Move over, Net Promoter Score (NPS). There’s a new way to identify, quantify, and leverage the most important connections between a credit union and its members.
NPS has been widely used to measure brand loyalty. It relies on the answer to a single question: “How likely are you to recommend this company or product to your friends, family, or business associates?”
The simplicity of NPS is a strength, but it also poses as its biggest weakness.
To understand why NPS scores rise and fall, brand attribute questions often are added to assess things like convenient hours, speed of transactions, nearby branches, etc.
Those scores can be misleading because each attribute is assumed to be equal in importance, which we know is not true.
NPS also emphasizes rational versus emotional attributes, which tell only part of the story—usually the least important part.
Members aren’t looking for a better credit union; they’re looking for a better banking experience at their credit union. They want a financial partner that provides an experience as good as or better than what they now routinely expect from top brands like Amazon, JetBlue, and Apple.
If credit unions want to excel, they need to think outside their own industry and adopt best practices from the world’s best brands.
Great brands don’t become so by accident. They become great by making an emotional connection with their customers.
According to a Harvard Business Review article, “The New Science of Customer Emotions,” emotionally connected customers of banking products are 35% more valuable to an organization than those who are highly satisfied but not fully connected.
To help credit unions find, quantify, and leverage a unique emotional connection, we created the Emotional Brand Advantage™ (EBA) Analysis. The output of an EBA Analysis is a decision matrix of how to manage those attributes most important to your members and your success.
The benefit of an EBA Analysis versus NPS is that it quantifies members’ likelihood to recommend based on both rational and emotional attributes. From there, it identifies in priority order, which attributes are most important to achieve desired business goals.
As such, it provides highly actionable, fact-based insights that are often missing from NPS. With EBA, credit unions can allocate their time, money, and management attention to areas that need improvement rather than continue to put money toward over performing services that members consider to be “table stakes.”
Some of America’s largest credit unions are now using EBA Analysis to fill the gaps in their NPS reports, member satisfaction studies, and more. Our EBA Analysis allows credit unions to reveal, quantify, and prioritize insights about their business that even years of good market research hadn’t permitted them to see before.
Those new insights then provide the basis to better connect with members, employees, and prospective members.
The immediate impact of EBA Analysis has included new member communications, revised advertising claims, new taglines, refined brand positioning, enhanced employee training, and even a change in the name and identity of a credit union.
The longer-term impact has been an increase in membership, loyalty, and share of wallet.
We believe every credit union has an emotional brand advantage just waiting to be unleashed. With EBA Analysis, credit unions can stay closer to their members and ahead of their competition, and realize the full potential of their brands.
GLENN C. VAN DEUSEN is president of Van Deusen & Levitt Associates Inc.