As a credit union today, there is nothing more important to you than inspiring member loyalty. And in today's competitive marketplace, every member touchpoint counts, and every missed opportunity has its cost.  

While that big bank down the street may have more marketing and operational bandwidth, inside your systems is a goldmine of information that can level the playing field. 

By putting to work the right analytics tools and strategies, you can make the most of member data to further your marketing and sales objectives and create a consumer experience that is second to none.

“Analytics technology allows you to understand the behaviors and demographics of your members in detail,” said Ryan Zilker, business manager, product development for CO-OP Financial Services. “As a result, credit unions can better serve the needs of their members by reaching out to them in a more personalized way.” 

According to Zilker, your credit union benefits as well. “You no longer need to spend the time, money and resources it takes to reach every member with all of your marketing messages,” he said. “When it comes to marketing initiatives, you can be much more efficient – and more effective. There is simply no substitute for getting the right message to the right person at the right time, and that is exactly what analytics allow us to do.”

Leveraging Your Member Data

Zilker noted that analytics programs allow your credit union to determine precisely where, when and how your members are using their cards, including the geographic areas, merchants and ATMs they frequent. You can then create a roadmap for doing business with them. 

“Where analytics really shine is in their ability to jump-start underperforming product lines,” Zilker said. “For example, you can use analytics to identify members that use your card infrequently, say three times a month on average, and then offer these members a small incentive to increase their usage to five or six times a month. This sets a very realistic goal for members, rewards them for their loyalty and increases revenues for your credit union.”

The same goes for members who haven't activated cards and those who prefer PIN transactions. “We all know that signature transactions are more profitable,” Zilker said. “Analytics can help you create a promotional campaign for members that use PINs that entices them to sign for purchases instead.”

Analytics can also play an important role when it comes to managing your ATM fleet. “Knowing how each ATM is performing can help you increase your overall ATM revenues and determine the best sites for future ATMs as well,” he said.

The Fastest Way to Fight Fraud

Consider also that analytics are likely your best fraud detection resource. “The right analytics technology can tell you if a card used in San Francisco is used minutes later in New York, and instantly respond to the situation,” Zilker said. “You can also identify common points of compromise. If you see that three members were compromised at the same Laguna Beach, Calif., mini-mart, you can immediately identify others that used their cards there in the same time frame.”

As new transaction types continue to hit the market, analytics will become even more critical to your success as a credit union. 

“We are living in an increasingly connected world,” Zilker said. “The arrival of new payment technologies, such as Apple Pay, EMV, mobile P2P solutions and more, mean that credit unions will find themselves heavily relying on analytics to fight fraud and serve members in more meaningful ways. The fact is that understanding your members well is the first step toward making their credit union experience as rich and rewarding as it can be.”

Bill Prichard is senior manager, public relations and corporate communications, for CO-OP Financial Services. He can be reached at (800) 782-9042, ext. 3450, or [email protected].

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