Credit Union Geek

Marketing, Strategy, and The Force by Joe Winn

Tag: serving members

Is Selling In Your Credit Union Culture?

“We’re a service organization, not a sales culture.” I’ve heard those words from a number of credit unions. Too bad they’re wrong.

Ahh!! Put down the pitchforks and torches! Please, at least for a moment! Those credit unions were incorrect about one half of their statement. Of course they should remain a service organization. That’s what makes a credit union, well, a credit union. But no sales culture? Everything is sales.

  • What you eat for breakfast is sales,
  • If you choose to read my posts is sales,
  • Every decision is sales at its core.

What many credit unions have in mind when they hear “sales” is the aggressive “used car salesman”. You know, like this guy. (Which happens to be Kurt Russell from the 1980 film “Used Cars”.)

Kurt Russell Used Car Salesman

I’m in sales, and they’re a horrible representation of it (but he’s a great actor). I’m also professionally trained in a sales system which insists upon clarity and respect for all parties. As my sales coach used to say, “sales is a noble profession”. We don’t look at a bad driver and say, “drivers are all terrible”. Except here in Florida, where they are. Besides that, generalizations distort the truth.

Your credit union can deliver world-class service while being a sales culture. In fact, the latter supports the former! An MSR truly connecting with members learns about them. Their goals, their needs, their worries. This considerate MSR can suggest Payment Protection Insurance on a loan to someone who is worried about their family being burdened by a loan if they can’t work. Sure, they’re selling a product, and the credit union is making money (as should the MSR), but the member feels better served and more secure. They’ll remember how your credit union helped, especially if they need to take advantage of the policy.

Curious as to where to start? The Missouri CU Association shared their guidance with NCUA as a step-by-step process.

The other side of the discussion is a member who was not sold at all. They closed a loan and were “sold” nothing. Congratulations, your staff served the member by not selling them any additional services. Then, three months later, their car is totaled. Without GAP coverage, they now owe $4000 to make up the difference. Are they:

  1. Angry
  2. Disappointed
  3. Really pissed
  4. All of the above,

…with your credit union? You were serving that member, yet never told them there could be a large gap between what their car is worth and what they owe? That’s not service! Your lack of a sales culture could have changed this person, and their family’s life, for the worse.

Having a sales culture based on honesty and up-front discussions with members creates a win/win scenario. Members are happy to be offered services which may fit their needs (and can easily say no once informed). They’re thrilled when these services are used and they save money as a result. You’re a real life-saver in these cases. Through it all, your credit union makes more money, enabling you to offer more community services, lower rates, and better fulfill your mission.

Knowing what you do now, will you adopt a sales culture?

When you do, in the words of Dumbo, “Don’t just fly, soar!”

Did you find value in this content? If so, subscribe to my blog so you don’t miss a thing! Simply enter your e-mail address in the field to your right. And take a look at other content which may interest you.

Image credits: http://images4.fanpop.com/image/photos/20500000/Dumbo-in-Kingdom-Hearts-walt-disney-characters-20542266-786-568.jpg, https://www.imdb.com/title/tt0081698/

Your Members Hate Keeping You In Business

“Free is the greatest product never sold.” – Me, just now

Did I just come up with some crazy insight? Who knows. I just heard quotes at the beginning of an article lead some to get “hooked” and continue reading. See? You’re reading.

Back on topic, what do you offer for free at your credit union?  Of those things, which are premium services at other financial institutions, be they banks or other credit unions? I’d like to ask why you decided they should be free. Is there a cost to you? Is it a benefit to the member? If the answer to both of those questions is “yes”, then wouldn’t it make sense to ask, “what’s the benefit worth to the member?”

I’m all for lower or eliminated fees. They are punitive forms of payment (and research shows they are overwhelmingly burdened by those least able to afford them). That means your members aren’t happy when they have to pay. However, many subscribe to Netflix, Amazon Prime, Birchbox, and Blue Apron. The money spent is done so happily, as these companies offer more perceived value than the cost. Their products/services are a reward for spending, not a punishment resulting in forced spending. 

So, let’s review. Your credit union makes its money through things people don’t want to pay, like interest rates and fees (even if yours are lower than competition). There is a proven model in society of paying for things you do want. Credit unions should be things people want. What if you could change the dynamic, so your members are excited to “renew their membership” with their credit union?

It’s time to turn the whole model on its head. Instead of jumping about cheering for free and boring, let’s charge for value. Use that income to reduce or eliminate punishment fees. Shift the cost burden for your operations from those who can least afford it to those who want to pay for the benefits. Create an environment where members are happy to pay for all they receive from you. Guess what also comes with it? Members remember who you are. They consider you first for financial solutions. They recommend you to family and friends (your referral platform is ready, right?).

Will all members see the value and want to pay? No, and that’s fine. You can maintain basic, free services for those members. Remember the ones who couldn’t afford to pay? Now you’re really doing them a favor and living the credit union mission.

Sure, things like interest rates cannot go away. And you’ll have to keep some fees, just to protect the credit union. But what’s so bad about (partially) becoming a pay service offering incredible value? Netflix couldn’t offer what they have without charging. Blue Apron’s recipes and food would be pretty awful if they were in a race to free.

So go ahead, step out of the free zone and get uncomfortable. We all know you need to make money to survive. It’s just that none of us want to be the one who does the paying. How can you change that dynamic?

Disclosure: My company offers fee-based checking solutions to credit unions and community banks which deliver ongoing and substantial value to members.

© 2018 Credit Union Geek

Theme by Anders NorenUp ↑