We’ve all heard some variation of the phrase, “It’s 5 times more cost-effective to keep an existing customer than to create a new customer.” And while that sentiment is still true – credit unions spend more money converting a potential member than keeping an existing member satisfied, it’s a little more complex than that. Credit union member retention is only becoming more important as big banks and new fintech companies expand their reach in the financial and banking industry.
So, let’s talk about what credit union member retention is, how it works, and what the future may hold for your CU.
Credit Unions Are Already Ahead of the Game
The first thing to note about member retention is that credit unions are amazing at it. Because credit unions prioritize member services, reward loyalty, and are often active in their respective communities, it’s a lot easier for members to find it beneficial to give CUs their repeated business.
This does get more challenging with the push for digital transformation that we’ve seen in the last few years, though. A lot of credit unions rely on that face-to-face interaction time. It’s much easier to create a genuine relationship when you are interacting in person.
Leveraging Technology Is a Must
When it comes to technology and credit union member retention, this is where CUs are losing ground. Bigger banks and newer fintech companies and apps are gaining their members through the latest and greatest digital solutions. Leveraging technology trends is a skillful way to turn the tables on these newer and bigger businesses. While you’ll never compete with big brands (as is true in most industries, not just banking), you’ll spend less time and money on lead campaigns and generating new members because you can offer comparable digital solutions with that same CU personal touch.
Generational Habits are Vastly Different
If you are creating or assessing your credit union member retention plan for 2022 and beyond, it’s also important to think about the difference in generational habits. Your baby boomer customers are likely still going to place their trust in onsite solutions, face-to-face interactions, and manual financial services.
However, your Millennial and Gen Z members are going to want more digital options that still show a great deal of care and attention to the personal needs of each member. We’ve talked before about the role of personalization in the member experience, and that still holds true whether you are interacting with your customers through teller windows or apps.
You’ve Got Member Satisfaction Handled, Let Us Handle the Digital Back End
Credit union member retention is your area of expertise – but the digital solutions that power your branches and keep you and your members connected are ours. That’s why IMS offers configured resources that meet your unique needs through Infrastructure-as-a-Service. We tailor our program to your specification to ensure our solutions are straightforward, flexible, and pay-as-you-go so you can take advantage of premier cloud services at affordable prices.
Browse these and other offerings here on our website or contact us today!