Stop Trying to Delight Your Members Jim Kasch

“To exceed the highest expectations...”

“To thrill our members...”

“To delight our members...”

How are we doing?

“Credit Unions Top in Consumer Satisfaction” - CUNA

“Credit Unions Lead the Pack” - CFI Group

“Credit Unions Still Lead” - ACSI

Wow! We must be killing it!

In other words...

Credit unions have gained 0.7% in market share over the past six years.

5,785 Federally Insured Credit Unions Less than $150 million 4,592 440 480 273 < $150M $ 150 – 300M $300 - $1 B > $1 B Average Asset: $25 million Median Asset: $7.5 million

If we’re so great... Why are we shrinking?

It’s not about member satisfaction...

It’s not about delighting members...

It’s about reducing effort.

Organic Growth Promoter Loyalty Satisfaction Member Effort

Percentage of Satisfied Members who plan to leave the credit union: 26%

Percentage of Dissatisfied Members who plan to stay with the credit union: 76%

“Stop Trying to Delight Your Customers” Harvard Business Review

Customer Contact Council 3-year study 75,000 consumers Across industries

“Delighting customers does not build loyalty “Delighting customers does not build loyalty. Reducing effort builds loyalty.”

“Deliberately acting on this insight can improve service, reduce costs, and improve customer retention.”

Customers are FOUR TIMES as likely to leave an interaction disloyal than loyal.

How can we know how easy it is to do business with our credit union? Ask.

“How easy is it to do business with the credit union?” Member Effort Score “How easy is it to do business with the credit union?”

Low Effort 71% NPS Promoter 86% Passive 26% Detractor 14% Satisfaction Top Box 82% Satisfied 63% Neutral 0% Dissatisfied 16%

What can you do about it? Plenty.

What’s the message to your employees?

“Telling reps to exceed expectations is apt to yield confusion, wasted time and effort, and costly giveaways. Instead, stress the concept of making it easy.”

“Did you exceed her expectations?”

“Did you exceed her expectations?” “Can we make it easier for her?”

Where should you look?

Member Access Points

Electronic Channels Breadth of Offerings

Electronic Channels Depth of Offerings

Electronic Channels Functionality

Electronic Channels Member Expectations

Retail Branches

“How do you prefer conduct transactions?”

“How do you prefer to open accounts?”

“How do you prefer to apply for loans?”

Policies

Risk Convenience How do you balance

Internal Processes

Member Requests

Where do you start?

From the member’s perspective. Ask your employees. Fix the printer. Manage the whitespace. From the member’s perspective.

It’s not front office. Or back office. It’s one office. It’s the credit union.

Avoid channel switching. Head off the next issue. Avoid channel switching. Train for emotions. Use member feedback.

Improve self-service options. Don’t make the member tell you. Deconstruct processes. Don’t pass the buck.

Redefine “convenience”. Empower the frontline. Resolve at the first opportunity. Leverage improvement teams.

Jim Kasch jkasch@canidaeconsulting.com 407.347.4674