The research focused on achieving a number of objectives including gaining a better understanding of the determinants of a member's choice in selecting a financial institution and identifying the determinants in selecting a financial provider for specific products and services such as mortgages, business services and retail investments. Davis also sought to identify the characteristics of a "trusted advisor" and describe why the respective determinants were important to a decision.

"If there was one universal outcome that focus participants consistently described that they want from a financial institution, it is an experience that makes them feel good," Davis said.

That meant members were searching for what Davis has coined the "desired member experience model" of service, convenience, advocacy and credibility. Depending on the age, income and market segment of the focus group participant, that experience has variations with both rational and emotional components, he pointed out.

On the rational side with service, for instance, members related to staff friendliness, individual attention, recognition, having problems solved quickly, rewards for amount and length of their business, staff being able to negotiate certain fees and rates on their own and being responsive to requests. On the advocacy side, members wanted to be assured that their credit union had their best interests at heart, Davis said. That included asking questions to gain an understanding of their situation and explaining things at their level of understanding.

"Members expressed that credit union staff will act with objectivity and impartiality in providing the best products and services for them and will offer competitive rates and fees," Davis said, adding this finding is consistent with 2007 quantitative market research findings by Forrester Research where credit unions ranked the third highest of financial intuitions on advocacy.

Members defined credibility as having a staff that is knowledgeable about their own and competitors' products and services while convenience meant sufficient branch locations and remote access. Davis said the focus group participants did not rate credit unions high on convenience when it came to branch locations. They did score high marks for e-delivery channels and ease of use. Shared branching and ATM networks have gone far in helping the industry catch up to banks, he noted.

"The most significant outcome of the research came from asking focus group participants why each of the rational components was important," Davis found. "Their responses tended to focus on the corresponding affective or feeling dimensions related to each of the rational components."

Participants said great service translated into a feeling "that I am important and that you value me." Convenience was described as important because "if you are convenient, that saves me time and helps me to feel more relaxed and comfortable when I have a million other things to do."

With advocacy, participants felt strongly that a financial institution should "give me a sense that I can trust you and helps me to feel secure." Davis said credibility offered "a feeling of confidence in doing business with you and helps me to feel that I can rely on the information you are providing."

So, what is the bottom line for credit unions based on the research gathered? Davis said it is as simple as providing and delivering an experience that helps members to feel good. That desired member experience can encompass several things and many credit unions are already engaged in the process.

"No doubt some credit unions and staff are demonstrating many of these behaviors today. But most credit unions are positioning themselves on advocacy and/or superior service. Superior service is merely the ante to get in to the game today," Davis said.

Developing a credibility strategy should be a priority as focus group participants indicated that credit unions were deficient here, Davis said. That strategy may range from orchestrating and leveraging word-of-mouth testimonials related to the expertise and professionalism of staff to intense training on products and services and communicating why they are better than the competitors' offerings.

"For many, a visit to a financial institution can be an 'oh, hum' or even an unpleasant consumers experience, especially during times of economic downturn," Davis said. "The more credit unions can turn points of contact into a desirable and valued experience–to help members to feel good–the more likely member relationships and membership itself can increase."

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