Not even e-commerce initiatives can survive as Net-based only

BURBANK, Calif. - No Net service is an island. Credit unions that have launched Internet lending programs have quickly learned that the credit union must provide members with the ability to talk to a "live" person, whether it's the credit union's own internal member service center or a contracted call center arrangement. E-commerce vendors targeting the credit union industry have been coming out of the woodwork since late last year. While these high-tech, dot.com-like firms preach about the virtues of the Net, they are not ignoring the need for "live" member support either. CUShopper, Burbank, Calif., stormed onto the credit union scene last September with a way for credit unions to provide financing behind big-ticket consumer goods, such as computers, jewelry, electronics and others, bought online through the CUShopper Web component. In only six months of marketing to the credit union industry, the company has already netted 700 CU clients. But the company's high-tech service isn't just about having the best Web service. The company is continuing to expand its call center support role. For CUShopper, providing member service call center support was a learning experience. "We had folks from credit unions, from the HR side of things all the way through to the loan processing and technology areas, convey and train call center staff about not only what it means to be a call center, but what the credit union industry is all about," said Jason Walker, senior vp of member services for CUShopper. CUShopper now has a 25 person call center staff to handle inbound calls from members. The call center has a process to find out what CU the member is calling from and pull up that CU's financing options to answer any financing questions. In many cases the rep winds up taking a loan application over the phone. During last year's holiday season CUShopper was receiving about 2,000 calls a week. A typical non-holiday week produces about 1,000 calls a week to CUShopper. "We don't `incentivise' our call center to have reps sell the most expensive product. It's focused around what the needs and wants of the members are," said Walker. Walker said reps can even give advice on what type of computer to buy. If a member only wants a computer for e-mail and Web surfing for example, the rep will likely keep that member away from high-end computers that are geared for professional-type graphics. That type of advice is helpful when 78% of CUShopper's computer buyers are first time computer owners. Walker said CUShopper is also committed to giving members a stronger voice when dealing with manufacturers that provide CUShopper with the consumer goods. "Dealing with these big manufacturers can be a real headache. We have a member support group that really assists the member in getting service and support from the manufacturer." Micron, one of CUShopper's primary computer suppliers, even has a credit union member only technical hotline just for CU members. "They know the credit union-member relationship. Service level is a tier above normal," said Walker. Walker said CUShopper's relatively new call center boasts less than a 1% abandonment rate. Because of the company's tremendous growth rate, Walker said it is moving into a two-story 100,000 complex in Glendale, Calif. He expects CUShopper staff to reach 255 in the next two months and be somewhere between 400 to 500 by the end of the year. -pgentile@cutimes.com