CHICAGO — Six credit union have come together to create a CUSO to help measure, detect and take advantage of member loyalty.
For years, the $2.1 billion Addison Avenue FCU relied on quarterly phone surveys to assess just how loyal its members really were, but the measurement tool didn't provide a firm enough handle on where the loyalty drivers were coming from, said Robin Boyle, brand management and marketing communications manager.
Addison Avenue is one of six credit unions that linked up in March to form Member Loyalty Group LLC, a new CUSO that will use the Satmetrix-created Net Promoter Score in conjunction with member data provided by credit unions to determine ways to improve member service in every area of the organization.
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"Our goal is to embed the organization," Boyle said. "We want to identify the pain points and prioritize. As opposed to us sitting in a room and strategizing, we really want to know what the members are thinking."
In gauging member allegiance, the disconnect may occur with measuring whether members are truly satisfied and what are the factors that drive their loyalty to their credit union. Addison Avenue has been using the Net Promoter Score for nearly four years. Boyle said the credit union is waiting on the final data to understand loyalty drivers and if members are indeed referring the credit union to others.
In addition to Addison Avenue, the other credit unions in the CUSO are America First CU, Baxter CU, BECU, Educators CU and San Francisco Fire CU.
The Bank of Americas and Citibanks of the world are putting more resources into creating better customer service experiences, said Michelle Bloedorn, executive director of Member Loyalty Group. Financial metrics can't be the only measure of success anymore, she suggested, adding that member loyalty is what make credit unions grow.
"As credit unions, we're much better able to create that great member experience because we're smaller and quicker to move," Bloedorn said. "We need to keep member loyalty front and center."
The Filene Research Institute and Satmetrix produced a study of 17 credit unions that are using the Net Promoter Score. In its A Fresh Approach to Measuring Member Loyalty publication released in early April, the respondents were put into three categories: promoters (described as "loyal enthusiasts"), passives ("satisfied but unenthusiastic customers who are vulnerable to competitive offerings"), and detractors (unhappy customers "who can damage your brand and impede growth through negative word of mouth.")
The data showed that credit unions scored an overall NPS of 54.3%, with 67.7% promoters and 13.4% detractors. Credit union individual NPS ranged from a high of 79.1% to a low of 19.6%, and credit union overall NPS greatly exceeded those of other retail banking outlets, according to the data. Promoters were likely to be individuals who regard the credit union as their primary financial services provider, have good overall experience with their credit union and are long-time members.
"We're measuring a number of different relationships–online, at the physical branch and contact centers," Bloedorn said. "A lot of people have a survey but that's not what it's about. It's about an internal change."
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