WASHINGTON (11/20/15)--A new Gallup study suggests credit unions have an opportunity to leverage their stellar reputation for member service to engage consumers in the mortgage-buying process--and nurture future growth in the process.
Getting a mortgage can be a stressful and unhappy experience for consumers, Gallup reported. Only about one in five recent mortgage buyers (22%) were fully engaged with their mortgage provider, Gallup found. That compared with 29% of customers who are fully engaged with their investment firm, 30% with their primary financial institution and 32% with their home, auto or life insurance provider.
When consumers need a mortgage, they're more likely to turn to their main credit union or bank if they are fully engaged with the organization. Among consumers with a mortgage, 39% of those who were fully engaged used that institution for their mortgage, compared with only 25% of actively disengaged customers, according to Gallup's 2014 Retail Banking Panel Study.
Engagement is also a good indicator for future growth. Fully engaged mortgage borrowers are more than twice as likely to return to the same bank or credit union for another mortgage when the need arises. Further, one in five customers reported that they chose their mortgage provider based on a recommendation from a friend, family member or colleague. However, organizations must earn these endorsements.
When asked how likely they were to recommend their mortgage provider to a friend or family member, 93% of fully engaged customers said they were extremely likely, compared with only 3% of actively disengaged customers who said the same.
Overall, credit unions have built a reputation for excellent member service. In August, Consumer Reports, reported credit unions as an industry that offers outstanding members service nationwide.
Other respected business rankings have put credit union on top for trust and service as well--the American Customer Satisfaction Index, Harris Poll, Temkin Group and Chicago Booth/Kellogg School Financial Trust Index among them.