Why Personalization Alone Doesn’t Work: Credit Unions Need Humanization

Targeted digital ads – those banners that follow you around the web – are the new status quo. But they can feel cold and mechanical. This is the perfect illustration of why personalization alone doesn’t work: Without context, it slashes consumer trust.

And trust, as credit unions know, is critical to banking.

Any organization can send out marketing emails with the recipient’s first and last name; members expect their credit union to deliver a higher level of customization. They’re looking for a humanized experience that reflects their relationship with the organization.

Whether your team is working to establish new relationships or maintain ties with loyal members, your outreach and communications must have a human element. You can’t grow relationships and retain members without it.

Here’s what you need to know about humanization to make a difference in your member relationships.

Personalization Vs. Humanization

Both personalization and humanization are key to converting leads and retaining members, but personalization alone isn’t enough.

Personalization is the delivery of a message based on simple demographic information. This might be an email addressed to you by name, as well as a timely and relevant offer to your financial needs. Maybe the email contains news – say, you’ve been preapproved for a mortgage.

Now, imagine you’ve just closed on your first house. You leave the meeting and check your email, only to find that email offering you a pre-approved mortgage loan from the same credit union whose offices you just left. The communication’s automation is exposed: This message wasn’t written – or even sent – by a human.

This type of email personalization failure makes your members feel like part of the masses. The margin of error for personalized communication is very thin, and that’s where humanization is key to building strong relationships.

Humanization helps serve members timely, relevant offers by creatively leveraging data and technology to connect them to people who represent your financial brand. This people-forward approach helps put relationship managers in touch with members when they need information or at junctures where they can deepen their relationship with your financial brand.

Instead of sending out a canned message offering members a product they already have, a relevant message to a member who just signed their mortgage contract might help set the tone for homeownership. This could look like a line of credit for home improvements, or it could be a call to check in to find out if they have any other needs related to their new home.

When you succeed, you’ll be able to reengage your member, answer their questions and, ultimately, prove the value of your relationship. This is the kind of human touch that helps establish trust and personal connections in member relationships that can stand the test of time.

CUs Are Exceptionally Well-Positioned to Deliver a Great Member Experience

Your members are personally invested in your organization in a way that customers at banks are not; they expect more from their organization because they’re a part of it. They’re members.

And as a part of your organization, they expect a higher level of support. Members aren’t just thinking about their financial success – they’re also thinking about yours.

This is a chance for credit unions to score big points from day one. According to a recent Harris Poll, 78% of people are more comfortable with their bank or credit union having access to their personal data than a big tech company like Google or Amazon. Credit unions can use this to their advantage by putting that data to use in a way that makes members feel seen.

The more you succeed at integrating your members, the more likely they are to stay with your credit union for the long haul. As long as credit unions continue to put people first, they can continue to strengthen trust and increase member retention.

Your Team Can Use Data to Make a Difference

A humanized marketing effort can help you focus your efforts on the right targets. Your larger competitors may have bigger marketing budgets, but you have more incentive to make smarter decisions in marketing your products and services.

Rather than sending out impersonal paper mailers or casting a wide net, leverage your people and their time wisely. Focus on making the most of the data you have on hand, and use it to demonstrate to your members that you’re hip to their needs and what’s next in their lives.

Don’t try to look like a big bank: Show the right people exactly who you are and what your team can do to help them get what they want from your credit union.

Humanization: Tech Helps People Connect

Your relationship managers are busy. They’ve got a lot on their plates. To empower them to move quickly and get members what they need (when they need it), credit unions need to invest in marketing technology to help real people parse member data and turn it into actionable items.

Gone are the days when relationship managers and mortgage loan offers chased people down through the phone book. Position your team to succeed with the data you have on hand so you don’t waste your marketing efforts (and dollars) on generic, one-size-fits-all messaging. Instead, let your technology solutions bring your data together so you can use the insights to inform your marketing communications and improve your member experience.

Joe Welu is Founder and CEO of Total Expert. He can be reached at 952-977-8620.