Much of our world treats individuals like numbers, with minimal concern for the person behind the digits. Credit unions need to demonstrate value for their members by personalizing engagements and interactions and building deeper connections.
Improving member engagement is necessary to gain and retain market and share of wallet. Engaged members are key to growth, especially considering the complete digital transformation currently underway. Credit unions need to be able to create a seamless banking experience.
With the increasing pressure from new entrants, credit unions need to return to the crux of effective member engagements through deeper relationships with members.
A Gallup study also found that the emotional connection is what keeps customers coming back, with fully engaged customers netting an incremental 23% revenue.
Measuring engagement goes beyond a simple tally of how often a member logs into a mobile app, calls into the call center, or visits a branch. Financial institutions need to be able to connect each of these touchpoints across all channels to begin painting a picture of how an individual behaves.
Collecting these data points will allow you to segment member bases to understand what is driving valuable, revenue-driving behaviors, predict future actions, and help with operational execution.
Your members have preferred channels, which we call ‘channels of comfort,’ that vary from individual to individual and can change based on the query they are trying to resolve. These channels include mobile apps, call center support, social media, ATMs, phone appointments, video conferences, and face-to-face meetings, with most individuals using between three and four.
Engaged customers spend more money and are more likely to stay with their financial institution. Thirty-eight percent of respondents to a recent survey wanted a personal relationship with their financial institution but only had a digital one, or vice versa, which resulted in them being less likely to fully engage with their financial institution by 47%, compared to those whose preferences were being met.
Coconut Software commissioned several studies to better understand how customers want to engage with financial institutions. Our research found that customers and prospects want to be met somewhere in the middle of the digital and brick-and-mortar continuum.
Match the level of support you provide to the level of complexity for the request (and weigh it against the cost).
Why does humanizing banking work? Because it makes your members feel appreciated, respected, and valued—necessary ingredients for loyalty and increased share of wallet.
With direct and measurable results on engagement leading to loyalty and share of wallet, any credit union looking to gain and retain customers in a swiftly changing environment must evaluate whether they have the technology stack and internal resources to support the humanizing of their member engagement experience.
KATHERINE REGNIER is CEO and founder of Coconut Software.