By Gabe Krajicek
Credit unions often pride themselves on their superior member service—and they should. According to the recent Consumer Banking Insights Study, 68% of credit union members say their member service is an advantage when compared to other institutions. Only 38% of megabank customers say the same.
But, that doesn’t mean credit unions have nothing to worry about. Megabanks have caught on to the fact that consumers like great customer service and have taken major steps to improve. According to J.D. Power’s 2014 U.S. Retail Banking Satisfaction Survey, customer satisfaction with big banks improved by 40 points this year compared to 2013, nearly closing the gap between big banks and their smaller competitors, who used to hold a significant lead.
How can credit unions hold on to their reputation for stellar member service, even with comparatively limited resources and time? The answer lies in an old—but effective—technique: mystery shopping.
Many banking services companies provide mystery shopping help. As with most mystery shopping programs, the company has trained, knowledgeable screeners call the institutions with various questions and problems, record the calls, and then score the representatives’ performance and, in essence, the consumer experience.
The mystery shopping service can usually be provided on a quarterly basis, for multiple branches, and at a frequency level determined by the credit union in order to ensure consistent performance across the board, throughout the year.
Once gathered, the monitoring results provide several benefits:
1. Employee performance data. The results can be used to identify overall performance trends, including top-performing customer service associates and those who may be in need of additional training. Additionally, many institutions use the results to help determine staff promotions and dole out incentives through employee rewards programs.
2. Error discovery. Mystery shop services can catch and flag technical glitches that the credit union may miss. For instance, a phone system error could direct consumers to the wrong department without leaders realizing it.
3. Targeted training insights. Mystery shopper services are able to pinpoint the exact areas where additional employee training may be needed. Financial services providers are then able to tailor their training programs to specifically address those areas, boosting the effectiveness of the training and reducing the amount of time employees must spend in the classroom and away from their jobs.
4. Increased sales. Mystery shopping programs can help leaders determine where acquisition efforts may be falling short, so adjustments can be made to fix the problem. Finally, clear expectations, employee accountability, and results-based rewards can motivate customer service representatives to cross-sell more often.
5. Well-serviced members. Happier members are easier to retain and will often provide referrals. Additionally, a reputation for stellar member service can help convince prospective clients to choose that institution.
Gabe Krajicek is CEO of BancVue, Ltd. in Austin, Texas, which offers a nationally branded rewards checking account program. Mr. Krajice can be reached at gabriel.krajicek@bancvue.com.