Driving Member Loyalty: 3 Techniques to Improve Credit Union Member Retention
Customer acquisition can be expensive, so to see the ROI from marketing dollars spent on acquisition, credit unions must retain their members.
Competitive product and service offerings that add real value to members’ financial lives are important for member retention, but showing that your credit union cares about their overall well-being drives true member loyalty. To move the needle on retention, credit unions can show they care by providing omni-channel communication and incorporating personalization to drive emotional connections with members.
The importance of member retention is clear. According to Bain & Company, increasing your member retention by 5% can lead to a 25% increase in profit. Due to the trust existing members already feel with your institution, they’re more likely to use more products and services than a prospective member.
Moreover, the cost of acquiring a prospective member can be five times the cost of retaining an existing member. While attracting prospective members must be a priority to sustain credit unions over the long term, activities that increase member retention have a higher ROI.
Let’s explore 3 tactics to improve member retention:
1. Communicate on multiple channels
Building trust through communication requires your credit union to be where members are. Some members prefer to speak in-person or over the phone, while others will prefer getting their information on the web, and some will prefer a mobile app. An omni-channel approach ensures that your credit union is always convenient to reach, preventing members from needing to explore their options.
When communication is easily available where members feel most comfortable, it builds a sense of genuine connection between your credit union and its members.
2. Use personalization to drive emotional connection
Every member has a unique financial situation, and they want their credit union to recognize that. Canned content or product offerings that aren’t appropriate for their situation won’t add to trust the way personalization can.
Personalization leads members to resources, products, and services that fit their unique needs, without pushing non-applicable content. When users see well-executed personalized content, they feel understood by their credit union, which can drive loyalty. And, they’re more likely to engage with the products and services shown, increasing the up-sell potential.
Keeping track of major milestones can also personalize the member journey. Credit unions can pay close attention to age or major updates to accounts to understand where members are in life. Noting major milestones, like retiring, welcoming a new child, or getting married, can help members feel taken care of while providing specific up-sell opportunities for your credit union.
3. Offer valuable products and services
While connection-building is paramount for driving loyalty, it must be balanced with offering the best products and services possible and staying up-to-date with competitors. Paired with personalization, the resources you offer can strengthen your connection with members.
By offering relevant products and services and presenting them to members at the right time, members can view your credit union as a one-stop shop for all their financial needs.
How Paperwork drives member retention
Paperwork is a holistic financial wellness app that credit unions can white-label and provide to their members. We empower members to make confident financial choices, plan for the future, and protect their families through personalized insights and comprehensive guidance at each stage of their financial journey. By offering Paperwork, credit unions can incorporate the techniques mentioned above into a single, cohesive solution designed to drive retention and increase member loyalty. .
Personalization is central to the Paperwork app, serving users with financial insights tailored specifically to their unique needs. The app also offers actionable steps to help users bolster their financial health, based on their individual circumstances. The app goes even further by asking questions about major milestones and offering contextual solutions.
Timely alerts, educational emails, and financial coaching provide open channels of communication with members, resulting in more meaningful interactions that continuously add value.
Paperwork drives credit union member loyalty in an easy-to-use app that makes financial health accessible to everyone. If you’d like to see the difference Paperwork can make in your credit union’s member retention, schedule a demo today.