Credit unions provide outstanding service, earn members’ trust, and offer better rates than other financial institutions.
But they struggle to meet members’ digital expectations, which are often formed by nonfinancial organizations, such as Uber and Netflix.
“The industry is under a constant threat,” says Kirk Drake, CEO of Ongoing Operations, who addressed Disruption 17 by CU Water Cooler Tuesday in Madison, Wis. “And we’re stuck in this service-first model.”
Drake says credit unions should remember to “DREAM” when crafting a plan to meet members’ digital expectations. That means:
Differentiate with data. Most credit unions use data, but Drake says they aren’t using it to drive member engagement.
“The answer is in the data,” Drake says. “If you look at your members and see, for example, they’re using PayPal, you may have to figure out how to get that business.”
Repeat and reinforce. Credit unions follow a certain processes to enroll members in various products and services. Know the processes and make sure it’s repeatable and that it creates a memorable member experience.
Then reinforce that experience through positive reactions on social media.
Excite and educate. Find avenues within the credit union that make members excited. In other words, over-deliver on some promise, Drake says.
Also, remember that online resources allow members to become experts. Provide valuable content, whether it’s a blog post, video, or FAQ.
“Education equals trust which equals sales,” Drake says. “Through content, you create engagement with the member. Then they’re willing to engage in a trusting relationship with your credit union.”
Automate. Track what members ask about when they talk to call center representatives. Find ways to track the questions and concerns members pose to internet search engines that ultimately lead them to the credit union’s website.
This is another way to build trust with members.
Motivate. If you want members to feel the difference between a credit union and bank, do something unique, whether it’s providing a patronage dividend, waiving fees, or providing the option to skip a loan payment.
“That motivation is a key piece,” Drake says.
“I don’t think this is an expensive proposition at all,” Drake says. “This is more of a mindset, long-term effort. And if you do that, it doesn’t cost anything.”