Trust makes the difference in successful e-commerce ventures for credit unions

As I drove through San Francisco over Memorial Day weekend, something struck me. Every single billboard I passed was touting the "dot com" shopping experience. Obviously, I recognize that I was just a few miles from Silicon Valley in what might be considered the most tech-savvy city in the world. But I could just have easily been standing in Des Moines, Houston or Little Rock. If you look around you these days, it doesn't matter where you are or what you're doing, "dot coms" have permeated every part of our society. And, as we all know, the majority of these companies want to sell you something. Everywhere you turn, both traditional and Internet-based companies alike are asking for your (and your members') money for online purchases. There is no doubt that American consumers' interest in online shopping is growing exponentially these days, especially with all the enticing offers of great deals, convenience and free delivery. And with over 55% of America's credit union members online, a large portion of your membership is likely to have already tried online shopping, either through a commercial portal or through an e-tailer's website. But many consumers are finding that the online shopping experience is a little intimidating. With so many e-tailers pushing so hard for the instant sale without giving the consumer any advice or product information, it's no surprise that consumers feel overwhelmed by the Internet e-commerce experience. I have read that the majority of e-commerce transactions that are abandoned prior to payment happen because the end user does not trust the e-tailer's Internet payment mechanism. And the statistics indicate that as much as 95% of all online e-commerce transactions are never completed for this very reason. Consumers are stopping the process right at the point of checkout, and are going back to "safer," more traditional shopping methods to actually make their purchases (i.e., via telephone, in person, etc.). The reason consumers are afraid to complete the online transaction is also the underlying reason for the lack of trust between the consumer and the e-tailer: the online retailer is an intangible, faceless, unknown entity to the member. This is where credit unions have a distinct advantage in the online marketplace. When it comes to e-commerce opportunities, credit unions are in a very unique position. The advent of the customizable portal has allowed credit unions to develop an online presence that reinforces the trust that consumers must have in order to confidently complete financial transactions over the Internet. Historically, credit unions have acted as their members' financial advocates, offering low interest rates, financing advice and management of their financial futures. Now is the time for credit unions to parlay this trusted advisor relationship onto the Internet by blurring the lines between financial and non-financial product offerings in order to expand their role and become the consumers' all-around Internet advocate. In addition to offering consumer information prior to and during the sale as well as providing the financial solutions to complete the transaction, credit unions now have the ability to manage their members' entire Internet lives. An e-commerce portal branded to your credit union creates a safe environment for your members on the Internet. This enables your credit union to serve your members in an advocacy role while allowing them the freedom to shop and search online without worry. In addition to your own financial products and services, the portal will allow your credit union to offer traditional Internet features, such as news, travel, free e-mail, shopping, mortgage lending, auto buying, leasing and financing, search capabilities and more.your In order to establish your credit union as your members' trusted online resource, your credit union should serve your members' online needs in four ways: 1. Show Your Members That You Are Their Internet Advocate: Let your members know you are on their side by protecting their personal, financial and online activity information. This should be your credit union's top priority - especially online. The member must be confident that their credit union will not disclose their personal or financial information to any outside vendors or service providers. 2. Become Your Members' Internet Advisor: Inform your members about online retailers, products and services through unbiased product information and comparisons. Make sure your credit union is giving your members as much information as possible during their online shopping experience. 3. Serve As An Internet Aggregator: By leveraging the buying power of your entire membership in negotiating with online retailers, your credit union will be able to secure special purchasing opportunities and incentives for your members without having to disclose individual members' identities or information. 4. Play the Role Of Internet Gatekeeper: Combine your credit union's financial products, services and payment methods with the offerings of carefully selected and pre-screened e-tailers on your credit union's portal. This enables your credit union to assure your members that they are doing business with their credit union rather than with unknown online entities they do not trust. One last word on e-commerce: make sure the Internet marketing partner you select provides a program that enables your credit union to receive commissions on the actual revenue made from e-commerce onlinepurchases on your portal. This will help you turn your credit union's Internet marketing initiative into a revenue-generating program, which can sustain your Internet and e-commerce activities well into the future. In order to maximize your credit union's e-commerce potential, it is critical that you select the right partner to enable your credit union to provide all of these services to your current and potential members. Make sure you choose an Internet marketing partner that understands your credit union's advocacy role and takes it as seriously as you do.