Management guru Peter Drucker once said, “The purpose of business is to create and keep a customer.” It is a “law” of any business: It is more cost effective to keep your current customers satisfied than it is to look for new customers to replace them. A recent Ernst and Young global consumer survey found that 25% of customers changed banks in 2011 due to poor levels of personalized service and branch location proximity. While it would be nice to think that most of them switched from banks to credit unions as part of Bank Transfer Day, odds are that plenty went the other direction too.
Successful credit unions will look at all aspects of their operations for opportunities to retain current members by constantly striving to improve their member experience.
The phrase ‘member experience’ is broad and encompasses practically every aspect of a credit union. There are many ways credit unions can improve the member experience. Loyalty programs, financial education, and community involvement are a few things your credit union may want to look at adjusting. There is another area of member experience, however, that is often overlooked even though it comprises a large part of your members’ interaction with your credit union: ATMs.
As this recent whitepaper from NCR (our Preferred Partner for ATM Products and Services, Teller Cash Recyclers) states, “The ATM remains the most recognized banking channel as it satisfies many consumers’ daily banking needs. Yet, while the new multi‑function, self‑service ATMs offer the convenience of completing more complex self‑service transactions, they fail to recreate the level of engagement found in-branch.” ATMs are often the most frequent interaction a member has with your credit union, yet they are also the most impersonal.
Fortunately, given the prevalence of ATM use, there is a solution – use live video technology to add that human dimension to significantly increase the level of engagement and efficiency.
Video technology allows for a rich audio and visual experience to occur via ATM, offering complete teller availability to members 24/7. This type of technology so closely replicates the in-branch experience that in August, NCUA stated that Video Teller Machines qualify as federal credit union service facilities for select group additions and underserved areas. It’s a win-win situation: Both members and the credit union get the benefit of human interaction, with extended hours and from convenient locations.
But video ATMs also enhance the member experience by increasing efficiency. Based on real-world observations, NCR found that only 10% of teller time is actually spent interacting with members. Deploying video ATMs resulted in 50% less time to completion for members for their banking tasks – and the migration of a substantial 44% of transaction volume (50% of members!) away from in-branch tellers.
Helping members accomplish their banking tasks as efficiently as possible is certainly key to a positive member experience, as anyone who has waited in line for service anywhere can attest. Consider using your ATMs to help that process.
More information can be found on NAFCU Services’ NCR Preferred Partner Page (www.nafcu.org/NCR).
Post written by Chelsea Sisson, Associate Marketing Manager, NAFCU Services Corp.
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