USAA defines what it isn’t in massive ad push
June 8, 2009
Usually known for its understated and reserved approach to marketing, USAA is going on the attack in its latest ad campaign, reportedly the largest ever for the member-based financial organization.
The campaign is built around the what USAA isn’t and what it didn’t do: no bailouts, no greedy Wall Street bankers, etc.
“They charged you $38 billion in fees, and some still needed a bailout,” reads one ad. “We believe the only banks that can claim financial stability are ones like USAA that didn’t take a dime in TARP funds,” reads another.
USAA, whose membership is closed to military families, is running the campaign in cities with significant military populations. The campaign invites military men and women who are not yet members to, “Try USAA.” The basic call to action is used as a common refrain in each of the ads.
The campaign — estimated at $25 million — includes print advertising, billboards, radio advertising, direct mail, email and online marketing, and will run through early November.
One unique component of the campaign is coffee sleeves with messages such as: “What’s more bitter, a $3 ATM fee or a $3 cappuccino? Try USAA Bank.” They will be distributed by independent coffee shops in all of the USAA’s major markets, according to an article in MarketingDaily.
The message USAA intends to send is, “We are responsible.” But for some people, it might come across as, “Hey, at least we didn’t screw up.” That might leave them wondering, “So what? Big deal? You didn’t make the same reckless mistakes as others.”
Reality Checks:
- People aren’t going to heap praises on companies just because they didn’t screw up.
- Everyone has been bashing big banks for months. The “We’re-Not-Like-Wall-Street” space has gotten really crowded in the last few months. Congress. The media. Even local delis and coffee shops are piling on. Besides, if you don’t have a corporate jet, you’re just like 99.9% of all the other companies out there.
Unlike most banks around the world, USAA Federal Savings Bank returned a healthy after-tax profit of $188 million in 2008. USAA’s president and CEO Joe Robles said USAA continues to be profitable in 2009. “We did not take a cent of government bailout money,” he said an email to members. “In fact, we returned $857 million to our members last year.”
$368 million of it went to members through ATM surcharge rebates, rebates for buying or selling a home through USAA, credit and debit card rewards and home-equity loan closing costs paid by USAA.
The campaign is the work of Interpublic Group’s Campbell-Ewald, who won the USAA account earlier this year. The agency also handles ad responsibilities for the U.S. Navy account.
Key Takeaway: Juxtapositions can be immensely powerful (think about the Mac vs. PC ads from Apple), but you will only get so far by defining what you aren’t. The rules of advertising still apply and there has to be real consumer benefits. Simply saying “we’re not like them” doesn’t cut it. As Bryan Clagett, a branding and marketing consultant, recently put it, “Sure, safety and soundness are important, but there needs to be an even greater value proposition.”
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Filed Under: Advertising
June 10th, 2009 at 10:16 am
Hey Jeffry,
Good post. I agree with the closing quote and focusing on the positive (as I took your post) and not just keying in on the “we’re not like them.”
I will say though that I’ve been a very satisfied customer of USAA for nearly two decades. If they offered biz banking, all my banking would be with them. I also have other banks just for the fun of it (not totally accurate) — like Wells Fargo and ANZ.
Very satisfied wouldn’t cover it. I’m a raving fan. I’m sad that non-military families don’t get to experience what USAA offers as it is not something to be taken lightly. Forget all the advertising, all the marketing, all the jargon — they provide an amazing service. Think about it: Use any ATM and they refund you the charge. We have pretty high expectations as customers and treat many things as our rights, but they provide the service and could pass the charges on. They don’t.
They send me a large rebate check every year on insurance. Every year. And this isn’t because their insurance is above market in cost, but very competitive. I get a rebate of a few hundred bucks every year because they manage their financial house incredibly well. So, in many senses, for me, they deliver, and that gives them the right to boast a bit. They didn’t take TARP money NOT because they didn’t make mistakes, but because they made smart decisions. That may be the same for other banks that didn’t, but it could have just as easily been luck. I have a feeling that USAA wasn’t lucky, but prudent and smart. That’s my bet. I am fortunate to be able to bank and insure with them. And to have my home mortgage with them. And my credit cards…
I’m not picking on you, by the way, just adding my endorsement of USAA.
July 22nd, 2009 at 9:47 pm
I have been a USAA customer for almost 30 years and have most of my banking and financial products with them. I also make very good money, have a stable job, own my own home, and have excellent credit. I was therefore extremely shocked when they turned me down for a loan that they had marketed to me as “pre-approved.” The reason – I had too much available credit WITH THEM. The computer turned it down – it took no more than 30 seconds – and I have yet to get a coherent explanation as to what is “too much available credit.” All their customer service people can say is “times have changed” and “we don’t give out that information.” Oh, and they offered to lower my credit limits to see if that would help me qualify, which of course would put another black mark on my credit (after the loan decline). I guess the money they could have extended in credit went to sponsoring the Army-Navy game and all that new advertising. I am very disappointed that USAA seems to be going the way of everyone bank – use the economic situation as an opportunity to make higher profits by denying credit to loyal, longtime customers.
August 19th, 2009 at 2:50 pm
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