Virtually every credit union loses some members, but few ever measure or recognize how many of their customers become inactive. High turnover rates often occur when a credit union invests an enormous amount of time, effort and expenses building the initial member relationship, only to let that relationship go unattended. As a result, the member becomes disengaged and more likely to walk away, leaving the business in a position to spend another small fortune to replace them. In fact, according to the White House Office of Consumer Affairs, it is 6-7 times more expensive to acquire a new member than it is to keep a current one.
Based on the facts above, the easiest way to grow your credit union is to focus on retaining current members. Once you decrease turnover rates, it’s often possible to significantly increase your growth rate because you’re no longer forced to make up lost ground just to stand still.
As Lanvera has specialized in transactional document solutions for 30 years, we want to provide some tips to help you increase retention rates through member-facing documents:
1. Provide Proactive Support
Most members who have problems with your products and services won’t tell you about it. According to Lee Resources International, for every member who complains about an issue, there are 26 who don’t say anything. Instead, they take their business to your competitor. We don’t want that to happen!
A best practice for “breaking the silence” and providing proactive support on transactional documents is to utilize the space on digital and print documents to request feedback and encourage open dialogue.
2. Reinforce Your Value Proposition
You work hard to deliver big value for your members through your products and services. And if you’re doing your job, they should see that. However, it doesn’t hurt to remind them!
Your value proposition is a clear statement that should:
- explain how your services solve each member's problems and/or improve their situation (relevancy),
- deliver specific benefits (quantified value),
- tell the member why they should stay with your credit union versus going to the competition (unique differentiation).
3. Add a Personal Touch
As technology continues to evolve, members are expecting more personalized communications that align with their behaviors, needs and wants. According to “The Cost of Poor Customer Service” by Genesys Global Survey, 38% of consumers say personalization is important to the customer experience.
Marketing space on digital and print statements, letters, notices, etc. can be optimized to target members with products and services that best fit their specific needs. A best practice is to utilize your existing data to identify specific criteria, including account balance, zip code, gender, and marital status, to name a few. From there, you can leverage dynamic communications on all digital and print documents to send personalized and timely messages.
While it’s next to impossible to have a 100% retention rate, you can drastically decrease turnover to if you take a proactive approach in maintaining current member relationships.
To learn more about member retention through transactional documents, contact us at firstname.lastname@example.org or click here.