How Credit Unions Can Improve the Member Experience with Advanced Analytics

To ensure your credit union survives and thrives as the banking industry evolves, you need to invest in technologies that not only entice new, younger members to join, but help you maximize your wallet share by keeping current members happy and loyal. The right business intelligence tools can help you achieve all these goals and drastically improve the member experience.  

Self-service analytical and business intelligence tools drive better, faster decision-making. When your credit union combines data from multiple sources to build tailored reports and create rich analytics, the right experience and journey for your members comes into focus. The power of real-time intelligence is the insight that can begin to predict behavior, allowing you to increase the impact of and responses to marketing communications to your members.

Intelligent business analytics will allow your credit union to:

  • Effectively communicate with members – Identify members who most need a service or product provided and proactively communicate with them using their preferred channel and time of day.
  • Develop insightful relationships with members – By cultivating a member-specific conversation or interaction using data science, you differentiate your value and strengthen the loyalty of the member.
  • Create greater distance from large banks – Leverage intelligent analytics to empower your credit union to serve their members with thoughtful and well-designed messages that clearly distinguish you from larger banks. 

Deepen Existing Member Relationships and Improve Member Retention

Member retention is just as important as member acquisition. So, the same enthusiasm and data-mining strategies that go into gaining new members should go into improving relationships with existing members. Credit unions that use data analytics to build relationships with members can positively influence retention rates. High member satisfaction levels lead to greater loyalty and referral business. In fact, highly satisfied members purchase 2X as many products as unsatisfied customers, so your investment in member satisfaction can have a profound effect on your bottom line.

It all starts with building a better member experience. By tracking and measuring important indicators in a member’s life, career, family status, income and geography, you can segment members into easily targeted groups. However, all members are not created equal and some relationships are worth more than others. That’s why it’s vital to identify the most loyal and profitable members who can drive revenue at your credit union. Enter a solid advanced analytics program that can arm you with information to:

  • Identify the truly profitable members.
  • Target what communication channels are the most appropriate and desired to reach these valuable members.
  • Pinpoint the products and services that your loyal members need, want and can use in the future and help create best practices.
  • Segment the members who are most likely to churn and take the appropriate action.

From there, you can develop refined marketing campaigns that create relevant, personalized messages and experiences. This shows the members you care and are listening to their needs. Your credit union can use data analytics to improve the member experience and strengthen relationships by:

  • Improving branch and ATM service, locations and convenience.
  • Refining and improving marketing campaign messages, offers and timelines.
  • Accelerating the lending and loan approval process.
  • Matching the right products and services to the right members that are competitive with those of other financial institutions.
  • Arming credit union employees with tools and knowledge to treat members as unique individuals rather than just account holders.

Advanced analytics can be particularly effective with:

  • Segmentation driven marketing – By consolidating a member’s key demographics (age, gender, marital status, income and many more) – you can easily segment members into targeted groups. These lists drive marketing campaigns that create relevant, personalized experiences improving the attention span of your members that provide tangible opportunities to discuss new products or services.
  • Merchant offers – Based on transaction data and your member relationship management data, you can provide personalized and anonymous incentives that are sensible for your members. A merchant-funded offer could encourage a member to use his or her credit union-issued credit or debit card more often by rewarding him or her with points or other rewards to stores, hotels or things of interest.

Business analytics can go even further, tracking where and how your members use their cards, access your online or mobile banking application and more in order to determine their habits and predict their financial needs. For example, members registering their children for driver’s school, using their card, could be an indication of a near term need for additional vehicles or increased insurance coverage. Your credit union could then proactively send them offers for a car loan and insurance.

Better Insights with Better Data

Intelligent analytics are imperative to provide improved, dynamic marketing campaigns that serve your members with a high degree of confidence and integrity, while seeking and identifying new revenue streams through member segmentation, transactional connections and personalized opportunities that deliver smart, custom and timely offers across multiple delivery channels.

Most credit unions have vast amounts of data about their members, but they have trouble sorting through it all to make meaningful decisions. By investing in the right advanced analytics tools and data science consultants, your credit union can improve the member experience and rise above the large, more analytically advanced financial institutions.

A solid business analytics program gives you the power to uncover valuable insights while recommending prescriptive actions. By having a 360-degree view of your member portrait, personalized communications and enriched service and experience, you can maximize relationships and your community impact — and you can increase member loyalty for years to come. It’s not rocket science, it’s data science. 

There are numerous data tracking and marketing companies serving credit unions to provide insight into a member’s behavior and lifestyle, but it is important that a credit union partner with an organization who understands the unique nature of credit unions.

Hitachi Solutions has been enabling credit unions to translate data already collected into actionable insight through Dynamics 365 and Power BI. In addition, Hitachi Solutions can turn ideas from other businesses’ analytics programs into plans you can use as well. Contact the team at Hitachi Solutions to learn more.

This post is published by Ashley Harbaugh on behalf of two members of the Hitachi Solutions team who collaborated on this post: Tim Blackwell and Robert Ruppert.