The credit union member experience used to surpass that of other financial institutions. But as banking practices grow increasingly digital, can credit unions keep up?
Some sources say that banks have already closed that gap. But the fight isn’t over yet. First, we’ll cover why member experience important. Then, we’ll discuss eight ways to improve it.
Contact us to see how your credit union’s member experience measures up with LiveSurvey!
Member Experience and Attrition
Credit unions usually lose around 20–25% of their new accounts within the first year. With average member acquisition costs rising north of $400, every member lost hurts your bottom line.
But few members leave a credit union they love. And providing great member experience is one way to ensure that your members are happy right where they are. Here are eight ways to provide that experience.
1. Get personal
This isn’t just about personalization—that comes later. We mean it more literally:
Don’t be afraid to connect with members directly.
This means digitally, not just when they enter the branch.
Good times to do this are immediately after a member:
- Applies for a loan;
- Visits a branch; and
- Makes a complaint.
For example, if someone gives your credit union a low survey score, follow up with them. Ask them what you can do to fix things.
This will show that you care about their experience and often turns your least happy members into your biggest fans.
2. Advise (financially)
70% of members feel that credit unions should give better financial education. Due to banking trends, these advisory services should be digital/online.
Credit unions should pursue content strategies to educate and guide their members. Blogs can teach general money management. Interactive calculators can show people the houses and cars they can afford. Infographics can help with budgeting.
3. Don’t forget the branch
Even though digital is paramount, branch optimization is still important. Branches are where many relationships begin.
Many people still like to open accounts in person. Ditto applying for auto loans and mortgages. For several demographics, branches are still a cornerstone of their member experience.
See what you can do to improve them here.
4. Benchmark member experience
Most credit unions overemphasize peer benchmarking and underuse member experience benchmarking. The former can tell you (roughly) how you stack up to other credit unions. But the latter can tell you how you’re performing relative to your members’ expectations.
Find whatever standard metric you like (e.g. NPS, CES) and measure it constantly. If your scores start to slide, do something.
5. Monitor the member journey
Member journey mapping is the practice of tracking and improving a member’s journey from account opening until account closing. Find the most important, impactful things a member might do, such as open an account or apply for a mortgage, and measure your performance in those areas.
Bring subject matter experts and stakeholders into this process. Give everyone an opportunity to see the experience from the member’s perspective—and see what they can do to improve it.
6. Take a few risks
Don’t take regulatory, compliance, or security risks, but do try new strategies and technologies to better serve your members.
Bring in vendors to provide new services. Think about what you can do before thinking about what you can’t do. Be ready to fail forward fast.
Do you want your credit union’s member experience to be forgettable? No! So, don’t be afraid to put yourself out there!
7. Optimize all channels
Omnichannel is about maximizing your reach, but it’s also about ensuring consistent, high quality member experiences. You’ll want to do that for all major satisfaction touchpoints:
- Branches
- Website
- Mobile app
- Social Media
- ATMs
What if your branches were dirty and had boarded-up windows? What if your ATMs looked beat-up and unlit at night? What if your website looked like it was designed in 2003 and each page took six or seven seconds to load?
That wouldn’t establish trust, and it would provide really, really bad member experience. Your attrition rate would skyrocket.
8. Embrace hyper-personalization
Hyper-personalization is table stakes thanks to modern digital juggernauts like Spotify, Netflix, and Amazon. Most consumers expect personalization and availability from brands. Is your credit union able to deliver?
You can get there through analytics and a good CRM, but that’s just a start. For example, LiveSurvey sends surveys triggered by specific member actions. Instead of long, generic surveys sent once per blue moon, we help credit unions send immediate, relevant surveys within minutes of completing their transaction.
Curate experience to each member (data is your friend here). Credit unions with generic experiences may not keep up with competitors who understand their account holders better.
Further Reading
Want to learn more about how to improve your credit union’s member experience? Or are you interested in learning how to create better surveys? If those topics sound interesting, subscribe to our blog!
Or simply request a short demo to see how LiveSurvey helps credit unions compete in the digital age.
