By Frank J. Diekmann
There’s one trip you don’t need to be taken on. You know the one, that mythical 35,000-foot view that consultants and speakers and the authors of various “expert” opinion pieces are always happy to share. Gazing down from way up there we can clearly see members have been rating their “satisfaction” with their credit unions below that of bank customers in the American Consumer Satisfaction Index.
As CUToday.info has reported extensively, it’s a trend that should have cooperative leaders everywhere sleeping with at least one eye open, as the nation’s financial co-ops have now been ranked behind those big, bad banks we are always being told no one likes for three years now in the survey.
But what about what’s happening at ground level where credit unions live and work and serve members? Instead of view, how about a little more do? CUToday.info plans to do just that.
Next week we will be launching a week-long series that seeks to answer some of the specifics around what’s taking place and, more importantly, what CU leaders can do in response.
If you’re thinking it all comes down to having the deeper pockets to make investments in technology, especially digital services, you’re only partly right.
Among the more interesting observations made as part of our reporting was this from Bill Handel, who leads the research and analytics practice at Raddon.
“Not only have banks been making significant investments into leading-edge digital services, they are also telling consumers they’re easy to use,” observed Handel, who said major banks are doing a good job of persuading consumers they are high-tech and simple to work with.
A ‘Real Challenge’
“At Raddon, we just did some research around the Millennial generation, and what we found is they don’t necessarily have a negative perception of credit unions, they have no perception of credit unions,” he continued, adding that the data also show the old notion of not being able to trust your bank is fading away. “That's a real challenge, because what's happening is the largest banks are spending very significant marketing dollars to build an image they make your financial life better and easier.”
Which, as you may recall, is supposed to be what credit unions do as part of that people helping people thing.
Handel further noted Raddon data show Millennials are favoring big banks as their FIs of choice.
What’s so fascinating and troubling and potentially promising in Handel’s remarks is you can’t bring more than two CU people together for even a cup of coffee before someone says something about “telling the credit union story.”
While all the John Grishams and Nora Roberts of Credit Union Land are weaving their tales, maybe it’s time to question what comes between the “Once upon a time” and “The end.” The only story many credit unions tell is some version of that “dozen workers who pooled their savings” in a cigar box/coffee can/desk drawer to get the CU chartered. It’s a nice warm and fuzzy that feels good.
Let’s Start Editing
But if Handel’s observations are on target, the story needs a lot of editing. As in editing that demands two things: Starting and Over. Members need to be told how easy the credit union is to use, how convenient it is, how state-of-the-art. They need to be told and told often.
There was some recent research that revealed if employees are told often enough that they are a “top place to work,” they will believe it, even when it’s not true.
So, while investments in tech are necessary, the ROI also comes in how members perceive the credit union. Because warm and fuzzy may feel good, but new members who borrow and use your CU’s cards for payments feels even better.
Frank J. Diekmann is Cooperator in Chief of CUToday.info and can be reached at Frank@CUToday.info. Mr. Diekmann is also author of several new book, including the brand new “The Last Lyric,” a humorous satire about a murder investigation at the Rock & Roll Hall of Fame in which every line of dialogue is either a classic pop/rock song title or lyric. Available on Amazon, Apple iBook, Barnes & Noble and Smashwords. Mr. Diekmann is also author of a non-fiction compilation of the very best & worst he has seen and heard in covering more than 500 CU meetings and conferences, “501 Name Tags: How Everything You Need to Know About Business Can Be Learned at a Conference & Forgotten in the Trade Show.” It is available on Amazon, Barnes & Noble, Apple, Lulu, and Smashwords.