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Tag: member experience (Page 1 of 26)

Spreading Savings Stories At Your Credit Union

Originally published on CUInsight.com

Why would someone want to join your credit union? Or keep their relationship over switching to a seamless app-based fintech (or snazzy big bank) platform?

It’s easy to talk about the mission, how members are the owners, and that the institution is not-for-profit. But these tell people nothing useful, nor do they give them a tangible reason to bank there. People think they’re making decisions rationally, but they’re really acting on emotion.

Between my business partner (who’s also my dad) and myself, we’ve dedicated over half a century to providing for credit unions. I don’t share that for accolades (applaud if you’d like), just so you can understand the perspective from which I approach this topic.

Most credit union marketing goes in one of two directions:

  1. Explains what the credit union is, making the assumption this is sufficient to convince someone to want to bank there
  2. Shares what your institution offers, and sometimes even how you do so

The first has no direct bearing on a person’s financial life (yes, I get that it’s what enables lower fees and whatnot, but that’s all abstract and intangible to your target audience). The second is what marketers call “features and benefits”.

There’s no emotional connection to either. Both assume a rational decision-making process, which we know now doesn’t exist.

“Hold up, Joe! We’re a credit union, and our mission is always about the why. We strive to help people create stronger financial lives.” I hear you, truly. But read that again. Where is the emotion focused? It’s not to the individual you’re trying to attract, but rather a “big picture” that’s hard to pin down.

Dollars and Sense

Vegetable Pizza
Well, great. Now I’m hungry.

Think of fast food and restaurant commercials. Do they spend their limited time talking about the mission of affordably satiating everyone’s hunger? No, they feature macro shots of their food items, make you hungry, and probably end with a “by the way, check out all you get for just this much money!”.

Bonus points for implying you’ll have a better social life if you choose to eat there.

So how can your credit union use this successful strategy? Focus on your members’ stories! (Chime does this ridiculously well with buyer personas.)

Our partnership with protection product providers as well as being credit union members ourselves gives us access to some compelling stories…and by stories, I mean, “big dollar numbers that will catch people’s attention”. 

Regularly, I learn about paid GAP claims of $8k, $10k, even $14,000, and more! For the average American, that kind of avoided out-of-pocket expense can be life-changing. Surely worth including in marketing efforts, don’t you think?

Our own vehicle enjoys a bit too much vacation time in the service center. Using a VSC policy purchased at a local credit union, paid warranty claims have exceeded $6000 so far. Yet when we reach out to the institution to encourage promoting their impact, it’s been radio silence.

Talking about your mission is one thing. Showing examples of how that mission of financial empowerment saves members thousands (people like you, dear viewer!) connects emotionally. Plus, choosing to save money sounds like pretty rational decision-making to me.

Make Your Credit Union An Easy Choice

Path Choice
Help more members find the rainbow.

Insurance commercials focus on the ease of filing claims, speed of payment, and how their prices are better than competitors. That’s fine when you already know their products; usually it’s homeowners insurance (basically impossible to get here in Florida) and auto insurance.

Do your members (and prospective ones) even know the insurance products you offer?

And how often is their first and last response to them, “I decline”, on the loan documents?

Instead of talking about how “credit unions are different”, share the stories that will catch people’s attention:

  • How Tasha avoided an out-of-pocket $8,400 expense after her car was totaled (with CU’s GAP)
  • When Steve could get his $3,500 car repair completed for only the $150 deductible (with CU’s VSC)
  • That time when Andy unexpectedly lost his job, but had his $545 monthly loan payment waived for 4 months, when he found another position, relieving the financial stress (with CU’s payment protection)

If your marketing simply said, “our credit union offers GAP, Payment Protection, and VSC, and they’re cheaper than the dealer”, would it generate an emotional connection?

Use your data. Surface the real stories. If you can get the members to tell them, even better.

Sure beats promoting that members get a vote in your operations.

6 Credit Union Lessons From My Favorite Theme Parks

Originally published on CUInsight.com

Theme parks are awesome, especially Disney and Universal. Combined, I’ve been to both more times than I can count…literally. Besides making me a de facto guest services agent for other visitors, I also study how they operate. Why yes, happy to point you to the nearest Hidden Mickeys (it’s not my first mention)!

Take Universal, for example. It’s owned by Comcast, yes, the cable company with a consistently lowest-rated customer service experience. Yet at the theme parks, you would never guess they’re affiliated (besides the ample NBC and Peacock branding).

At their best, it’s a “Disney-magic” equivalent. At their worst, it’s still light-years better than the smoothest interaction you’ve had discussing your internet connection.

What has their customer relations training understood that we can adopt into our credit union world, admittedly a very-different industry? (Disney literally has a business institute to train companies in their operating style, so there’s value here)

Learn from my time at these bastions of customer service excellence with 6 lessons:

1. Not every attraction is for every person, but everyone is welcome

Joe at Universal Studios Entrance
Trust me, a Jedi I am.

At Magic Kingdom, you can expect lots of kid-focused rides and experiences. Spending time with Winnie the Pooh in the Hundred Acre Wood is wonderful, but maybe you want thrills and spills! Well, the trio of mountains has you covered (Space, Thunder, and Splash).

Even though these are quite different, Disney makes sure you can bring your kids to the “wildest ride in the wilderness”. And if they happen to be too small to safely ride, there’s a child swap area to let everyone take the train through Tumbleweed.

No matter your preferences, age, or abilities, both Disney and Universal take care to ensure everyone is welcome (and I can speak from experience that they fix issues when made aware).

Your credit union can (and should) have a target persona, but it’s also essential to design your services and interactions to fit a wide range of needs, life stages, and financial situations.

Most credit unions already do this to some extent (it’s what they’re built on), but ensure it’s consciously done everywhere. Make everyone feel welcome, no matter their credit score or checking balance. Recognize that different products may serve members in specific ways.

2. Protection (from sun, rain, or financial uncertainty) is important

Joe in Poncho at EPCOT - Disney
“Don’t rain on my parade!”

My “home” theme parks are in Central Florida. Most of the year, the sun is unrelenting. At the same time, it can rain on any given day, too. Between burning in the heat or getting drenched, you need protection. Both parks provide ice water for free, because dehydration is no joke.

For the rest, bring (or buy) the protection necessary. From sunscreen to ponchos, they’ve got you covered if the need arises.

The same goes with financial uncertainty. It seems like the “new normal” we have is shifting from one type of uncertainty to another. So ensure all members can access (and understand) your range of protection products.

Too often, I have meetings with credit unions where we go off-topic and they start sharing some interesting financial empowerment tools available. Very cool, but why are they so well hidden, and if I’m just learning about them now, how many members are aware?

When things go weird (which is all the time lately), be sure to roll out those poncho, umbrella, and sunscreen stands.

3. Moments of magic are where loyalty begins

Joe and Spaceship Earth - EPCOT - Disney
#NoFilter

“Disney magic” is so oft-repeated, it’s almost a cliche. Yet their cast members are encouraged to deliver these experiences when possible. Recently, a team member at Universal made their own kind of magic for my mom and I. What they did wasn’t required, requested, nor expected.

We left the park that evening excited from our experience, improved by one small gesture. And, silly as it is, I have an improved perception of Universal because of it.

How can your MSRs deliver moments of magic to members? Solving problems when they arise is essential, but expand that brainstorming to bring smiles to those already satisfied. There’s a huge difference between, “yeah, they’re fine” and “wow, listen to what they did!”

Loyalty doesn’t just stem from doing things as advertised all the time. Take every opportunity to bring magic into their financial life, from fixing issues with a smile to making the good…great.

4. Queues stink, but if they’re essential, make them interesting

Joe Through Time at Country Bear Jamboree - Magic Kingdom - Disney
Same me. Same place. Different time.

Theme parks have two constants: Everything is expensive and you’ll be waiting in lines. Since your credit union drives financial empowerment, it’s probably not the most expensive choice in town. So let’s look at the latter.

For better or worse, both parks offer ways to reduce time spent on line for attractions, store purchases, and food. Like them, use the mobile tools available to assist members with their questions. Streamline processes to request the least amount of information.

If you’re in a top attraction queue, I can guarantee the line has all sorts of things to grab your attention. That’s probably not an option at your credit union, but if your phone support is overwhelmed, make sure members can save their place and get a call back.

In-branch, observe if you have busier times. When that happens, can you repurpose other staff to address certain member requests instead of having them wait? The Universal Banker has a basis in this concept.

5. It’s easy to get overwhelmed

Joe at Tomorrowland Speedway - Magic Kingdom - Disney
Please do not bump the car ahead of you. We’re very serious.

Theme parks are big, sensory-stimulating places with tons of options. Frankly, even for regulars like me, they can get overwhelming. Do we stop in for this show or set up early for the parade? Wait, then we might not make it over to the new roller coaster!

Not to mention remembering to find someplace to eat. Oh good, you brought snack bars.

Your credit union has a lot of products. Unlike us, the typical member isn’t immersed in it day-to-day. So what we consider a normal span of offerings might be overwhelming for them.

Design your website, app, and train your team to recognize this fact. Theme parks have paper and digital maps that break down everything you can do during your day. Consider emulating this approach with your own services.

Seriously, is there a single place I am able to see every way you can help members? (Our company has a PDF guide to our Mission-Focused Toolkit that drives awareness and interest.)

I guarantee you have members right now who don’t know about products that can improve their life. How can you give them a map to the nearest restroom…I mean, to enhance their financial wellness?

6. If it gets to customer service, you’ve already missed something

Joe Hugging Truffula Tree - Universal Islands of Adventure
Go talk to the tree-hugger.

None of us want to call, chat, or visit guest services. It’s good they’re available, but that I had to go to them means something was missed. My experience or knowledge is lacking in some way that needs fixing.

Why do members reach out to your customer service channels? Could you redesign the site, app, or branch to answer these questions preemptively? Are these account-specific issues?

Did they really need to talk to a live person (or does that open the door to new conversations?)

A good FAQ is fine (though not one I saw recently with over 50 answers), but that’s not where you answer questions, paradoxically. Those are your fallbacks.

The main content should address the pains, opportunities, and common inquiries. Flowery and clever marketing content is a lot of fun, but if you can read/watch it and still have basic questions, there’s room for improvement.

Bringing the (Credit Union) Magic

Joe and Figment During Half Marathon - EPCOT - Disney
“One little spark”

Stop and think about credit unions for a moment. That they exist at all is pretty magical. These member-owned places where you can safely store and borrow money, while also working to grow everyone’s finances for the benefit of the community…pretty cool, right?

Disney loves to call itself “the most magical place on Earth”. But can they help drive community financial empowerment? Ok, maybe through their credit union, Partners FCU. Theme park affiliated or not, credit unions have magic of their own!

How will you bring that magic to your members?

“We all have sparks, imaginations.
That’s how our minds, create creations.
For they can make, our wildest dreams come true.
Those magic sparks, in me and you.”

Figment, One Little Spark

Credit Unions Already Lost. So, How Do They Win?

Originally published in CUInsight.com

Raise your hand if your credit union is a leader in digital offerings. Keep that hand up if your members agree. Finally, hold it just a little longer (you didn’t expect this article to be a literal workout!) if your local community agrees.

Of course, I’m just writing on a page, so my presumption of response is just that, a guess. However, I can wager no one held their hand up the whole time. This may shock you, so grip your phone tightly, but credit unions…aren’t digital banking leaders. Then what group is?

Digital banks and fintechs. And, frankly, it’s not even close. To rub it in just a bit more, they also won the race for younger, tech-savvy generations.

According to Cornerstone Advisors research, “[m]ore Gen Zers and Millennials call a digital bank their primary checking account provider than those that consider a community bank or a credit union…combined.”

That data point bears repeating:

More people 40 and under use a digital bank for their primary checking than every credit union combined. 

Maybe credit unions just need to work on their marketing. Members love dealing with the best not-for-profit financial cooperatives around! Right? Wait, right? Oh no, not here too!

Turns out, member satisfaction with credit unions is down, and has been on that path for a while, especially with Millennials and Gen Zers. Interestingly, member satisfaction levels fell for credit unions at the same amount as digital banks grew their satisfaction levels (around 2%).

In other words, people who make up the bulk of the population (and more moving forward) prefer digital banks to credit unions. The biggest reasons? Lack of satisfaction with “online banking capabilities that are easy to use” and the credit union being “easy to deal with”.

What is a humble credit union to do?

Mission

Group of Young Men Together
They just want connection and simplicity.

Yes, mission.

Just not the way you may think. GAC and other gatherings bring together credit union lovers to celebrate driving their mission of financial education, inclusion, and empowerment. But, given the data, that’s either not what people want, or it’s not getting across.

Otherwise, credit unions would be the dominant banking option of choice, right? Which means there’s a disconnect.

I’d bet people do want these things. It’s why they use digital banks, which make managing savings, spending, budgeting, debt elimination, and investing easy. With a bit of education, apps guide users to take positive steps with their own money.

In other words, they help more people take greater control of their financial life. Financial empowerment, you could say.

How is that not the credit union mission?

Combined with community impact, it is the mission. Which means people want it, but don’t feel they’re getting it from credit unions. Or to do so, have to deal with disappointing digital services. Something’s gotta give.

Claim Your Measured Mission Identity

Table of People with Phones and Laptops
Working together through technology.

So what’s missing? Obviously, first, you need quality digital options. You won’t be able to build them yourself. Partner with great providers. Ensure everyone has APIs so it all talks seamlessly and makes members and staff lives easier. I’ve covered that before.

Tech in hand, that’s not all. You still need something else. Branding and connection. Let’s achieve that in two, highly simplified, steps:

  1. “Measure your mission.” My CU Geek posts called for this concept numerous times, but when Anne Legg spoke the phrase in a recent chat, I had to give her the credit.
  2. Claim your identity. A common concept for my loyal readers, but, once again, someone else explained it more clearly than my dozen posts did. Jackie Brown of JB Collaborates suggests you “discover your individual credit union’s true identity”.

And step 3? Well that’s spreading the word, through actions made obvious in the previous two exercises. If you did them right, and continue to tweak as you go, the outreach will stem from self-appointed brand ambassadors: Your members.

After all this effort, will your credit union attract back all those people already lost to digital banking platforms? Probably not. But you will stem the tide, while building existing relationships and engaging the community, inspiring others to join.

In other words, shore up your digital offerings. Once you’re directly competitive and comparable to digital banks in people’s minds, the community focus shines through. And that’s where you excel.

Credit unions won’t make every person a member, but they can make a positive difference in more lives. And after all, isn’t that the mission?

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