Members Expect You to Make it Personal

Not too many years ago, the idea of someone using big data to learn our behavior patterns might have conjured up an uneasy vision of a George Orwell-inspired world, with mainframe computers spitting out information about our every move. But today's reality is that most of us appreciate it when travel search engine Kayak.com recommends where to go on vacation or Netflix suggests what to watch on TV. In fact, we expect businesses we frequent to know our likes and dislikes.

“John,” a millennial who just landed his first professional job, thinks you should know he's in the market for a new ride. He expects to receive a text when his credit union has an auto loan sale, but he doesn't want to hear about your mortgage rates. And because “Kathy” is a busy working mom with a third grader and a preteen, she wants you to understand why she prefers mobile banking to a trip to the branch … most of the time. All of your members expect you to use what you know about them to connect in ways that show your credit union is paying attention to their unique interests.

What consumers don't expect from your credit union is a spray and pray approach to marketing. Not only is that so 2010, it isn't very effective. Baker Tilly often partners with MEMBERS Development Company and its credit union owners on initiatives like determining the best ways to use data analytics to reach and engage members. Our most recent research shows 79% of the credit unions we surveyed listed personalization as a moderate to very high priority. Why? Because they know it's what members want and expect.

Like most hot, new concepts, it's easy to make a buzzword out of personalization, and some have misused the term to the point that it's in danger of becoming overexposed before it's fully understood. Of course, the intent behind it isn't new to credit unions.

For years, credit union frontline staff have greeted members by name, remembered when they bought their last homes, or helped them select car loans. But getting to know members is more challenging in a digital world, with fewer opportunities to talk face to face.

Personalization blends the longing for one-on-one interactions with data analytics to understand members' needs and respond to them.

Retail service providers, including credit unions, today need a focused, organized approach to connecting with consumers, something Amazon has mastered. Automation has done much to cut costs and save time, but we fear the ability to keep close member ties has become a casualty of convenience. Enter personalization – a strategic way to develop and strengthen the member/owner relationship and foster engagement across multiple channels.

Launching a personalization program takes effort and commitment. Working together with MDC's 40-plus progressive, large credit unions, we've identified barriers that can hinder your program and should be addressed at the outset:

Technology: Are we, or our service partner, able to capture and integrate data from our core system, CRM and other sources across platforms? Can our data be trusted?

Time investment: Are we willing to spend the necessary time to gather and manage needed data?

Strategic expertise: How do we plan to get started? Can we turn data into usable information now?

Creepiness factor: Can we tailor communications to ensure each member feels cared for, but not preyed upon? Do we have a good balance between personalization and privacy?

The thought of these obstacles might overwhelm some marketing teams. But it's doable, and like any journey worth taking, it can be accomplished a step at a time. Here's how:

Set goals. Make sure management and staff are on board and understand the value of the personalization program. Set goals that connect your program to business objectives, such measurable growth and retention goals.

Get started, then refine member data to increase engagement. Consider this four-stage repeating cycle:

Listen: Think about the information collection channels available to you: The call center, in-branch visits, members' online and mobile behavior, and social media posts. Flesh out member profiles to find clues to better understand their needs.
Learn: Consolidate the information from all channels, analyze gaps and seek ways to improve it. Create personas for various demographics based on member interactions at the branch or call center, along with data collected from members' online and mobile buying behavior.
Strategize: Develop personalization tactics for different scenarios, such as routine member service matters, questions related to specific products or processes, and assistance based on behavioral activities. For instance, guide loan officers to prepare for appointments by reviewing member profiles so they are familiar with the member's past borrowing behavior and credit union interactions.
Deploy: Develop, prioritize and implement your plans across all channels while evaluating effectiveness. Make your branch inviting, perhaps including a spot where members can visit, use the internet or enjoy coffee. Equip call center staff with a complete view of members, as well as sales and service information. Be sure online and mobile apps greet members by name and use contextual information to deliver offers.

Sarah Lietz is director of projects and marketing for MEMBERS Development Company. She can be reached at 612-747-1013 or [email protected].

Kurt Schroeder is principal, growth strategies for Baker Tilly. He can be reached at 612-876-4816 or [email protected].

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