With rapid shifts to on-demand and digital experiences across all aspects of our lives, it’s no surprise members expect the same level of convenience from their local credit union. Member expectations are evolving alongside technology, which means new classes of competitors are emerging. Now, it’s more important than ever for credit unions to prioritize building more engaging and profitable member relationships.
The advantage? Credit unions know their members best.
With an industry philosophy that includes financial wellbeing for all, digital innovation can open a new world of opportunity that allows credit unions to expand their reach, design targeted and personalized experiences that promote members’ unique needs, and drive growth.
Do You Have Access To Your Data?
“Nearly 80% of marketing leaders say data, analytics, and insights are very important to winning and retaining customers,” according to a CMO Council study. “Practically every marketer says direct access to customer data provides them with a competitive advantage.”
This includes marketers at credit unions.
Credit unions have greater access to member information than most other entities. You can not only see income, savings, investment, and transaction details but also arrive at a good understanding of an individual based on shopping preferences and behavior trends. The question is: How do you effectively collect this information and what do you do with it once you’ve captured it?
Credit unions faces a few unique challenges when it comes to using member data, including:
- Data silos. Member data is often siloed in separate business units or systems, making it difficult to access.
- Unstructured/unusable data. Many credit unions collect enormous amounts of unstructured data they never access — data that’s unusable because it’s difficult to process and analyze.
- Limited reporting. Reporting can be challenging to access, making it difficult to determine campaign impact and ROI.
Amplifying Business Intelligence With Marketing Automation
To address these challenges, an increasing number of organizations are turning to advanced analytics, data intelligence, and digital automation to gain deeper insight into the customer journey — harvesting more actionable insights from their data and empowering decision-makers.
Business intelligence tools provide credit unions with opportunities to elevate their business by presenting interactive information for intuitive decision-making. Credit unions that use dynamic analytics alongside marketing automation can:
- Use data faster and more effectively. Layering business intelligence on top of powerful marketing automation software allows credit unions to take timely, member-centric action.
- Better understand and communicate with members. The combination of tools also enables credit unions to analyze data so they can better understand and communicate with members in ways aligned with their unique needs.
- Offer personalized products and services. Tapping into analytic and insight tools to personalize and improve the member experience can boost loyalty and increase revenue in both the short and long term.
Meeting Members Where They Are
Before this age of digital transformation, when members primarily interacted inside local branches, relevancy was more straightforward. Members were exposed to credit union brands and products as they went about their day. But in today’s digital age, the meaning of a branch and the way we move through our day — exposing ourselves to brands, products, and services — has changed. Keeping up with modern member expectations now requires a data-driven, digitally powered strategy that meets members where they are in their financial journey.
Credit unions can use this trend in their favor. It’s an opportunity to connect to members in new ways with timely, relevant, personalized offers that can help meet their unique financial needs. Personalizing each interaction builds trust and strengthens relationships. To tailor the member experience, credit unions can take steps to optimize each of the following areas.
1. Acquire
Whether it’s a new account, loan, or life change — all these moments represent an opportunity to acquire new engagement by offering products or services that align to personal financial goals. One of the fastest ways to lose new business before it’s acquired is digital friction. Nearly half (48%) of consumers say they encountered digital friction when they tried to open an account online. The same percentage say friction caused them to take their business to another financial institution. Making the experience easier and faster is the best way to retain, grow, optimize, and acquire new business.
2. Optimize
Once a person becomes a member, it’s time to turn attention to elevating that relationship — promoting financial wellbeing at every stage of their financial lives. This could take the form of setting up direct deposit and online banking, offering services that help the member build credit or meet their savings goals, or simply making sure they activate and use a debit card. It’s all about building a stronger relationship with the member through meeting their needs.
3. Grow
As a member moves into new life moments, their financial needs will inevitably change. This is an opportunity for credit unions to evolve alongside their members and build on those relationships. That might look like a new mortgage for a first-time homeowner, a home equity line of credit, investment opportunities for a family looking to save for college or retirement, or buying a car. Among consumers who looked to another financial institution, 78% said they would have been willing to buy from their primary financial institution if they’d received a compelling or equivalent offer.
4. Retain
If members believe a credit union has their best interest in mind, they’ll be more likely to consider it their primary financial services provider. They may even let their friends, family members, and colleagues know how happy they’ve been with their experience—building even more interest in the credit union brand. Member retention is an investment, and it’s one that can provide great returns on investment if credit unions take the time to communicate and provide support consistently and effectively. Using data-driven, digital tools opens the door for credit unions to better understand what members need and create efficient, accessible, convenient products and services tailored to each financial situation.
Learn how MeridianLink® is helping our customers gain new insights to drive deeper consumer relationships.