{"id":56433,"date":"2023-02-21T08:00:35","date_gmt":"2023-02-21T13:00:35","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=56433"},"modified":"2023-02-21T15:31:08","modified_gmt":"2023-02-21T20:31:08","slug":"member-retention-the-top-credit-union-priority","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/member-retention-the-top-credit-union-priority\/","title":{"rendered":"Member Retention: The Top Credit Union Priority"},"content":{"rendered":"

Members are the lifeblood of your credit union. That\u2019s why CUs pour so much effort into acquiring new ones, with marketing campaigns and promotions designed to get new members to open accounts.<\/p>\n

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But while member acquisition is crucial to your credit union, there\u2019s something that\u2019s arguably even more critical: member retention. Although it\u2019s important to find new members, you shouldn\u2019t focus all of your efforts there, lest you neglect your responsibility to continually provide remarkable member services and personalized financial solutions.<\/p>\n

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You\u2019ve probably heard the expression \u201cmake new friends but keep the old\u2014one is silver, the other gold.\u201d In the case of credit unions, new members are silver, while existing members are 24 carat gold.<\/p>\n

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Why should your credit union prioritize member retention over member acquisition? Let me count the ways\u2026<\/p>\n

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It costs more to acquire new members than to retain existing ones<\/h2>\n

This is a big one: keeping credit union members loyal and satisfied is a lot cheaper than generating new members.<\/p>\n

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You\u2019ve probably heard that it costs five times as much to acquire a new customer<\/a> as it costs to keep an existing one. While credit union membership is a little different from customer loyalty<\/a>, it\u2019s still true that member retention is far more cost-effective than member acquisition. CU member retention has also become more financially vital as big banks and new fintech \u201cdisruptors\u201d muscle their way into other areas of the financial and banking industry.<\/p>\n

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In short, building lasting relationships with your members and inspiring loyalty is more important than ever.<\/p>\n

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Member churn can kill your credit union<\/h2>\n

Your members are an investment. And it\u2019s important to nurture and grow that investment by catering to members\u2019 needs and building mutually beneficial relationships that stand the test of time.<\/p>\n

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While some churn is inevitable, too much can destroy your credit union and make it impossible to carry on. That\u2019s why one of the biggest mistakes that any credit union (or, really, any company) can make is to become complacent.<\/p>\n

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Don\u2019t take any members for granted and assume that they\u2019ll stick around forever. Focus on satisfying members and giving them reasons to remain loyal. The more that you invest in members, the more that they will invest in you (more on that below\u2026)<\/p>\n

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Long-term members invest more in your credit union<\/h2>\n

The longer you retain a member, the more opportunities you have for additional investments. The next time a satisfied member needs money for an auto repair, a family vacation, or bill consolidation, they\u2019ll turn to their trusted credit union to find financing.<\/p>\n

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For non-financial businesses, just a 5% increase in customer retention rates<\/a> can lead to a 25% to 95% increase in the company\u2019s revenues. While financial institutions are unique from other companies, it\u2019s still been shown that returning members will invest more in your credit union. Loyal, satisfied members will keep coming back, which provides a huge return on investment for your credit union.<\/p>\n

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Retention rate is a reflection of member satisfaction<\/h2>\n

There are many metrics you can use to gauge member satisfaction. By using a CU member experience management solution<\/a> like Sogolytics, you can gather important member feedback, including Net Promoter Scores and Member Satisfaction Scores alongwith insights through Key Driver Analytics and Text Analytics.<\/p>\n

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In addition to those important metrics, your member retention rate is one of the simplest, clearest measures of member satisfaction. After all, satisfied members tend to stick around, while unsatisfied members tend to take their business elsewhere. Of course, people may leave their credit union for reasons that are unrelated to satisfaction (such as relocating and choosing a different regional financial institution), but –<\/p>\n

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Retained members can become advocates for your credit union<\/h2>\n

This is where member retention can actually fuel member acquisition.<\/p>\n

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If you delight your members, not only will they stick around, they\u2019ll tell their friends and family members all about it! The next time someone asks them where they bank, they\u2019ll recommend your credit union. If they get married, they might convince their partner to open a joint checking account. And when their children are old enough, they\u2019ll help the kids open up their first savings account at your credit union.<\/p>\n

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Top ways to improve your CU’s member retention<\/h2>\n

At the core of member retention and engagement is member satisfaction. So here are some steps you can take to ensure your credit union gains a competitive advantage by increasing your retention rate:<\/p>\n

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