CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • COVID-19
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » 4 ways to deepen member relationships
Operations Sales & Service

4 ways to deepen member relationships

Simple ideas for increasing breadth, depth, and retention of existing banking relationships.

July 31, 2018
One Comment
SOW

Increasing member share of wallet--the amount of business a member does with your credit union versus banks or other financial services companies--is a constant battle.

In the CUNA Councils webinar “The Alchemy of Increasing Member Share of Wallet,” Michael Shallanberger, executive vice president & director of consulting services, Schneider Sales Management, offers four simple ideas for increasing breadth, depth, and retention of existing member relationships.

1. Re-board single service or low service households.

First, ask your members in face-to-face conversations or focus groups, “Why don’t you do more of your business with us?”

From there, your initial focus should be to sell them more of what they already use. Then, sell “most like” products.

And when the relationship deepens, that is when you can explore more products beyond the member’s initial reason for doing business with you.

2. Convert indirect loan members to “full-fledged” members.

Members generally only care about their new vehicle. It is difficult to convert these indirect relationships into full-fledged members.

“It can be done, but there is some work involved,” he says.

The conversion often takes three to four contacts during the first 90 to 120 days of your indirect relationship.

The first call needs to review the loan details and thank the member. You should also seek to provide relevant added value, Shallanberger says.

You can try auto maintenance discounts, travel discounts or offers, car washes or detailing coupon book, or rate discounts for use of auto pay on the loan.

On the second call, you want to earn the right to continue talking to them by saving them money through refinancing or by other means, he says.

“If you can do something to put more money in their pocket, they’re going to change the way they think about you,” Shallanberger says.

The third call should be about switching the member to a deposit relationship. Activate a savings or member account and then target checking accounts, he advises.

3. Consolidate other relationships.

Focus on winning the member’s next financial decision, instead of getting them to switch financial institutions right away.

If you can collect a couple of wins in a row, you’re much more likely to consolidate the relationship in the future, he says.

Have your front-line employees stress:

  • You can protect the member against fraud and identity theft if they have all their business with you.

  • They could be losing every year by having their business spread around through extra fees, lost interest, and wasted time on banking.

“If we can get our front-line folks talking like this, it is going to lead to the conversations that are going to take us to more consolidation,” says Shallanberger.

4. Win future business.

Life moments, such as going to college, marriage, buying a home, or retirement, create the best sales opportunities.

Profile your members for upcoming life changes and then provide them relevant offers at the right time, he says.

The first business or person who has the conversation with a member about a new need generally wins the business, he says.

“If we are not the first ones talking to them, there is a good chance we're going to lose, even if our product is better,” Shallanberger says.

KEYWORDS auto loans credit union share of wallet

Post a comment to this article

Report Abusive Comment

Credit Union Magazine - Spring 2021

Spring 2021

Credit Union Magazine’s Spring 2021 edition features CUNA's 2021 advocacy agenda, strategic planning guidance, and labor market insights.
Digital Edition •  Subscribe

Trending

  • ‘More listening and less attacking’

  • Movement must focus on financial well-being for all

  • Why DEI matters to credit unions

Tweets by CUNA_News

Polls

Who should be the 2021 Credit Union Hero of the Year?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites
  • Privacy Policy

Resources for

  • CUNA Board Members
  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors