|Posted on September 13, 2019 at 5:20 AM|
By - Karan Bhalla (CEO, CU Rise Analytics LLC)
Financial consumers today have choices – at least 10,000 when it comes to financial institutions, to be more exact.
That’s why, when you secure a new member, retaining them is so important. Between 25-40% of new members leave a credit union in the first year. Consider this:
• It costs far more to acquire than retain a member.
• You are much more likely to be successful selling to an existing member than a new one.
• Loyal members are more likely to adopt new products.
• Customer satisfaction increases significantly with regular follow-up after account opening.
So, what can credit unions do to preserve those ever-important member relationships?
Study after study shows effective onboarding is key – with emphasis on “effective.”
What makes an onboarding program more effective? The most powerful weapon is the one you already have: your data.
Data-driven strategies are the secret weapon for onboarding programs that are relevant, targeted, and highly successful. Without tapping into your data resources, you risk losing time and resources on efforts that don’t produce the right results.
The first 90 days of the new member relationship are critical. This is the window of time to reinforce the member’s decision and cement a long-lasting bond.
And remember, the days of seeing your members in the branch are dwindling. In 2016, approximately 40% of Americans said they hadn’t visited their bank or credit unions in past six months – and the trend has continued to accelerate. Your onboarding program should be largely digital, and engage members that may never walk through the door.
Here’s an overview of what the first 90 days of a data-driven onboarding plan built by CU Rise might look like.
Effective onboarding is about more than just cross-selling. When done right, it fosters a deep and lasting relationship and builds greater satisfaction overall, including with the products members already use.
We can help you create a highly personalized and much more effective onboarding plan – but one that feels almost effortless because it uses the right tools and technology.
Request a free consulting session here!
This article was originally published on CUInsight.
Categories: News Room