SAVANNAH, Ga.–Alliant Credit Union is a purely digital CU with no branches. But that doesn’t mean it thinks in terms of technology. In fact, it’s just the opposite, according to one person.
Sumeet Grover, chief digital and marketing officer with Alliant Credit Union in Chicago, told America’s Credit Unions’ Strategic Growth Conference here that in all of its executive meetings it always “starts with the member impact story.”
Sharing a Story
Speaking on the issue of “Strategic Marketing Outreach: Connecting with Your Membership,” Grover began his remarks by sharing the story of a couple of married members, Mitch and Kay, who had a long relationship with the same Alliant employee who serviced their account. Mitch developed a terminal illness and died, but before passing away he asked the employee, Steve, to “please take care of Kay.”
One Saturday, on his own, he travelled to visit Kay at home to express his condolences—on the tenth anniversary of Mitch’s passing.
“Then they shared some good memories at the kitchen table,” Grover related. “That is why we are in business.”
That was also a member connection.
What CUs Have to Say
In a survey of his audience using the conference app, attendees were asked to vote on why connecting with members is important.
The response getting the most number of votes was “strengthens member loyalty.”
But Grover said the other three options—boosts growth and revenue, provides competitive advantage, and drives innovation—are also correct answers as each helps drive member loyalty.
Insights Slide
Grover shared these four insights:
- Members may feel they generally engage with separate departments rather than a unified institution. The differentiator is connected member experiences.
- Members know that institutions depend on data for personalized engagement. The differentiator is the ability to provide simple and seamless experiences.
- Members expect that they should be able to do anything online that they can do in person or by phone. The differentiator is the perfect blend of humans and digital.
- Credit unions that prioritize “great” member experiences truly connect with their membership, and benefit from member engagement and growth.
The Payoff
In the case of Alliant Credit Union, over the last three years the $18.4-billion Alliant CU experienced 52% membership growth to 830,000 members, with revenue growth between 28% and 55% each of those years.
“All because we focus on member engagement,” Grover told the meeting.
The Macro and the Micro
Grover, who said Alliant CU works with financial expert Suzy Orman at the macro-level as well as with 60 micro-influencers, observed, “The brand you associate with is the brand you will stay with.”
Alliant Credit Union defines its highly engaged members as those who conduct three or more transactions with it per month.
“If you have savings only, you may not log in but twice a month. If you have a certificate, it may not be for the next six or eight months,” Grover said. “So, how do you get those incremental transactions.”
Where the Answer Lies
For Alliant, the answer lies in “digitally engaged, multi-solution” members, according to Grover, who said that if a credit union has made significant investments in its infrastructure, then it is also a fintech.
While the word “innovation” is often used with fintech, the question, said Grover, is just what does that mean? He used Alliant CU’s call center as an example.
“If it’s a simple transaction that can be handled digitally, that’s nice,” Grover said. “But if it’s a little more complex, we let the call center agent handle it. We implemented machine learning on that and spent about $20,000 on (upgrading the technology). In terms of managing, calls in our IVR system grew from 8% to 36%. My goal is 60%.”
But it all about driving members to use technology, according to Grover.
“I will absolutely handle any call and there is no pressure on call center to wrap up a call. It’s expensive,” he acknowledged. “But if member is calling we will spend that time so that at the end of the call we can make sure that member doesn’t need to call again.”
Driving Engagement
According to Grover, Alliant strives to leverage digital innovation, data-driven strategies, and member feedback to deliver timely and relevant content to its members and ensure exceptional member experiences.
It does that with:
- Personalized content that allows members to feel connected to our brand and prioritized by the institution.
- Audience segmentation that helps it gain deeper insights to its members’ activity and product allocation.
- Product conversions that ensure it continues to enhance and offer the best products to the members who will benefit most.
Internal Effort
Grover said Alliant has built most of its tech internally. It also handles its marketing internally, and only turns to external parties if it lacks certain skillsets or knowledge.
Throughout his remarks, Grover emphasized the power of personalization and the consistent experience to members across channels.
“This is not new,” he said. “Financial institutions have been doing this for 20 years. But you have to make sure you have the right combinations.”
And there is a core question to be asked, he said.
“What is the likelihood someone who is engaged with me is willing to expand that relationship with me? We don’t want a product int their hands that won’t help them.”
As noted above, Alliant has enjoyed robust growth, and yet 80% of its members still have an account with a major bank. Focus groups revealed a variety of reasons and even some misunderstandings around what Alliant can do.
“I have to educate my members on what our differentiators are,” he said.
The Clusters
Grover said Alliant CU has broken its members into “clusters” that it then uses to target its marketing campaigns, as many credit unions do. It has discovered that if a member has just one deposit product with it, for example, they are very likely to take another product.
On the other hand, it has also learned if the member has an auto loan with Alliant, there is a 95% probability the member will not take another product.
“Why? They didn’t know they have an auto loan with Alliant. Our attempts to connect not as successful,” he said.
It was that kind of understanding, Grover said, that helped Alliant draw $300 million to a 12-month certificate offer, when its goal was $25 million.
Key Takeaways
Grover offered these three takeaways:
- Listen. “Get to know your members and the ways in which they utilize your platform and offerings in their everyday lives.” As an example, he said three years ago took about nine minutes to open an account. Alliant set a goal of five minutes and now at a little over three minutes.”
- Adapt. “Tailor your strategies to your members’ needs and build trust. Don’t be afraid to pivot as your members’ needs change.” As an example, he cited Amazon and music platforms that use generative AI and algorithms to tailor content. “If you can do it right, it works. If you cannot do it right, do not do it. Our members know we are using their data for personalized experiences. Are you an ally setting them up for success in their financial wellness, or are you just trying to just pitch a product or service?” he asked.
- Enhance. “Engaged members often provide valuable feedback and insights that can inform your tactics for growth and engagement. In my mind this means using that data and saying where do we want to be really good, and where can we be even better than that?” Grover stated. “We have no branches, so we don’t have that one-on-one relationship. But do have insights on the digital channel. There are strategies to build to enhance the member experience? The online experience flow does not flow in other channels. We gave our call center agents the tools, but told them it doesn’t matter what the tool or prompt tells you, the member always comes first.”
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