A CUSO which helps credit unions strengthen loyalty among their members reported a recent study showed that credit unions are beating banks in building deeper loyalty among their members or customers.
Member Loyalty Group LLC, a Chicago CUSO that specializes in market research, reported that CUs have an average “Net Promoter” score of 58% while banks have a “Net Promoter” score of only 18%.
Research has shown members or customers who are “promoters” stay longer with their financial institutions, buy more products, refer more new customers and cost less to serve, Member Loyalty Group said.
Additionally, other research has also found that financial institution loyalty leaders enjoy a growth rate that is 10% higher and a cost of funds 80 basis points lower than those that are considered price leaders, the company said.
“The findings really validate what we in the credit union industry have seen time and time again, that members are significantly more loyal to their credit unions than bank customers are to their banks – and that translates to considerable, tangible business benefits," said Michelle Bloedorn, CEO of Member Loyalty Group.