Dr. Neil Goldman, Senior Partner, Goldman Consulting and Strategy, kicked off Day 2 discussing fresh research findings that will help credit unions to understand prospective members better and further member growth.
Bank customers still have negative emotions toward banks (even more pronounced for credit union members). According to Net Promoter scores, there are more detractors than promoters when it comes to banks. This score is reversed for credit union members. Still, despite negativity, most bank customers don’t move.
- Consumers have a high pain threshold
- They have low expectations
- Banking is a maintenance activity. (When was the last time
- Banks and Credit Unions play to win. Consumers play not to lose.
What keeps consumers from moving?
Most consumers have no problems with their current financial institution, it feels too much of an effort to move their money.
Credit Unions are often invisible to consumers. Just think about this: 60% of non-members don’t think they can join a credit union.
Dr. Neil Goldman offered a 10-step program to put member growth in the fast lane:
1. Adress the barriers
- Marketing Focus to join the consideration set
- Possibly a National Signage Program?
- Minimize the hassle: Implement a “Do it with/for them” transfer program
2. Target the triggers
- Consumers still leave banks because of life changes.
- How connected are you with life changes of members/prospects?
- Differentiate yourself when it comes to fee structure?
- When banks deliver poor service, do you deliver delightful service?
- Pull people in with special offers
- Are you selling enough?
3. Offer the right solutions
- Criteria in selecting institutions (Low Fees, Free Checking, mobile banking)
4. Adress convenience
- Virtual (online/mobile)
- Physical (Perception and reality: Consumers don’t make a distinction between branches, ATMs and mobile banking)
- Address the most important convenience for consumers? Online banking followed by access to ATMs and fast speed of service.
5. Go Mobile: Today’s HOV Lane – Tomorrow’s On-Ramp
6. Market compelling benefits: Free Checking, Better Loan Rates, 28,000 ATMs
7. Welcome problems
- And solve them remarkably well
- Be remarkable and people will make remarks about you (Seth Godin)
8. Proactive altruis & authentic selling
- Are you working for me or for you?
- Follow-up to serve – not to sell.
- When people are time-pressed: Don’t sell, just market
- When people are time-relaxed: Time to sell
9. Offer a superior call center: User-friendly, flexible, proactive
10. Master Maintenance – Embrace Enhancement
- Exceptional Maintenance is not enough
- Enhancement gets mindshare: Empowerment, More, Growth
Banks have opened a lane…take it!