Service in the new millennium

Much has been said and written about how the new millennium is redefining members' service expectations. We've all heard how changing demographics, the influence of the Internet, and increased competition (among other factors) are requiring credit unions to respond to the ever-evolving service requirements of members. But what about the service requirements of credit unions? As members demand faster, better, more convenient service from credit unions, we must demand the same of our business partners. There isn't a credit union that can "go it alone" these days-particularly in fast-changing, increasingly complex arenas like technology and regulation. We're all relying on business partners to help us provide the products and services our members require. Without exceptional service from those partners, we don't stand a chance of meeting our goals. Although I speak from over 25 years experience at several different credit unions, my most recent experience as CEO of Alliance Credit Union probably best illustrates this point. Alliance serves two distinctly different markets. Nearly 75% of our 44,200 members reside in and around the Silicon Valley. It's a segment marked by high incomes and significant disposable income, along with less loyalty to financial institutions and greater demands for remote, electronic services. The balance of our members live in North Carolina. While many are employees of a division of GE, our oldest SEG, many of our North Carolina members tend to have less disposable income and prefer more face-to-face interaction. Delivering the vastly different products and services required by these two segments demands a strong partnership with technology providers - particularly when it comes to meeting the needs of our technology-savvy Silicon Valley members. Like most credit unions, we work with a number of business partners within the technology arena. In addition to our core system provider, we partner with third parties that offer expertise in specialized areas, such as 24/7 lending, asset/liability management, and marketing/MCIF. Our ability to retain our current member base and attract new members depends, to a great extent, on the service we receive from these technology partners. After all, if the Internet banking system doesn't work or the audio response system is always unavailable, you can't expect to stay in business for very long. When a partner's service so directly impacts your ability to serve members, how do you ensure that you're receiving the best service you can expect? 1. Choose a partner, not a vendor. It may sound clich, but you really do need a business partner to guide you through the technology world. A partner that will take the time to understand your organization, how it operates, how your staff works-and all of the other nuances that result in a higher level of service. One way we assess a vendor's potential to be a true partner is by talking with their clients to find out just how well the supplier's representatives have gotten to know their organizations. 2. Build relationships with people, not companies. Good service is only possible if you establish a rapport with the people who will provide that service. It can be tough to do these days, since we're all moving at warp speed. But once I took the time to build those relationships-and allowed my partners the time needed to do the same-I saw a resulting increase in the quality of the service we receive. 3. Get your strategic plans and philosophies in sync. Good service means your partner will provide what you need when you need it. And that can only happen if you share your plans and align your goals. For instance, knowing that USERS (our core system provider) was moving to a browser-based environment was important in planning our credit union's shift to a networked, intranet environment. Good service also stems from sharing similar operating philosophies. As an example, I believe it's important to know whether a supplier shares our views about keeping member data confidential, which is crucial to our Internet strategy. To ensure that your plans and philosophies mesh well, attend your partners' strategic planning forums and conferences, read their periodicals and talk to your Account Executives often. Doing so will directly translate to a better working relationship - and better service. 4. Demand accessibility. Our members expect fast, easy, immediate access to accounts and other information. We need to expect the same level of access to our partners' experts, the people we rely on to ensure uninterrupted service for our members. The less time we spend tracking down a supplier's representatives for answers, the more time we can allocate toward more crucial tasks - such as cross selling, marketing to new prospects, consulting with members, developing strategic plans, or providing technical guidance to our own staff. 5. Take time to revisit. Even in the most stable, long-term relationships, there are typically opportunities to work better. A partner that values good service will help you find these opportunities and guide you in taking advantage of them. Consider asking your technology suppliers to conduct a system audit that identifies ways to maximize your system use, in order to improve efficiencies, reduce costs, or speed processes. You may be surprised to find there are ways to do more-and to achieve these goals-with the systems you already have in place. That's precisely what I found when I requested a system review from USERS upon my arrival at Alliance three years ago. 6. Expect service options. Today, fast and accurate phone support in response to a service call is merely a baseline. Just as our members demand different services and delivery vehicles, credit unions should expect a choice of support options. One option growing in popularity is Web-based support, because it is fast, efficient and always available. Our DP manager uses an e-support tool to notify our system supplier about non-critical issues, which allows her to "make the call" anytime, anywhere, at her convenience. It's also a great way for her to track the status of an issue and provide much more supporting detail, such as attaching screen shots, than she could by phone. In addition, your supplier's service options should include proactive intervention and consulting help - allowing your credit union to learn from others' experiences and implement some of the industry's best practices. Redefining service in these terms isn't just a nice idea; it's the only way to maximize the investment in time, budget and other resources you make when you choose a business partner. By adopting the same, high service expectations your members espouse, your credit union will begin to build the kind of long-term, fruitful relationships required to achieve your business goals in the new millennium.