“Experience” is trending. Forrester reports that 90% of senior executives across industries including retail financial services cite “customer experience” as a top strategic priority. For President/CEO Amy Nelson and her team at Point West Credit Union in Portland, Ore., differentiated member experience is the next big stage in Point West's development. 

“We're a unique credit union working with many diverse communities,” Nelson said. “We explain our mission well. Now we want to make sure the public experiences it, too.”

Nelson also expects her industry partners to walk the talk. Perhaps ride the talk is more apt. During a recent strategy session at Point West, Nelson challenged me to bicycle from my home office in Eugene, Ore., to the Point West headquarters in Portland, Ore. What could possibly go wrong?

Like your competitive environment, the climate for my ride was challenging. The heat was oppressive and the headwinds were stiff. One hundred-thirty miles and nine hours later, the ride became the perfect metaphor for the challenges and power of experience strategy.

So, what is “experience?”

Experience is strategy distilled. Harvard's Michael Porter said, “Strategy is choosing to perform your activities differently than your rivals do.” Extending Porter's reasoning, “experience strategy” is choosing to engage members differently than your rivals do though all touch points. Differentiation is the essence. This means that all routines – especially those in common with your financial industry competitors – must be re-engineered wherever possible. Is that a tall order? Sure, but the public will recognize and reward the effort.

Experience organizations become highly empathetic entities. They feel what their customers feel. This skill is critical in eliminating the pain points that frustrate consumers about “banking” and experience strategy is about much more than competence, effectiveness and efficiency. 

Experience! Why Now?

Experience strategy is about story generation – not storytelling. Your competitors are all busy telling impressive stories. Experiences always trump stories. Deliver them and build the emotional bonds that dramatically increase share of wallet. That's the power of experience.

Forty-five miles into my ride, I could identify my early wins. A few tough climbs were behind me and the navigation system confirmed I was back “on course.” These early wins would prove essential. Resistance was about to ramp up and my resolve would be tested. When developing your experience culture, you will face resistance, too. Early wins will be required to keep your organization pressing forward, growing from competent to compelling. 

Why Is Differentiation the One Essential Objective?

As a not-for-profit financial cooperative you are fundamentally different than your competitors. These differences will change consumer behavior if you can make them understandable. Attack the headwinds – or at least keep the pedals turning – to create meaningful space between the experience of banking generally and the unique and memorable experiences required by your mission, vision and values. 

Defining and delivering different “banking” experiences is not an easy challenge. Where do we start? Which things should we do differently? Start from your members' point-of-view. Consider everything that drives members' understanding of your organization beginning with the most common retail routines. Quick wins on the front-line are the momentum-builders your organization needs to make experience strategy their own and perfect the member mind meld.     

Purvis & Point West CU's leadership

(left to right: Amy Nelson, President/CEO; Steve Pagenstecher, VP of Member Experience; Oscar Porras, remote BM; Matt Purvis; Heather Noel, VP of Financial Solutions; Erin Ward, HR Manager & Sarah Bailey, BM)

Experience Is Not Satisfaction

Although experience strategy will raise satisfaction scores – we've seen marked improvement in satisfaction from members and staff members, alike – satisfaction is not the primary objective of experience strategy. Experience helps us differentiate from the outside in, driving PFI membership.

If It Ain't Broke, Consider Fixing It Anyway

 Purvis said when he took a break from riding to take the ferry across this river in Canby, he wished it could have been much wider.

Experience is truth – not spin. In the age of hyper-competition, commodification, consolidation and “content shock,” credit union awareness and understanding will not be improved by a revised marketing message, a rebrand or the next digital channel. It's time to compete on a field of your own design. Experience strategy can be the answer.

One hundred-twenty-five miles in and one more painful climb. This one into Lake Oswego, Ore. Urban traffic meant more competition for a narrow, twisting and sunbaked ribbon of asphalt. At the bottom of the final descent – long and fast – a driver side window slid down, “Hey, you're making good time.”

Experience cultures are like that. What looks smooth and effortless – like coasting downhill on a bicycle – is the result of deep introspection, careful insight into the competitive landscape, great teamwork and an unwavering commitment to walk in the members' shoes.

I accepted Amy Nelson's challenge to ride 130 miles to work and they accepted mine: To create a unique experience culture, honoring their communities and setting an entirely new standard for member experience. Mercifully, my experience ended at the posh Benson Hotel in downtown Portland. Experience organizations never rest. They are hard-wired to innovate. They become market leaders by building cultures that define and deliver sustainable competitive advantage for all. And after all, isn't that the promise of the credit union movement?

Shaine Taylor & co. of West End Bikes in Portland, Ore., provided Purvis with expert route guidance.

Matt Purvis is a Principal at Purvis Management. He can be contacted at 541-556-0990 or [email protected].