The Power of Member 360 for Credit Unions

Collecting and analyzing data is the basis of a credit union member 360. Analyzing members’ behaviors and needs is not new. And modern technology and techniques make it more achievable than ever before. By doing so, credit unions can gain insights into how to improve their products and services and deliver a better member experience.

In the midst of trying to justify digital transformation, cloud adoption, and modern analytics, powerful examples can help. Member 360 shows clear ROI and can be a great anchor in building a business case.

In this post, I’ll share some real-world examples of how credit unions have seen successful results from applying Member 360.

Example 1: Strategic decision making

Navy Federal Credit Union recently launched a Member Strategy Office, combining survey and other primary source data, member behavior data, and user experience prototyping. The stated goal is to get into members’ heads for better strategic decision making. Underlying all of that is a member 360 data warehouse.

Not every credit union has the resources for such a large effort. But every credit union does have a lot of member data scattered across the organization in different siloes.

Pulling this together opens up the ability to segment and understand behavior within each segment. Understanding member segments’ needs can inform you where to focus, just like NFCU uses its Member Strategy Office.

Example 2: Member retention and lifetime value

It can cost $700 in marketing costs to acquire a single new member. This does not count new member onboarding hard costs and time spent with them. And this is for larger CUs–typically, the smaller the credit union, the higher the acquisition cost.

Lifetime value will be unique for your members, but consider $20,000 to be typical. Lifetime value is directly influenced by: acquisition costs and longevity of the relationship with members.

Using data on member behavior, credit unions can predict which members are most likely to cancel services. Targeted campaigns and loyalty programs targeted at specific segments increase retention.

Marketing research consistently shows selling to existing members is much less expensive and much more profitable than acquiring new customers.

Example 3: Wallet share

The other side of the coin from simple retention is increased wallet share. The same techniques to avoid churn can be used to increase the number of services or increase usage of core services.

Cross selling has been around for a long time in credit unions. What about more targeted cross selling? Narrow segmentation and targeting are available from a centralized Member 360. By understanding the signals and behavior, basic demographics, and product usage, you can define very segmented targets appropriate for targeted cross selling.

Example 4: Member satisfaction and experience

Due to 2023 events like bank runs and failures, consumer trust in banks is low. Credit unions are enjoying a boon as new members seek the trustworthiness and personalized service of credit unions.

But it won’t last. And it may not matter. Trustworthiness does not guarantee a loyal relationship with members. A decade-old report from Filense still rings true: “Consumers consistently identify credit unions as trusted financial providers, but that bond doesn’t translate automatically into increased wallet share or membership growth. In transitional times like these, credit unions may survive by maintaining historical goodwill-but they can’t win without a focus on delivering functional as well as emotional value to the consumer.”

A solid Member 360 can highlight low points in the member journey, missing touchpoints, and members’ communication preferences. As exciting as things like AI and advanced loyalty programs seem, credit unions can easily jump ahead instead of fixing the basics.

Member 360 can inform and enhance members’ interactions through digital channels and person-to-person communication.