable results, it appears their clear calls to action helped
consumers, already emotionally engaged by well-chosen imagery,
know what to do next. While it is not clear how much impact can
be credited to ZMET-influenced marketing and how much to the
incentive, we know from CEFCU that, historically, small incentives alone have not generated the results observed after the ZMET
marketing campaign. The $5 gas card incentive CEFCU offered
almost offsets the $6 ($5 deposit and $1 fee) required to open a share
account; in this case, the incentive may have simply helped prospective LMI savers overcome a common “entry barrier”—openingbalance requirements.
38
2. While Risky, Choosing More
Emotionally Provocative Images Could
Connect More Successfully with LMI
Consumers
Another important distinction of the CEFCU marketing material
was the type of image chosen. WPCU and Mission SF chose to focus
on familial closeness and the importance that mothers expressed in
the research about providing financially to bring family together.
In contrast, CEFCU presented a stark, even threatening image of
a foreboding forest—yet still featured a mother and her daughter
holding hands, in this case walking toward a well-lit distant point.
The choice to acknowledge—even to feature—the frightening reality of people’s daily lives through the ad’s imagery appears to have
connected in the target community. Such imagery stands in stark
contrast to the standard fare of the financial services industry, which
often features couples walking on beaches or lounging in hammocks,
smiling new homeowners or recent graduates, and brightly colored
piggy banks and dollar bills. It is possible that the unusual imagery of
the CEFCU campaign was eye-catching in its own right (as were the
WPCU images), but it also subtly suggested the message was coming
from a financial institution willing to take chances and not engaged
in “business as usual.”
3. Educating the Developers of
the Marketing Creative—Whether
In-House or a Vendor—Is Essential
to Ensure the ZMET Research Is
Reflected in Proposed Campaigns
Both WPCU and CEFCU used advertising agencies to generate
the creative for their campaigns. In each case, D2D and the credit
union presented the LMI research findings to the ad agency and also
explained the ZMET technique in detail. In both cases, the credit
unions’ vendors took the time to listen and absorb these presentations, and the resulting marketing creative—both the ideas selected
and those that were not selected—reflected core research findings.
(Note: Credit unions can supply their marketing teams with this
report through the link filene.org/publications/detail/reachingLMI).
In the case of CEFCU, its vendor, Maring-Weissman, was notably
energized by leaning about the ZMET findings and proposed a
site visit to the branch and surrounding neighborhood chosen for
the pilot. The three campaign proposals Maring-Weissman generated were all deemed strong options by CEFCU, and no time was
needed for substantive revisions or refinements. While we cannot
39
know for certain, it seems quite possible that the “dark forest, distant
bright future” was influenced by the creative team’s visit to Peoria. In
contrast, Mission SF’s modest resources meant it relied on pro bono
graphical design provided by its newspaper partner. Perhaps not surprisingly, much less of the feedback from LMI consumers brought to
light through ZMET interviews was reflected in the Mission ad.
4. Focusing on Messages and
Imagery for LMI Households Opens
a Broader Discussion about How to
Reach and Serve These Members
Serving LMI consumers, especially given how they express their concerns in the ZMET research, opens a discussion beyond advertising
material. While the ZMET research teaches us about messages and
imagery, it also provides some insight regarding product offerings,
customer service, and community relations.
• Product offerings. The ZMET research indicates that LMI savers
want simple, easy-to-understand savings tools.6 As a result, both
WPCU and CEFCU settled on club account offerings as the best
option for the LMI market.
• Customer service. ZMET speaks clearly regarding what LMI
consumers want from interactions with financial institutions that
engender their trust—people they can relate to, people who speak
their language, people who know where they are coming from.
Training frontline employees to meet these needs is an important
part of serving this market. Understanding this, WPCU created
training scripts to better prepare its employees to match consumers to appropriate savings products.
• Community relations. Building trust among LMI consumers
requires reaching outside the member center to engage the surrounding community where members and prospective members
live. While “community outreach” may not traditionally be considered a marketing channel, it appears to have been one of the most
effective for WPCU. In addition, it allows a credit union to showcase an array of products and services that may be beneficial to the
community, thus bolstering claims made by the brand in ads.
5. ZMET-Influenced Marketing Can
Be Implemented on Different Scales,
from Small to Substantial
With the high-quality collateral displayed in this report, credit
unions might conclude that ZMET findings are helpful only for
larger credit unions with sophisticated marketing departments. Yet,
40
the three pilots discussed here represent three different campaigns
of three different scales. Although CEFCU does not traditionally do branch-specific marketing, in this case it found piloting
the ZMET research at one member center worked best. Similarly,
WPCU was able to focus on three member centers while also making an effort at a broader community outreach to extend its channel
reach. Perhaps most importantly, Mission SF was able to translate
the research quickly, independently, and in an ad hoc way to meet
its budget and needs. Without employing an advertising vendor or
using a large budget, Mission still absorbed what it found helpful
about the ZMET findings and incorporated it into a promotional
advertisement.
6. ZMET-Based Imagery and
Messaging May Be Most Effective
When Targeted More Specifically at
Segments within the LMI Market
Not surprisingly, the LMI market includes a range of ethnicities,
family types, ages, and both genders. In some cases, the ZMET
research has identified marked differences among LMI subgroups.
For instance, men and women appear to respond to different metaphors and imagery. Yet, with just a single campaign at their disposal,
the credit unions engaged in the pilot campaigns struggled with
which subgroups to target.
At WPCU, team members requested that the campaign not alienate fathers and try not to reinforce stereotypes (in this case, the idea
that lower-income households do not include two parents or do not
include a man). Perhaps as a result, three of five images WPCU ran
included men, all of whom were depicted as fathers. However, we
know many lower-income households are headed by single women.
It is possible that hardworking mothers were not engaged by, or had
a negative reaction to, images portraying two-parent families, with
engaged, smiling husbands and fathers. WPCU’s campaign was well
received by all accounts; nonetheless, as credit unions consider their
own campaigns, they may wish to consider the possible cost of not
more narrowly tailoring images.
Interestingly, CEFCU chose to feature a woman and a child alone
in its advertising material. The credit union received no complaints
regarding these ads, while in previous campaigns members have
expressed concerns about the implicit stereotypes of chosen images.
With limited information regarding the demographic characteristics
of the new CEFCU account holders, it remains unclear exactly for
whom these images may have carried the most weight.
41
7. We Know Little about How LMI
Consumers Think about Individual
Credit Union Brands
The ZMET research has not studied how LMI consumers perceive
individual credit union brands. We do not know how ad campaigns
by WPCU, CEFCU, and Mission SF matched in consumers’ minds
with the brand names of those credit unions, or how such a match
or mismatch may have impacted consumers’ emotional engagement
with ZMET-influenced images and messaging. As the pilot studies progressed, we wondered if the test campaigns were leveraging a
solid brand reputation to bring in positively predisposed consumers (as, for instance, executives at WPCU reported), building brand
awareness among an audience that was not previously aware of these
institutions, or seeking to overcome an existing bias against the credit
unions’ brands. We simply did not—and do not—know.
This point speaks to the challenge credit unions face in marketing to an LMI audience generally, and to what goals the credit
unions might look to ZMET-influenced imagery and messaging to
accomplish. It may also suggest that different circumstances call for
different campaigns. Where brand awareness or equity is low, an
institution-focused campaign may make sense. Where brand awareness and consumer feeling toward it are already positive, the ground
may be laid for a campaign featuring a specific product or more
seemingly risky imagery.
We do know from the research that LMI consumers generally do not
trust financial institutions, and rebuilding this trust can begin with
imagery and messaging that speak to the concerns and real-world
circumstances of LMI savers. Because LMI consumers are looking
for institutions that speak their language, have their best interests
at heart, and “get” them, credit union brands—with their member
organization orientation—may have much more to offer this socioeconomic segment than other financial service providers.
8. Credit Unions Should Consider
the Value of Community Outreach
as a Complement to New Marketing
Images and Messages
Both WPCU and CEFCU employed direct mail tools to try to
generate a response from consumers. While allowing the tests to be
directed to members and prospective members who met defined
geographic or demographic criteria, it is asking a lot of direct mail
42
to, by itself, fully engage consumers. The low average response
rates for direct mail are well known, but the degree to which these
response rates vary in households of different income levels is less
well understood.
At the same time, developing strong connections in LMI communities presents opportunities to leverage other organizations as
marketing channels. The work WPCU did to engage community
organizations appears as one of the most fruitful methods to reach
the intended LMI audience. Similarly, Mission SF chose a community event through which to deploy its ZMET ad, although it feels
that the event chosen for the booklet ad did not reach the intended
audience. Even CEFCU considered a community event outreach
during its pilot planning process.
In many ways, this community outreach makes tangible the messages
and images of the advertising campaign and may be an important
part of the mix for engaging LMI consumers.
In addition, the value of fully understanding community marketing
channels can prove beneficial. Spending time in the community, as
Maring-Weissman did, can help illuminate ideas and options. For
example, CEFCU used a small billboard that extended the reach of
the campaign beyond the member center.
Next Steps: Looking Ahead
Being the first to pilot any innovation is fraught with challenges and
upfront costs. WPCU and CEFCU committed both significant staff
time and money for a new marketing creative to make these pilots
happen. Mission SF took on the challenge of putting the research
into action despite having fewer resources to draw on. In addition,
all agreed to allow D2D to learn from the endeavors and understand
exactly how the ZMET research can be applied in the credit union
system.
Our observations from these endeavors highlight that marketing
innovation alone is not a silver bullet for engaging the mind-set of
LMI savers. The results from this work highlight important next
steps for marketing innovation:
• Additional ZMET studies regarding LMI households’ thoughts
and feelings about credit unions specifically. This research would
help further hone how credit unions can exploit their unique
position to help low-income savers.
43
• Leveraging the material from these pilots, credit unions should
organically pilot test additional marketing campaigns. The more
marketing tests undertaken, the more that can be learned about
how different images and messaging influenced by the research
impact low-income savers.
• Credit unions might want to explore extending the use of metaphors up the income demographic, especially as the financial
crisis creates consumer turmoil. The ZMET tool is not simply for
low-income savers, and this methodology can help the industry
explore how to differentiate itself in advertising space.
44
Using ZMET at Your Credit Union
Using the work of WPCU, CEFCU, and
• Review ideas with an eye toward
Mission SF as examples, any credit union
(1) how LMI consumers might perceive
wishing to test the waters with the ZMET
the ads and (2) how the ads fit with the
methodology should pursue the following
overall credit union marketing.
steps:
• Include branch managers and
• Review the ZMET methodology and
D2D research.
• Review current credit union savings
market material, looking for metaphors
employed.
• Review credit union product offerings
and assess opportunities to position
savings products for the LMI segment.
• Analyze branch-level data on LMI
member and neighborhood data to
determine best locations to deploy
marketing.
• Visit the neighborhoods and communities identified by the data review, along
with the member centers serving those
areas.
• Engage current marketing material creative development process to
generate new imagery and messaging
employees with a good understanding of LMI members and
consumers.
• If possible, convene LMI member
focus groups to review materials and gauge reactions while also
understanding marketing channels
that reach the audience.
• Determine appropriate “call to action”
for consumers emotionally engaged by
the ZMET materials.
• Develop appropriate staff training materials, if necessary, to increase customer
service levels for small savers.
• Identify business development outreach opportunities in order to leverage
ZMET material to reach LMI consumers
through trusted partners.
• Deploy marketing and look for opportu-
with the goal of generating two or three
nities to marry material with other LMI
concepts.
initiatives.
45
Endnotes
1. For more on ZMET, see How Customers Think: Essential Insights
into the Mind of the Market, by Gerald Zaltman (Boston: Harvard Business School Press, 2003).
2. The contributing credit unions were Affinity FCU, Affinity Plus
FCU, Baxter Credit Union, BECU, BestSource Credit Union,
Bethpage, CEFCU, Centra Credit Union, Desert Schools FCU,
Digital Federal Credit Union, FORUM Credit Union, Goldenwest, Langley Federal Credit Union, Local Government FCU,
North Carolina State Employees Credit Union, Orange County
Teachers Federal Credit Union, Patelco, Provident Credit Union,
PSECU, Veridian Credit Union, Virginia Credit Union, and
Wright-Patt Credit Union.
3. The frame of reference for assessing this material is that of the
D2D research team. However, LMI households may have a different perspective when shown these images and messages. We
have done our best to infuse our thinking with what we have
learned from and about LMI savers.
4. This account requires (1) a minimum average daily balance of
$0.01, (2) $5.00 currently on deposit in the member’s TrueSaver
account, (3) the member is not delinquent on any loan obligation to the credit union, (4) the member does not have a negative balance in any share account owned with the credit union,
and (5) the member has not previously caused the credit union
a financial loss of any kind. The account must have an active
checking account. An active checking account has a minimum of
four qualifying transactions per calendar month, in any combination. Qualifying transactions are (1) bill pay transactions,
(2) ACH deposits and withdrawals, (3) debit card transactions,
(4) point of sale transactions, and (5) cleared drafts. The account
must have at least one direct deposit transaction within a 45-day
period or be set up to receive EStatements.
5. From other research, we know LMI consumers are often prevented from opening checking accounts by ChexSystems; in one
test, 26% of LMI tax clients who applied for a savings account
were denied by a bank’s ChexSystems policy (see Sondra Beverly,
Peter Tufano, and Daniel J. Schneider, “Splitting Tax Refunds
and Building Savings: An Empirical Test” [working paper
06-018, Harvard Business School, Finance, Boston, 2005]).
6. Peter Tufano, Sondra Beverly, and Daniel Schneider, Leveraging
Tax Refunds to Encourage Savings. Retirement Security Project
policy brief 2005-8, August 2005.
46
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D2D Fund, Inc.
Jeff Zinsmeyer
D2D Fund, Inc.
Tim Flacke
D2D Fund, Inc.
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