Credit unions don’t sell loans or accounts. They sell experiences.
That’s why success hinges on delivering the best experience possible, Andrew Davis, CEO of Monumental Shift, told attendees of CU Direct Corp.’s Drive15 conference in Las Vegas.
“A great experience can drive higher margins and create higher business value,” he said. “If you differentiate in a way no one else does, that’s a big advantage. Experiences last longer” than cost savings.
Creating unforgettable member experiences will help credit unions own the “loyalty loop” that keeps current members coming back to you and drives a steady stream of new business.
Davis offers “four simple secrets” for owning the loyalty loop:
1. Get rich, target a niche. Focus on the niches to differentiate the experience you provide. This can create very loyal members.
“Divide and subdivide your audience, and look for a valuable niche that differentiates you,” he said. “The opportunity for premium business is in the niches. Don’t try to be everything to everyone.”
2. Harness consumer momentum. Consumers derive happiness from wanting, not having, Davis said.
This is why credit unions must create “a sense of longing” within their members. “You don’t sell the loan; you sell the car,” he said. “Think about how to keep them excited about the car.”
3. Heighten anticipation. The more excited people are when they buy your product, the more likely they’ll be to refer you to others.
Davis cites as an example Domino's "Pizza Tracker," which allows patrons to monitor the progress of their pizza as it is made and delivered.
“The pizza isn’t great, but the tracker creates a great experience,” he said. “And it invites me to share the experience. Think about experiences like this that heighten anticipation. What are you doing to heighten members’ experience?”
4. Remove friction. Find ways to make it easier, better, and cheaper for members to do business with you.
“Ask how you can remove friction from your service experience,” Davis said. “Be more than just a credit union.”