Back in the last century, if we wanted to measure how satisfied credit union members were and what services they expect, we performed a costly and time-consuming manual survey of the membership. Printed questionnaires went out with postage paid return envelopes, and you hoped they came back with valuable insight. Your operational decisions were based on, at best, a 10% return rate.
Also back in the day, you could count on member loyalty. Your credit union was where your members worked. You knew who they were, and maybe even lunched with them in the company cafeteria. You gave them loans their banks weren’t offering them because you included the fourth “C” – Character.
Fast forward to the advent of the internet, and the ability to get immediate feedback on individual transactions. This is great for making members happy in the moment, but the banks your members use as well are doing the same thing. The challenge is gaining any insight into the overall satisfaction and/or the loyalty to your credit union.
Loyalty used to be our bread and butter. We knew, regardless of what decisions we made or direction we went, our members and their families would stick with us. Today, our assumption is members no longer have any loyalty. But how do we know? How do we measure member satisfaction and loyalty?
A newer survey method combines the immediate feedback we want, and aggregates where members are, relating to how likely they are to recommend your services. Net Promoter Score (NPS) surveys are available to track your progress, helping you create raving fans previously known as loyal members. For many years now, the largest companies have used NPS scores as a measure of success. Credit Unions are just now beginning to see the value of investing in this high tech and high touch strategy.
When recently assisting Credit Unions in gaining the insights to improve member satisfaction through various high tech and high touch processes, we discovered consistent tracking helps Credit Unions boost their member satisfaction. Ultimately the entire member experience is enhanced. The goal of NPS surveys and tracking is to turn member feedback into actionable insights and improve overall credit union services.
Simply put, you ask your member to rank, on a scale of 1-10, how likely is it they would recommend your credit union to a friend or colleague? Individual they are categorized as:
Promoters (score 9-10) are loyal enthusiasts who will keep using the credit union and refer others, which obviously fuels growth;
Passives (score 7-8) are satisfied but unenthusiastic members who are vulnerable to competitive offerings; and
Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
To get to the ultimate score, you would subtract the percentage of Detractors from the percentage of Promoters. This score can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).
The idea is to create a benchmark from which you can plan your growth at the same time you know your members are being served, and hopefully loving it. A valid goal in strategic planning would be to improve your NPS numbers from "X" to "Y" within "Z" years. You can then assign this goal and use it to evaluate departmental and individual success. The point is, by focusing on member satisfaction and loyalty, growth can happen exponentially
At a higher level, NPS scores allow the executive team to get insight into what the member experiences, real time so the team can begin focusing on member loyalty and identify areas needing improvement. Combine this insight with strategic and tactical planning and you’ll have a powerhouse financial institution your members will recommend to their friends and family. Using Net Promoter Score surveys or similar, serves to not only benefit the credit union management but the members too, who will notice service level improvements.