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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if you keep you customers happy, then that will usually help bring potential customers through the help of ” WORD OF MOUTH” from those present customers.
Keeping your members happy is the most important function you can achieve at a credit union. Members who are happy bring you additional business, they spread the word about how wonderful you are. They give you their business, and give you leads such as family members or co-workers or neighbors who are not members. They spread the gospel truth about how good you are to them.
Credit Unions today are widespread and offer pretty much everything a member needs, but most communities have more than one and members can make a choice. So who will they choose? If you are the one who makes them happy, offers en exceptional service experience in a warm inviting atmosphere, the choice becomes easy, they will pick you. In fact in more than 25 years of credit union banking I’ve found this to be the single most important philosophy that a Manager, Director, CEO/President, or Board member can have. Price is secondary to exceptional service delivery. Members will pay a small amount more for better service, for someone they can trust, and for that piece of mind that they are being taken care of and have someone they can go to if a problem arises.
Staff wisely, look at the message your members see’s, and never settle for anything less than exceptional service delivery from all of your staff.
Stephen J. Thommen
Great points, Stephen. I definitely agree with your point that price is secondary to exceptional service.