To that end, Filene Research Institute has launched a new advisory program called “Member Journey,” which aims to help credit unions identify and eliminate barriers to key credit union services.
Specifically, the program helps credit unions simplify the process for obtaining a new membership, opening a new account, applying for a loan or resolving an issue.
“Credit unions generally enjoy strong market share in consumer lending, especially with auto loans, but mortgage lending lags at around 7% market share,” said Jenny Darroch, Drucker School of Management professor and author of a recent Filene research report on the subject. “One reason for this difference in market share might be a more streamlined process, therefore, a better member experience.”
Backing this idea, the Harvard Business Review recently published research that unearthed a strong correlation between low customer effort and loyalty.
Constance Anderson, president of MemberXP, which will collaborate with Filene to deliver Member Journey, hopes the new program will not only add to that body of research, but also help foster change within the movement.
“The first step is to collect data to ensure we understand member and prospective member needs,” Anderson said. “But data is a dead end on the road to an exceptional member journey unless you have the analytics and tools to drive improvement.”
Within the program, advisers will walk credit unions through a customizable action plan to implement changes that will lead to ease of use, and, in turn, to an improved member experience and a healthier member loyalty.
“As people have simpler and more engaging experiences with organizations like Uber and Amazon, their demand to save time and effort will grow,” said Tansley Stearns, Filene chief impact officer. “Credit unions must respond to this new market demand to really differentiate themselves.”