Building Member Loyalty by Any Means Necessary
There are lots of ways for credit unions to go about improving member experiences, growing member referrals and increasing their average number of products per member. From launching staff training programs to utilizing analytics technology, strategies differ, but the end goals are the same: Build member loyalty, and ultimately, spur growth.
Many CUs offer points-based member loyalty programs, which allow members to earn points for completing various activities, such as using a debit card or attending a financial workshop, and spend them on perks such as lowered loan rates. For example, the PlusPoints Loyalty Program at A+ FCU, an $877 million CU based in Austin, Texas, has led to an average of four products per member, excluding indirect members, Vice President of Marketing Stan Cowan shared.
The technology has also allowed 3Rivers FCU to pinpoint engaged members and sort them by demographic. “We can segment members into groups–by age, income, preferred transaction and customer duration–and obtain the percentage of engaged members in each group,” Levendoski said. “We then look at the qualitative information within each group to identify what will have the quickest impact, then come up with a game plan that will increase the likelihood for less engaged customers to become strong proponents.”
Added Chris Cottle, executive vice president of marketing and products for Allegiance, “The credit union business is all about relationships. So, retaining and satisfying members, improving member services and continually creating and enhancing member value is critical.”