Credit Union Member Experience is About the Bottom Line

Sean Galli
Credit Union Member Experience is About the Bottom Line

Credit union member experience sounds fluffy and ethereal. And some credit union executives see it that way…but that perception couldn’t be more wrong. 

Your credit union member experience is about securing the bottom line without sacrificing the member relationship. Both your financial success and positive member experiences live in harmony.  

Simply put: when the member wins, you win. You win accounts. You win loans. You win trust.

But you’re losing too often because you don’t concentrate on the credit union member experience. It requires time, effort and training to reap the bottom-line rewards of your investment. Let’s review how your member experience program affects the bottom line, how to measure success and the next steps to take.

 

The Numbers Don’t Lie

 

A 2022 CU Management article states credit unions with incredible member experiences show 22% higher ROA, 17% higher net income and 80% higher member growth than credit unions not prioritizing member relationships. McKinsey & Company says an excellent experience program brings in two-to-seven percent more in sales. And Gartner research found 82% of people who loved an experience returned to the organization (even when presented with a competitor’s options).

The numbers show a solid credit union member experience is a real money maker. Not just one time, either, but over and over again.

 

How To Measure Success

 

If the credit union member experience is something with tangible financial results, then it must be measurable…and it is!

There are several ways to measure your results. The top two credit unions use are:

 

1. Net Promoter Score (NPS) – The NPS is the most basic way to measure your credit union member experience success. This measurement asks the question: “How likely is it that you would recommend the credit union to a friend or colleague?” The respondent answers on a scale from one (unlikely) to ten (very likely). Higher average results indicate a positive member experience.

 

2. The Performance Gap (PG) – The PG is used less, but it’s critical to discovering specific areas of success or failure. It asks two questions: “On a scale of one to seven, how important is [area; e.g. branch location] to you?” and “On a scale of one to seven, how well are we doing on [area]?” Any average scoring gap greater than two points between the questions indicates you have a problem.

 

A note on the NPS – sometimes it works very well and other times your members lie to you.

SAFE FCU increased its NPS score to 80% following On The Mark Strategies’ training, and the institution had the loan numbers to prove its validity. But a different credit union showed impressive scores alongside negative financial results. Clearly, members weren’t answering the NPS question honestly.

In the second situation, the PG questions will give you a more accurate assessment of how people truly feel about you.

 

Your Next Steps

 

Are you ready to develop something revolutionary for your members and your bottom line? If so, here’s what you do next: 

  • Receive specific details about the credit union member experience process.
  • Schedule a journey mapping session to organize your new program.
  • Schedule trainings for your staff to implement the program and wow members!

Book a free consultation with On The Mark Strategies now to get started.

Sean Galli
Marketing Coordinator
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