Reactivation and growth from unengaged members seems to be one of the hottest topics in credit union marketing circles. Why?
Most credit unions just received their annual report on member profitability. Executive Teams and Boards are staring at a section that lists the percentage of their members that are considered "unengaged" by the profitability model. From the clients we've talked to, the percentage is staggering - ranging between 20% and 30% of total members. To put that in perspective, if you are a 50,000 member credit union, you’ve got 10,000 to 15,000 of those members unengaged!
So now the bigger debate - whose fault is it that most credit unions have a significant number of unengaged members? The member’s or the Credit Union’s?
I recently found out that a colleague had gotten his last car loan indirectly from a credit union through his car dealer because it offered the lowest rate. He took the credit union up on the offer and put $5 in an account to get the loan. After the loan was paid off he became the typical “unengaged” member. When I asked him why he didn’t do more with the CU he replied "I heard from the CU once or twice over the course of the four years when they sent me a paper newsletter. As far as I’m concerned, it’s their job to let me know what products and services they could offer and they didn’t do a very good job."
Key take-away, don't assume members know your product set as well as you do and that they all use the same communication channel.
Want to get engaged?
A recent article on the Bank Marketing Strategy Blog "Collecting Behavioral Insights Increases Value of Relationship" states that best-in-class financial organizations supplement traditional new account opening with an onboarding process that includes a short survey of needs and behaviors of the new customer. While this survey can also measure customer satisfaction with the new account opening experience, most banks focus on gathering insights into the reason for opening the new account, communication channel preferred, the financial goals of the customer and what financial services the new customer holds elsewhere.
In addition, some banks ask questions to determine key life events that may be on the horizon and determine who in the household will be in charge of managing the new account.
Forget whose fault it is!
If you believe the saying that "It is cheaper to get an existing member to do more with you than it is to find a new member", then marketing should be focusing heavily on the unengaged number in their reports.
As Jim Marous points out in the Bank Marketing Strategy article:
A deeper knowledge of the customer's financial goals, channel preferences, product usage, preferred channels and reason for coming to your institution is needed to personalize the onboarding communication and move the customer from product engagement to relationship entrenchment.
Think about it, an unengaged member could be viewed as a new member that may not even know about all the products and services available to them. The same on-boarding email engines and surveys used to educate new members could be turned towards unengaged members to learn more about their original reason for joining the credit union, gather current financial needs and to introduce them to the benefits provided by the CU. Click here to see some actual onboarding examples from one of our clients.
Bring us your Tired, Poor and Unengaged.
Technology offers a fast, inexpensive way to reach your unengaged members. We’ve built an online survey to see what we can learn from unengaged members to help credit unions just like yours. If you’ve got the list of unengaged members and can supply ones that you have email addresses for, we’ll supply the online survey and email engine to try and reach out to them. We’ll survey you members and provide you with the feedback. It’s FREE for the first ten credit unions that take advantage of the offer. Simply go to our Onboarding page and click "Ask for more info". We'll contact the first ten credit unions that apply and get them started.
Want to share your re-engagement strategy? Let us know about it in the comment section.