welcome to: new member onboarding - cuna councils€¦ · welcome to: new member onboarding we will...
TRANSCRIPT
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Welcome to: New Member OnboardingWe will begin promptly at 1pm CT
Want more?August 24: Increasing Member Loyalty
Member loyalty is arguably the most important factor for credit unions today. It costs 5X more to find a new member than keep an existing one, yet it’s estimated
we spend 44% more on acquisition than on retention.
Hear from 4 credit unions who have harnessed the power of member loyalty.
Register Now
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Meet Your Speakers
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Intentional OnboardingJosh McAfee, Vice President of Marketing
Leaders Credit Union
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We’ll cover• Dedicated onboarding flow• Effective segmentation• Success metrics (KPIs)• Onboarding ≠ selling, but involves it
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Quick Profile
• Headquartered in Jackson, Tennessee• Chartered in 1957• Operations in three counties separated by 70
miles each (soon to be six counties)• $300M assets• 40,000 members• 1.12% ROA; 12.18% Capital• Many consecutive quarters 100%+ loan-to-share
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The Loyalty Team• 7-person crack squad
• 1 manager, 2 in sales, 2 in service, 2 processors• Program has grown from one staffer in 2012• Originally developed as a response to
indirect lending growth
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Workflow• Traditional new member mailing
• Local printer warehouses inventory and receives data file to automate delivery
• ALL members receive a “signed” welcome card from our staff
• Email educational series in first 300 days of membership
• 7 messages triggered by # days past join• Separate “paths” for direct and indirect
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Welcome Card
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PERKS offers
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Effective Segmentation• Loyalty applies logic to in-person calls
• Minimum credit quality thresholds• Refinance opportunities• Competitor checking relationships
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Segmentation (cont’d)• Warm welcome response dictates follow-
up• No-answers and cold-shoulders move to the
bottom of the list• Expressed interest and purchase promises are
documented for all staff to view• Contact management software drives
daily schedule of communication
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Meaningful Metrics• Length of membership is key
• However, first 120 days are indeed critical• Look at national averages to provide context
• Average checking rel. = 6 years• Average auto loan rel. = 28 months
• New money or buyout?• New money indicates you’re relevant.• Recapture indicates you’re selling to the need.
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Metrics (cont’d)• Consider elements staff can control
• Volume and yield are controlled by outside factors
• For “young” onboarding programs, watch trends (e.g. average PPM/H, average balance, etc.)
• Direct vs. Indirect matters• Don’t expect comparable performance• Direct chose you; you chose indirect
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Onboarding ≠ Selling• …but the two are related.
• Great onboarding should yield higher sales• Treat recapture/refinance as educational
opportunities for the new member• Prioritize service to drive brand loyalty• Context is key
• Is your onboarding performed by desk staff or in a dedicated environment?
• Is trust implicit or yet to be earned?
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Josh McAfeeVice President of Marketing
Leaders Credit Union
731.410.2068 | direct
731.803.0708 | [email protected]@joshismyntcue
Questions for Josh?
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Importance of Onboarding
Royce NgiamAssistant Vice President, Marketing
Partners Federal Credit [email protected]/in/roycengiam
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• Over 1 in 3 active Disney Cast Members, Employees, and Imagineers
• Senior Executives to Hourly Attractions Attendants
• Over 127,000 Members
• $1.4 Billion Assets
• 13 Branches, California and Florida
There’s only one metric that matters, everything else is nice to know.
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Confirmation Bias – Peter Watson
• Online Banking (Mobile Banking, Remote Deposit Capture, <whatever vendor is trying to sell you>) is a sticky service.
• People who move are more likely to leave the CU.• It’s cheaper to keep an existing member than acquire a new
one.
The tendency of people to favor information, true or not, that confirms their preexisting beliefs.
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Partners Attrition Study• Attrition as a catalyst• 2/3 of the closed accounts were to members in our lowest
engagement deciles.• 58/43 distribution of mobile banking users between closed
accounts – no correlation• 35/65 distribution of online banking users between closed accounts
– would seem that online banking users are more likely to attrite!• Over ½ the members that closed their accounts did so in the first 2
years. Over 1/3 closed in the first year.
Products and services don’t make members engaged and loyal.Effective onboarding is key – set them up for success.
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Welcome PON• Every Monday• 146.85% Total Open Rate• 43.83% Total Click Thru Rate• 24.48% watch the Partners Difference
Video• 33.33% learn about Mobile Banking• 11.36% watch our ATM Video• https://www.partnersfcu.org/resFiles/
media/emails/pon-welcome-2016.htm
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Monthly PON• Mobile Optimized• Animated• Encourages Engagement• Relevance• Timing
• Results • Unique Open Rate – 29.60%• Total Open Rate – 57.38%• Click- Thru Rate – 17.69%
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• What are we advertising?• eMail Performance
• 24.94% Open Rate (30.27% avg)
• 4.40% Total Click Thru Rate (3.56% avg)
• $6,963,089 in mortgage balances
There’s only one metric that matters, everything else is nice to know.
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Branch Participation 2-2-2• 2 Days – Handwritten Thank You Note• 2 Weeks – Service Call• 2 Months – Sales Call
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Closing Thoughts• Engagement is the goal, the product sales will become easier
and more organic.• Messaging must be relevant and timely, with digestible
content that benefits the member.• Onboarding is a series of activities, not a one shot or matrix
deal.• Consider your sustainment plan – it’s as important as your
onboarding.
The uninformed must improve their deficit,or die.
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Royce NgiaimAssistant Vice President of MarketingPartners Federal Credit Union
(818) [email protected]
Questions for Royce?
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5 Essential Onboarding Strategies for Credit Unions
Presenter:Sandi Carangi, CEO
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About Us
• $75 Million in Assets• Nearly 10,000 members• Community Chartered
– Mercer County in Western Pennsylvania• Originally chartered as a teacher’s credit
union in 1957
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Onboarding MethodologyRule #1: First 30 to 90 days are most important.
Ways to cross-sell without cross-selling: be helpful, share your expertise, answer questions.
Rule #2: Online banking and online bill pay are the ‘stickiest’ services.Source: Fiserv 2010 white paper: Developing a Successful Onboarding Program to Drive Customer Loyalty and Profitability.
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5 Best Practices for Cross-Selling• Focus on what you know – a lot – you are the expert
(helping members save money and providing valuable tools)
• Selling without selling – education – handout information
• Generational markers – life stages • Overcoming objectives – courteous and helpful
translate to competent and knowledgeable • Follow up is crucial – create email template that
answer frequent questions, letting you fill in the blanks with information to members
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Preferred Banking Method• Internet Banking (laptop or
PC) – 32% (31% in 2014) • Branches – 17% (21% in 2014) • ATMs – 13% (14% in 2014) • Mobile (cell phone, Blackberry,
PDA, iPad, etc.) – 12% (10% in 2014)
• Mail – 7% (6% in 2014) • Telephone - 5% (7% in 2014) • Don’t Know - 13% (11% in
2014)
ABA Survey: More Consumers Turning to Mobile Banking - Source: American Bankers Association (ABA), July 2015. http://www.aba.com/Press/Pages/081115MobileBankingSurvey.aspx
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Relationship Channels
Preferred Banking Method of US Consumers, by Age - Source: American BAnkers Association (ABA) survey conducted by IpsosPublic Affairs as cited in press release, Sep 20, 2010. More Products = Greater Stickiness - Source: Bancography
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Onboarding Strategy1. Timing is Everything
• Within one week• Within 30 days• Within 60 days• 90 days and beyond
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Onboarding Strategy2. The Message
• Relevant • Valuable• PS – Offer Incentive• Ideas
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Onboarding Strategy
3. Follow up is essential• Respond to requests within 24
hours or sooner• Preferred communication channel
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Onboarding Strategy
4. Continue to build relationship –• Team effort• Teller pop-up screens• Family and co-worker incentives• Promotional handouts
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Onboarding Strategy
5. Measure Results and Make Adjustments • Tracking system in place• 2 months/6 months/1 year• National average PPM is 2.2• PPM goal 3 – 4 • Know your credit union PPM PPM Source: Callahan & Associates 3/12
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Onboarding Strategy
Only 40% of credit unions actively engage in onboarding initiatives
• Develop a process• Example letter • Example marketing materials
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Sandi CarangiChief Executive OfficerMercer County Community Credit Union
(724) 981-9410 [email protected]
Questions for Sandi?
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Additional Questions and Discussion
Thank you!
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From New Member to Loyal Member
August 24 at 11 am CT: Increasing Member Loyalty
Member loyalty is arguably the most important factor for credit unions today. It costs 5X more to find a new member than keep an existing one, yet it’s
estimated we spend 44% more on acquisition than on retention.
Hear from 4 credit unions who have harnessed the power of member loyalty.
Register Now