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Written by Cyndie Martini
on August 17, 2018

Creating new member relationships is an important component of your credit union’s business plan. However, so is maintaining current member relationships. In fact, it costs five times more to attract a new member than retaining the ones you already have. Learn how you can strengthen your member relationships.

The financial industry has been around for hundreds of years. In the United States alone there are over 13,000 financial institutions. Other banks and credit unions are not your only competition for the market anymore. Companies like Apple and Paypal are also offering financial services to your members making the financial market even more competitive.

While increasing your membership is an essential component to your credit union’s strategy, strengthening your current member relationships is just as crucial. Here are four ways your credit union can deepen existing member loyalty.

  1. Member Service

Member service should be one of your top priority when working to strengthen relationships. Your members should be receiving a consistent banking experience whether they are stopping into your credit union in person, logging into their online banking or using their mobile app. Poor customer experience is one of the leading reasons a person will choose to leave their financial institution. A survey by EY found 41 percent of people that opened a new account was a direct result of poor customer experience. 

  1. Offer Convenience

A competitive advantage that your members are looking for and will set you apart from other financial institutions is the convenience of your products and services. Banking is no longer a 9 to 5 activity; people need to be able to access their account information any time, anywhere.

That is why it is essential to offer products and services that will make your members’ lives simpler. Services like mobile apps, fraud detection services, and a widely accepted card program will not only make your members happy but also strengthen their loyalty.

  1. Reward Your Members

Providing a card program with a rewards program is a win/win situation for both the credit union and the members. Consumers with an attractive rewards program will spend over $1,000 more than those without providing a boost to your card portfolio.

  1. Cross-Sell

Cross-selling is another way your credit union can strengthen relationships. If you have a member that is only utilizing one of your services, make them aware of your other sticky products like a debit card. Research has found members with debit cards have an 81 percent loyalty rate. Train your frontline staff on these cross-sell opportunities or utilize features like ATM messages or receipt messages in addition to your marketing efforts.

 

From mobile apps to rewards programs Member Access Pacific has the tools you need to deepen your member relationships. Contact MAP today to learn more.

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