MADISON, Wis. — In February, CUNA Mutual Group completed thetransitioning of credit unions from its old sales and distributionmodel to a new model. The transformation is part of CUNA MutualPresident and CEO Jeff Post's four-pronged approach to improve thecompany's efficiency and responsiveness to credit unions and theirmembers.

At Texas Credit Union League's Annual Meeting, Credit UnionTimes conducted an exclusive interview with Post, CUNA Mutual VicePresident of Sales David Sweitzer and Vice President of PR andCommunications Jim Buchheim to find out exactly what changes havebeen made so far to the sales and distribution model, particularlyas they relate to small credit unions.

Prior to Post's arrival at CUNA Mutual in September 2005, creditunions had several common complaints about the company: theyperceived CUNA Mutual to have a one-size-fits-all product mix andfelt the company lacked a clear, reliable, single point of contactfor sales. Product implementation and follow-through wereinconsistent, and too often CUNA Mutual didn't thoroughlyunderstand credit unions' business needs and objectives.

In 2006, as part of the company's three-year transformationeffort, CUNA Mutual launched an initiative to optimize itsdistribution experience. Based on feedback from 100 credit unionsand all employees, the distribution experience CUNA Mutual nowseeks to create includes:

oSimplified access–a single point of contact for ALL creditunions with enhanced remote communication capabilities;

oMore decisions made at the point of customer contact;

oSpecialized “best of class” industry expertise; and

oConsistent and reliable post-sale implementation andservice.

What has changed? CUNA Mutual's entire business-to-businesssales model was overhauled, including structure, roles, processes,and technology, built to credit union specifications.

“Credit unions told us they expect proactive salesrepresentatives, faster, more efficient response times, and easyaccess to industry expertise,” said Post.

The company started restructuring by consolidating its number ofcall centers from 38 to three, a move that offers not only economyof scale but also faster, more consistent customer communicationbecause of the closer proximity of employees.

Eighty employees have been tasked with focusing exclusively onthe challenges of small to mid-size credit unions. What does CMGconsider a “small” credit union?

“We've given a lot of thought to that,” Sweitzer said, “and theanswer is any credit union that is resource challenged.” TheSelect

CUNA Mutual identifies these small to mid-size credit unions astheir “Select” segment, a group encompassing approximately 6,500 ofthe 8,000 credit unions served by the company. Larger credit unionsare assigned to CUNA Mutual's Regional and National Accountssegments.

“Accounts previously were organized on a purely geographicbasis. Now representatives serve credit unions of similar size withsimilar problems,” Sweitzer said. “What was happening was arepresentative was calling on a $50 million credit union in themorning and a $500 million credit union in the afternoon. Theirneeds are very different. And small credit unions don't have timeto meet face-to-face with our representatives. We now assist themprimarily through a virtual model, which delivers greater speed andefficiency.”

Under the previous model, Post said 70% of a salesrepresentative's role was spent literally on the road. With thatmuch travel, representatives were only able to visit small creditunions about once a year, and not necessarily on a schedule thatwas convenient for the credit union. The virtual model, which usesan Internet-based phone system, allows representatives to spendtime more productively, addressing needs and positioning productsand services. “We're exchanging windshield time for credit unioncustomer service time,” he said.

Each credit union now has a single point of contact ultimatelyresponsible for ensuring a credit union gets the assistance itneeds. “Callers get a live body right away,” Sweitzer said. “CMGrepresentatives have an online manual at their fingertips–withaccess to 10-plus operational systems, the Internet and theIntranet. Representatives can provide immediate answers toquestions or pull someone else into the conversation to help solvea problem.”

Most sales executives have 30% fewer accounts now than under theold model. CUNA Mutual also has added 12 account consultants forthe Select segment to handle service-related calls.

The company has placed great emphasis on building a sales forcethat has the skills and experience to answer credit unionquestions. In addition to individuals with “significant CUNA Mutualexperience,” many representatives are certified public accountantsor carry MBA degrees. Possibly the most welcomed change has beenthe addition of former credit union CEOs to CMG's sales executiveroster.

“Credit unions appreciate talking to someone who understandstheir business,” Post said.

Technology is also helping CUNA Mutual improve the quality ofinteractions with customers. Their new voice-over IP systemfacilitates coaching and development of sales staff.Representatives are evaluated and incentivized based on 36 customerservice metrics. Phone calls can be replayed to target improvementopportunities. The system also incorporates state-of-the-art voiceanalytics that warn representatives when frustration beginscreeping into a customer's voice.

Sweitzer and Post acknowledge that the company has not yetreached their targeted efficiency. At one-third of the way throughthe three-year transformation effort, Post said “pit stop surveys”indicate customers believe the organization is about 30% down theroad in achieving its improvement goals. “That's about where weshould be,” he said. “Interestingly, our employees said the samething. Their assessment was completely in step with our customers.If our employees believed we were closer to reaching our goal thanour customers did, we would be in trouble.” Buchheim said theprocess is analogous to eating an elephant. “How do you eat anelephant? One bite at a time. In our old model where we only talkedto some Select segment credit unions once or twice a year, we wouldrun the risk of either leaving things off the table or trying to dotoo much.

“Now, we have units dedicated to each segment, we have morestaff focused on our Select credit union segment, and by replacingwindshield time with credit union time, we have more people withmore time proactively communicating with credit unions, respondingto credit union questions or issues, and delivering the informationand tools credit unions need to make decisions about CUNA Mutualproducts.”

With more than 25% of CUNA Mutual's overall revenue coming fromthe Select segment, officials say they are committed to smallcredit unions. They believe improved service, execution, andimplementation will not only help them retain business, but alsoprovide growth opportunities. –[email protected]