Transcript Mining for Member Gold


Mine for membership gold In…
 Existing member retention
 Potential member recruitment
 Relationship management
Question
1.What caught your attention
about this topic?
2.What is your expectation for
today – what are you hoping to
leave with?
|Recruitment|
Human
Centric
Messaging –
Marketing
3.0
Trust
Creation
Hispanics
Existing
Member
Households
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Selling products to a target market without
considering the needs and wants.
Product centric era
“Any customer can have a car painted any
color that he wants…so long as it is black.”
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Not so simple
Information technology
Informed consumers compare similar
products

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Active, anxious, creative
Request participation
Consumers
 Assume product equality
 Indignant toward lack of choice
 Demand
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Purchase products that reflect their values
Now, is the age of the idea

1.o
 1960s, mainframe computers advanced into the
corporate world and became essential

2.0
 1970s, wide adoption of the minicomputer. This
signifies the second wave
Philip Kotler, Marketing 3.0: Values-Driven Marketing

3.0
 1980’s, personal computers

4.0
 1990’s, networking and the internet, and the
spread of distributed computing
Philip Kotler, Marketing 3.0: Values-Driven Marketing

5.0
 Current wave, unprecedented coalescence of
three powerful technological forces:
cheap and ubiquitous computing devices
low-cost and omnipresent bandwidth
open standards— offering access to limitless
connectivity and interactivity of not only corporations…
but also individuals
Philip Kotler, Marketing 3.0: Values-Driven Marketing
Question
1.What marketing era are you
living in?
 1.0
 2.0
 3.0
Edelman: Citizens Unite: Good Purpose Study
Edelman: Citizens Unite: Good Purpose Study
Edelman: Citizens Unite: Good Purpose Study

The goal of 21st century co-creativity
marketing is not just to market to consumers,
but to have consumers who believe in what
you do, market with you…
Questions
Does your brand, product and
culture reflect: “Do good + Do no
harm”?
Are you taking these new trends
into consideration in your
marketing messages and cu
culture?
Question
“There are more than 12 million
nonmembers younger than 18
living in member households.”
What does this tell us?
Source: CUNA Young and Unaware
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Reach their parents first
Hold their hand
Create tiered youth programs – partner
product with education

Who are your members most likely to trust to
give them advice when researching a new
product or service?
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Reviews from people like you on websites?
Friends and Family?
Advertising or promotional features?
What the company says about itself?
Professional reviews on websites, newspapers or
magazines?
Source: Alterian
Question
Do your marketing dollar allocations
reflect these percentages?
Do you have a strategy for making
potential “friends and family” your
advocates?
“The Hispanic market is the largest, fastestgrowing, youngest, and most underserved
market in the U.S.”
Credit Union Magazine October 19, 2010
“Hispanics will make up approximately onethird of the U.S. population by 2050.”
Pew Research Center
“Almost one in five people under age 18 is
Hispanic.”
Pew Research Center
“The average age of Hispanics is 27, while the
average age of credit union members is 47.”
US Census Bureau/CUNA
“Almost half of all people entering the work
force are Hispanic…”
Bureau of Labor Statistics
“Hispanics have a purchasing power that’s
expected to reach $1 trillion next year—and yet
40% to 55% of U.S. Hispanics don’t have
relationships with traditional financial
Institutions…”
Selig Center for Economic Growth
Question
Are you ready for the Hispanic
market?
|Retention|
Onboarding
$ocial
Currency
Question
A 2008 Harland survey of 148 credit
unions and 102 banks found banks
were able to attract new
customers/members at double the
rate of credit unions. However, the
average credit union member
relationship grew at triple the rate
of banks.
How?

The answer lies in the fact that banks were
losing customers over twice as fast as credit
unions, resulting in a much higher turn-over
rate at banks…
Creditunions.com
“30 percent of new account holders leave
during the first year—a rate three times higher
than established accountholders.”
Source: Harland Financial
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“It costs 6 to 7 times more to acquire a new
member than to retain an existing one”
Source: Callahan and Associates
Vs.
Question
If it costs 6 – 7 times more for new
member recruitment, are we
spending enough of our time and
money on existing member
retention?
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“Database research of over 14 million
member households nationwide conducted
by Raddon Financial Group shows that 25
percent of the total cross-sales over the life of
the member relationship occur within their
first three months of membership with the
credit union, and 50 percent occur within the
first year.”
Raddon Financial Group
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“Only 40% of credit unions have an on
boarding strategy”
Credit unions.com
Lower
Attrition
Onboarding
Increased
Profitability
Higher
Satisfaction
Fiserv identified the Top 10 best on boarding
practices working with 5 major regional banks.
1. Data – collecting/mining information
2. People – employee training/sales execution
3. Process – systematic approach to key on
boarding steps
4. Communication – coordinating/timing
consumer messages
Fiserv
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Ask customers for their preferred time and
method of contact
Collect and confirm e-mail addresses at each
interaction
Mine customer activity and account balance
data for targeting and messaging
Fiserv: Successful Onboarding
By employing these best practices to ensure customer data is
accurate and current, and using data to develop more relevant
and timely communications, the highest-performing
banks in the study reported:
 82 percent of Demand Deposit Accounts (DDAs) with confirmed e-mail
addresses
 17 percent of enrolled bill payment subscribers activated their service
within 30 days and 20 percent within 60 day
 A cross-sell ratio of 5.4 products per customer for new customers, which
is two products greater on average than the next closest bank in the
study services
Fiserv: Successful Onboarding
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Create employee advocates to promote
online banking and bill pay
Streamline customer takeaways and
encourage representatives to use them
Incent staff and measure in annual reviews
and scorecards
Fiserv: Successful Onboarding
Utilizing these best practices to encourage,
motivate and reward its people to enroll and
activate customers in online banking and bill pay,
the highest-performing banks in the study
reported:
 88 percent of customers who enroll in online banking
activate the service
 11 percent of DDAs are actively using online bill pay
 28 percent of active bill pay users are receiving e-bills
 55 percent of new customers use e-Statements
Fiserv: Successful Onboarding
The top three process-focused on boarding
best practices being used by the banks in the
study were:
Auto-enroll new customers in online banking with
bill pay across channels
Execute multi-channel customer incentive
programs to drive adoption of online services
Focus on activating debit card usage and
encouraging direct deposit
Fiserv: Successful Onboarding
“Profitability is significantly higher for
households that use online bill payment (2.5
times more profitable) and for high bill
payment households (over 3.5 times more
profitable) than households that do not use
online bill payment.”
Fiserv
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Bill pay customers use an average of 4.2
services offered by their bank or credit union
as compared to 2.5 services for customers
who do not use online bill pay.
Source: 2009 Consumer Billing and Payment Trends Survey, Fiserv, 2009
Source: Consumer Billing and Payment Trends Survey, Fiserv, 2009
By using these best practices to strengthen the
online banking/bill pay enrollment and
activation processes, the highest-performing
banks in the study reported:
78 percent of new customers enroll in online
banking and bill pay
53 percent of new customers are active bill pay
users
77 percent of new customers have active debit
cards
Fiserv: Successful Onboarding
Question
What are your new member percentages?
Would this be worth investing time into at
your credit union?
Theirs
78 percent of new
customers enroll in
online banking and
bill pay
53 percent of new
customers are active
bill pay users
77 percent of new
customers have
active debit cards
Yours?
___percent of new
customers enroll in
online banking and
bill pay?
___percent of new
customers are active
bill pay users?
___percent of new
customers have
active debit cards?
Two Best Practices Found In Onboarding
Communication
1.
2.
Designate one department to coordinate
onboarding activities across channels
Communicate consistently throughout the
optimal window of 15 to 60 days after initial
customer contact (use multiple channels)
Fiserv: Successful Onboarding
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The bank that received the highest scores in
the communication area utilized:
 a central system to initiate and monitor client
contact throughout the onboarding process.
 also leveraged scripts and communication
templates to ensure consistent messaging and
defined standards for leaving messages and
handling frequent outcomes.
Fiserv: Successful Onboarding
By utilizing these best practices to consistently
communicate with customers throughout the
onboarding process, the highest-performing banks
in the study reported….
9.1 (out of 10) customer satisfaction rating for
branch account opening
9.1 satisfaction rating for online account opening
8.7 satisfaction rating for new customer online
banking and bill pay enrollment
45 percent of DDAs actively using online banking
and 11 percent using bill pay
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Agree that onboarding is an organizational
initiative
Work with other departments to implement
consistent cross-channel delivery
Use the quadrant framework when creating
your onboarding strategy
Vivaldi Partners: Social Currency
Vivaldi Partners: Social Currency
Vivaldi Partners: Social Currency
Question
Which Social Currency levers
can your credit union
leverage?
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Think, Act, Do…3.0
Hispanics, Social Responsibility, Frontline
staff are opportunities for growth
Remember, your one of…
Onboarding is underused and proven to
increase profitability!
New Era
Marketing:
3.0
Consumer
s
Existing
Member
Household
Members
On
Boarding
Retention
Strategies
Hispanic
Recruitment
Opportunitie
s
Vivaldi
Social
Currenc
y
Levers
Trust
Creation –
Focus more
on Family
and Friends
|
Josh Allison, CUDE
Founder and Chief Ideator
509.688.4959
[email protected]
JoshAAllison.blogspot.com
|