RANCHO-CUCAMONGA, Calif.—The country is in the middle of an “experience renaissance,” which demands credit unions rethink how they serve their members.
“We are undergoing an experience renaissance across all industries—it’s the movement toward customer centricity,” pointed out consumer finance journalist Jean Chatzky, who said the nation’s businesses, including credit unions, are at an inflection point. “We are there in large part because of the dark age that we're coming out of right now.”
Chatzky, whose remarks came during CO-OP Financial Services’ latest Virtual THINK Forum, said the change is apparent all the way from mega-retailers like Amazon, to small, local restaurants. And while a digital transformation has taken place during the pandemic as consumers flock to their mobile and desktop devices, there has also been much greater attention to focusing on the sales/buying experience.
As CUToday.info has extensively reported, as consumers rely much more on digital for their daily banking transactions, credit unions will need to find a way to deliver via e-channels that same personal service that has set them apart from banks.
Experience Matters
“A Salesforce research report shows 80% of respondents believe the experience a company provides is just as important as their products,” Chatzky said. “McKinsey suggests that a fundamental change in mindset toward customer centricity can lift both the customer and employee levels of satisfaction in addition to generating economic gains.”
Chatzky provided examples of companies within the healthcare industry that are doing just that.
“For example, Cleveland Clinic's patients-first model consistently ranks them as one of the very best hospitals in the United States at every point in a patient's experience,” she said. “Cleveland Clinic care teams combine empathy with a sensitive touch with technology, and in the process they provide more human-centered treatment solutions for their patients. This means they address every part of every patient's experience.”
A Better View
Chatzky noted Humana also views customer service centricity as part of its mission, leveraging technology and data to help them better formulate healthcare plans.
“Humana care teams pull information to get a 360° view of their patients’ lives to give them a better path toward the best possible outcomes,” she said.
Nike, as well, is focused on customer experience, pointed out Chatzky, noting Nike CEO John Donahoe recently told investors a consistent and seamless consumer experience is a focus of the company.
“So, it's not just about selling stuff. It's about providing things that make life better on a daily basis,” Chatzky said.
She said research shows in the past year companies that have been the most successful are the ones focusing on customer experience. She said it is no surprise Amazon tops that list.
A Surprise
But Chatzky also said Kroger is among the leaders, which may be a surprise given its line of business.
“The supermarket chain Kroger saw a 79% jump in e-commerce business in 2020. Think of that, a grocery store chain is now a leading digital business, all in response to customer needs. Like Target and Best Buy, Kroger has seen success by building out there digital service model to provide personalized experience for consumers. Even in very different industries, you can see that the focus on customer services is the common denominator.”
A New Look
Turning to credit unions, Chatzky said it means looking at members in a whole new way.
She said it’s about “defining traditional demographics with a deeper understanding of their daily needs and behaviors…leading to what we call lifestyle banking.”
Chatzky emphasized credit unions that lead with lifestyle banking will uncover greater diversity in opportunities to provide members with more cohesive personalized experiences at the right place, at the right time, and through the right channels.
“This results in a clearer path to growing net income and becoming members’ primary financial relationship,” she said.