Is your credit union looking for ways to keep up and gain an edge in a competitive market? Retaining your members is one of the most foundational ways to do that. Let’s look at some ways credit unions can encourage their members to stick around for the long term through powerful personalization.
Does Personalization Really Matter for Credit Unions?
A global survey found that the most important factor for consumers when thinking about their financial institution is trust. It’s difficult to trust an institution you don’t feel a personal connection to. Personalization serves to build a closer connection between a credit union and its members, instilling trust and loyalty.
If you think of personalization as an expendable perk in financial services, think again. In a 2021 Capco study, 72 percent of consumers across age demographics said personalization was “highly important” to their banking experience!
Personalization is particularly critical for credit unions. One of the reasons people might choose to bank with a credit union instead of a traditional bank is because credit unions are known for offering a more hands-on and personalized approach to serving their members. That means if you want to retain your members, you need to deliver on this expectation.
If you’re sticking to the status quo and using generic messaging instead of leveraging customer data, you’ll lose your competitive edge. Personalizing messaging is a key marketing tactic for financial institutions that want to create a great customer experience to retain their customers and even grow their brand.
How Can You Get Up Close and Personal for Better Credit Union Retention?
Your members want personalized experiences, so now it’s time to consider how you can deliver that personalization. Here are five key tactics to incorporate into your personalization strategy.
1. Personalized Digital Experiences
Many credit unions have joined larger financial institutions in implementing mobile apps to meet modern consumer expectations and preferences. Although digital banking apps can be convenient, research shows that many of these apps are falling short when it comes to a key area: personalization.
When a member opens a mobile app or logs in on your website, they should see a dashboard that is personalized for them with their name and should have easy access to information about their accounts and payments. They should also be able to initiate communications online if they have a question or concern.
2. Personalized Direct Communications
Direct communications with members can help to keep them engaged with your brand. This chiefly includes email and direct mail. Take advantage of these channels and use them as opportunities for customized communications.
Rather than sending out generic mailings that feel like white noise, add personalized elements wherever you can. Even simply adding the recipient’s name can make a big difference, but you don’t have to stop there. Swap in images and text that you think will resonate best with each recipient using your customer data and tools like variable data printing.
3. One-on-One Member Services
Another important way you can introduce a higher level of personalization and encourage member retention is through your member support services. Train customer service reps and tellers to address members by name and add a friendly, conversational touch to interactions wherever appropriate to humanize the experience.
Whether conversations occur in person at a branch location or digitally, ensure that the service representative a member speaks with has access to the relevant customer data. This way, credit union members never have to repeat themselves or share information the representative should already know—instead, they’ll feel understood and appreciated.
4. Data-Backed Recommendations
One way consumers today enjoy personalization from the brands they trust is through customized recommendations. You can add value for your members with recommendations based on factors like their total assets, demographics, and life events. For example, why not recommend an upcoming seminar on buying your first home to members who are not yet homeowners?
You can also recommend relevant products based on the member’s current financial products and likely needs. A student, for example, may be interested in a credit card they might qualify for to help them build up their credit history.
5. Member-Driven Offerings
It’s also important to listen to members and find out what they want from you so you can respond strategically. You can use surveys or other means to hear from members directly, but you can also use member data to make personas that capture the priorities and behaviors of your members so you gain a general understanding of what makes your members tick.
This data can reveal possible gaps in your product or service offerings, and it can help you more effectively meet members where they are, catering to their needs and preferences to encourage credit union retention.
Encourage Long-Term Loyalty with Powerful Personalization
Personalization is key if you want to boost your credit union retention rates and deliver an amazing customer experience. Want to learn more about instilling loyalty among your members? Check out our eBook, Customer Loyalty Programs: What You Need to Know!
