Loyal members provide a lot of the momentum that moves your credit union forward. They’re the ones most likely to turn to their credit unions first when they need loans. They’ll tweet or call their congressional representatives to support credit union advocacy efforts. They’ll encourage family members, friends, and co-workers to join a credit union. They’re your credit union’s cheerleaders.
Loyal members understand credit unions’ cooperative business model. They wouldn’t even consider taking their business to any other financial institution.
Marketers know that any effort aimed at building member loyalty will trump any other marketing strategy.
To measure loyalty in CUNA’s 2014-2015 National Member and Nonmember Survey, researchers used the Net Promoter® model originally developed by Satmetrix®.
This model asks consumers a key question: “How likely would you be to recommend your credit union (or bank) to a friend, family member, or co-worker?” Respondents mark answers on a scale from 1 (“not at all likely”) to 10 (“extremely likely”).
The scores are then categorized as follows:
• Promoters have scores of 9 to 10. They are your loyal members who will continue to do business with your credit union and recommend it to others, thus fueling growth.
• Passives have scores of 7 to 8. They’re satisfied members, but they can be swayed by competitive offerings elsewhere.
• Detractors score 0 to 6. They’re indifferent or unhappy members who can damage your brand and impede growth through negative word-of-mouth.
The Net Promoter Score is the difference between the percentages of promoters and detractors.
Sixty percent of members are “promoters,” who can also be described as “highly loyal” members (“CU Net Promoter Scores”). This proportion has climbed steadily upward since previous surveys, while the detractors have declined, leading to rising Net Promoter Scores, from 32% in 2011 to 42% in 2014.
“Most noteworthy is that credit unions’ 60% promoter component far outpaces the 38% promoter component among nonmembers who are bank customers,” says Jon Haller, CUNA’s director of corporate and market research.
Similarly, banks have 30% detractors and credit unions have only 18%. This contributes to a wide gap in Net Promoter Scores between banks and credit unions—8% for banks and 42% for credit unions.
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