Similar to money, it's not how many members your credit union can gain—it's how many you can keep. While member retention is paramount, it's not sufficient to simply retain members. Instead, your credit union must deepen the relationship by providing timely, personalized solutions throughout their life and across life stages. In most instances, your credit union will need to preemptively know and alert members of their needs before they do. Let's take a closer look at how credit unions can accomplish that.
Unlock the Power of Data Analytics
The battle for the hearts, minds, and wallets of your members is on! With innovative fintech companies popping up and standing out around almost every corner, many credit unions have opted to merge with these organizations to survive the burgeoning demand for digitization. And this reality has shone a vivid light on the massive discrepancies that exist within the industry. Particularly, the lack of data and analytics.
Data and analytics are already employed by the majority of industries to gain a better understanding and perspective on their target audience. While the data may be readily available, it goes largely unused by many credit unions. In fact, a 2018 Best Innovation Group and OnApproach study determined that 45% of credit unions didn't have a data analytics strategy in place. And the credit unions that did have the strategy in place reported it would take three to five years to activate it.
Data + Analytics = Personalization
Without proper data analytics capabilities in place, it becomes nearly impossible for credit unions to personalize their offerings based on the individual member's preferences, behaviors, and needs. Few financial organizations embody the importance and significance of data and personalization more than Credit Karma.
While Credit Karma isn't a bank, it uses customer data and personalization to help banks and financial institutions find customers. Largely driven by its data-driven, customer-first, personalization strategy, Credit Karma experienced exponential revenue growth of over 5,200%—making it one of the fastest-growing organizations in the U.S.
While impressive, Credit Karma's case study and use of personalization aren't unique or a secret. A paper created by Information Builders highlights the amazing connection between personalization and analytics. The paper further explains how analytics solutions can help credit unions better understand members, deepen relationships, and increase growth.
Simplifying Member Connections with Marketing Automation
Data, analytics, and personalization are key parts of the equation. However, marketing automation is the glue that binds the three together to drive member growth. In the most simple sense, marketing automation is the ability to trigger certain marketing campaigns and activities based on each member's unique characteristics or behaviors.
It removes time-consuming, tedious manual work while providing a more relevant, personalized member experience. Credit unions can implement marketing automation to perform a wide array of tasks, including enhancing the member experience, deepening relationships, and generating leads.
According to the Federal Trade Commission, they received more than 1.3 million reports of fraud during Q1 through Q3 of 2020, which resulted in more than $1.5 billion in losses. Amid embracing digitization, data, analytics, and marketing automation, here are a few tips credit unions can use to take a much-needed cybersecurity first approach:
- Implement multifactor authentication to protect members from unauthorized access.
- Train employees to detect and avoid phishing attacks.
- Actively define and take steps to mitigate risks as much as possible.
- Engage the entire workforce and encourage cross-team collaboration to increase digital security awareness.
- Implement safeguards and security controls designed to detect, avoid, and minimize security risks.
- Invest in secure hardware and software to protect critical assets.
Grow Your Credit Union from the Inside Out with FLEX
Selecting the right credit union core provider is paramount to all of your digitization strategies and ambitions. With FLEX core technology, you can embrace the latest innovations and technologies while ensuring a seamless and secure experience for your members. In the process, you can effectively grow your credit union from the inside out. To help you accomplish this, take a look at our Member Services eGuide.