eStatements: The Lost Member Communication Channel?
By. Tommy Orton, OMI
For the last decade, credit unions have been working quietly to move their members from paper to electronic statements. This strategy makes sense, since saving in paper, postage and processing are a clear-cut benefit. The downside, however; is that a critical communication channel to credit union members has been severed. Without that “monthly appointment” with members you now have one less opportunity to promote additional products and services to your best customers…the ones you already have. Indeed, if you view eStatements purely as a way to cut costs you may be overlooking a tremendous and growing opportunity.
New Communication Channels
Regarding eStatements only as a cost-cutting measure misses an important part of the equation. Electronic statements enable new ways of working and more informed analytics that bring about a host of benefits that go beyond saving money on paper and postage. By connecting with members in an online world versus the paper-bound past, credit unions now have access to a variety of new marketing and business intelligence techniques that are simply not available using traditional statements. The power of these new analytics — the ability of knowing member interest and being able to segment your demographics and promotions — gives marketing departments a huge advantage with targeted direct mail, email campaigns, and social media strategies. Savvy marketers can more easily craft relevant announcements and promotions based on a more thoughtful understanding of membership and account data.
Where’s the ROI?
Going paperless saves money, but eStatements have an extended ROI when you view them as modern communication tools to drive revenue. After all, the best people to promote new products and services to are the members you already have. And it’s no secret that the cost of bringing in a new member far outweighs the cost of getting an existing member to purchase new products and services. By leaving the traditional antiquated, paper-bound print stream behind you can now look beyond short-term savings and capture additional value by leveraging the hyper-linked features of electronic member communications to better promote, target and sell your services.
A Single Communications Platform
Clearly, communicating with members is not as simple as it used to be. Having a single communication management platform is an essential element to not only save costs, but also to enable new ways of working that increase revenue and build member loyalty. Cloud-based communications management solutions from OMI provide a single platform to manage all of your member communications whether they take form in paperless statements, on the Web, via email or using social media. It is now possible to extend the immediate savings in paper, postage and process by creating more relevant and valuable eStatements that leverage account information to craft more effective promotional and loyalty programs. Indeed, eStatements are more than a short-term cost-cutting tool; they can ultimately be a secret weapon for credit unions to build more profitable and lasting relationships with their members over time.
