Credit unions were created withthe idea that people should help people. For that reason, personaltouch and interaction is a key differentiator for credit unionswhen compared to banks. Some might fear that as online and mobilebanking become more and more popular, the personalized nature ofcredit union business will disappear. However, quite the oppositeis true.

When used correctly, active analytics programs provide theopportunity to customize those interactions and increase therelationship – personalizing things to create the same level ofindividualized attention customers receive at a branch office.

Active Analytics Deepen MemberRelationships

Using customer data to aggregate information and gain insightinto member behavior may seem contradictory to the collective,personal character of credit union business. But when you considerthe benefits active analytics bring to a credit union as well asits members, you can see how easily the positives fit with thecredit union ethos.

Active analytics allows a credit union to:

• More effectively target customers – You can find the memberswho most need a service or product you can provide and reach out tothem at the most effective time.
• Develop deeper, more personal relationships with members – Bycustomizing the way a member relates to you, you increase loyaltyand create a more satisfied member.
• Better compete against large banks – Analytics programs allowyou to tap into new revenue streams while also increasing loyaltyamong members, making your credit union a stronger competitoragainst larger banks.

The power of this insight is that the data can predict customerbehavior, allowing you to increase the effectiveness andpersonalization of marketing offers to members – and present thoseoffers in a manner and at a time when they are most likely to usethem.

Here are three areas where active analytics can be mosteffective:

• Segmentation driven marketing – By tracking and measuringimportant indicators in a member's life – age, gender, maritalstatus, income and many more – you can segment members into easilytargeted groups. From there, you can develop targeted marketingcampaigns that create relevant, personalized experiences thatimprove customer engagement and provide cross-sellingopportunities.

• Merchant offers – Based on transaction data and other relevantinformation, you can provide personalized, yet anonymous,incentives that compel customers to make purchases, thus drivingtransaction volume and revenue.

• Price optimization – Using collected data, financialinstitutions can review pricing strategies and optimize them toaccount for when, where and how customers use a service or bankcredit or debit card in order to improve profitability.

At its most basic level, a merchant-funded offer could encouragea member to use his or her credit union-issued credit or debit cardmore often by rewarding him or her with points or other rewards tostores, hotels or things of interest.

Analytics can go even farther, tracking where and how yourmembers use their cards, access your online or mobile bankingapplication and more in order to determine their habits and predicttheir financial needs. For example, members buying new baby itemswith their card could be targeted for home and car loan offers asthey may need more space for their growing family.

How Members Benefit

In addition to personalized, timely offers that encourage themto take advantage of opportunities that directly pertain to themand their interests, your members can benefit from a greater bondwith you. Studies have shown that customers place a large amount oftrust in their financial institutions; personalized experiences canfurther develop that trust and loyalty.

In addition, because opportunities can be made available acrossplatforms, members benefit from the convenience and the ability toreceive and use offers and rewards when and where they see fit.

Where to Start

Most financial institutions want to be more data-driven in theirdecision making, but many struggle with where to start and how toact on the data they collect. And, until recently, deep analyticalreview of customers was available only in retail environments.

While there are numerous data tracking and marketing companiesavailable to provide you insight into a member's behavior andlifestyle, it's important that a credit union finds a provider whounderstands it and the unique nature of credit union business.

In many cases, your technology provider can help you translatedata already collected into actionable insight. In addition, ifyour provider's scope is broad enough, it can turn ideas from otherbusinesses' analytics programs into plans you can use as well.

Ultimately, active analytics is key to improved, dynamicmarketing campaigns that better serve your members, while alsotapping into new revenue streams through customer segmentation,optimized pricing and cross-selling opportunities that delivertargeted, relevant and timely offers across multiple deliverychannels.

BobLegters is senior vice president of payment products atFIS in Jacksonville,Fla.