I would like to discuss a financial product (Auto Loan to be precise) offered by DCU or Digital Federation Credit union. DCU is for profit credit union based out of Marlborough, Massachusetts, offering financial products to retail users, such as savings account, checking account, credit card, insurance and different loans. The Auto loan offered by DCU has the best rate and it is very popular in the New England region of the east coast of United States.
DCU competes against big names such as Bank of America, Chase. And yet DCU manages to get the lowest rate on the auto loan to its 500000 + members (Muckian, 2014). But, the reason DCU Auto loan is most popular in the region because even the members with bad credits get a good rate. And the difference usually is huge. Like one user Tracy Williams was being charged 24.29% by big banks, DCU charged her only 5.9% despite her bad credit score. (Williams, 2018). Now that we are a little bit familiar with the brand and its product, we can switch our focus to the strategy that has helped DC gain this success.
Here are few of the DCU strategies –
Create a Brand Identity – DCU is a member only, not for profit credit union and its vision is “All Members Achieve Their Financial Goals” (http://dcu.org). DCU wants to help its members achieve their financial goals without cutting the corners. DCU has successfully differentiated itself from other big banks with their value proposition and their no-fee products (i.e. checking account/saving account) and low APR loan products.
Be Consistent over time – DCU was established in the year 1979 and ever since they have stood by their value proposition. They are consistent over time to offer low rate loans and no fee banking accounts to its members.
Track the Equity – Tracking equity of DCU brand is easy. Because DCU members who have bad credit can get a great rate on a Credit card or auto loan. And since they have a loyal member base, most of the members get referred by word of mouth. So potential customers are made aware of the brand by other members that show the brand equity is pretty great.
Brand Development activities – DCU center has been built in New England region as a premier arena and convention complex (https://www.dcucenter.com/) which does a good job in increasing brand awareness in the region.
Investing in the Brand – DCU entered with a partnership with the city of Worchester and built DCU arena in the year 2004 and DCU sponsors the area to build the brand equity since the year 2004.
These are few ways DCU has taken to build brand awareness in New England region of United States. But the best part is, of course, the products offered by DCU to retail users, such as no-fee checking and savings account or low APR Credit card and auto loans even for people with bad credit score, which help people to get back on their feet fast.
William, T. (2018, January). Digital Federal Credit Union
. Retrieved from https://wallethub.com/profile/digital-federal-credit-union-13311008i/
Muckian, M. (2014, October). Top 20 Credit Unions. Retrieved from http://www.cutimes.com/2014/10/07/top-20-credit-unions?page=9&slreturn=1518823453
Retrieved on February 16, 2018, from https://www.dcu.org/
Retrieved on February 16, 2018, from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=4276489
Retrieved on February 16, 2018, from https://www.dcucenter.com/
Retrieved on February 16, 2018, from https://www.dcucenter.com/about-dcu-center/dcu-digital-federal-credit-union/