Credit unions: You must sell or you will die
There’s a terrific scene towards the end of Star Wars Episode VI: The Return of the Jedi (indulge me and my not-so-subtle inner nerd here for a moment!). The evil Emperor Palpatine, after watching Darth Vader and son Luke Skywalker duel nearly to the death, learns he cannot turn young Luke to the Dark Side. His sinister leer turning to a hideous snarl, Palpatine readies his Force Lighting and hisses “And now, young Skywalker, you will die.”
Mega-cool movie moment. Now, get ready for the jump-cut to credit union land. I’m not quite as evil as Palpatine, but I’m here to tell credit unions just as surely, if you don’t sell, you will die.
Selling. Cross-selling. Up-selling. Member engagement, for the more refined. Whatever you call it, your credit union must do it. We’ve sounded the bells on this for well over a decade now and the tipping point is passed and in the dust. If your credit union is still a mere order-taker and glorified check-cashing outlet for members, start looking through tombstone catalogs now.
I work with credit unions, large and small, across the nation. I also mystery shop a good number and have for years. I can safely tell you that there is a gap measured in light-years between credit unions that actively engage with their members and those that do not. We can also apply this tenet to the banking world. Financial institutions that take the time to train their employees on customer engagement will develop deeper bonds with consumers. And make no mistake about it – it is a choice. Your credit union, regardless of size and scope, can freely choose not to engage members. This choice is business suicide, but it is your choice.
Just how important is selling? Consider the following from a recent Gallup study:
One in every five bank customers opened up a new account or signed up for a new service from their bank in the last six months. The vast majority of these bank sales came from customers who already planned to open an account or buy a new service — the bank did not need to do any marketing with these customers, since they were going to open an account with or without any prodding.
Even more importantly, an additional 13% of customers discussed buying something new, but opted not to do so. This points to two important groups of potential customers with whom banks are missing opportunities:
- Those who are thinking about opening an account, but who need a nudge from the bank to take action. This type of customer currently accounts for 33% of bank sales.
- Those who aren’t thinking about opening an account at all, but who are moved to do so with a little push from a bank. These folks account for a small 8% of bank sales.
Obviously, credit unions miss out on similar opportunities with members. All they need is a little “nudge” in the form of refined member engagement.
So, what can a credit union do if they don’t have the selling mindset? First, the executive management team must realize that their employees are the bridge between the credit union’s brand and its members. In reality, there is no discernible gap between employees, brand and member engagement. All offer the same look and feel and all look for ways to interact with members in a positive way. Employees must engage your members using the skills they acquire through member engagement training. This specialized training often covers living the brand, connecting with members on a personal level, looking for and using connection cues and tips and tactics for engaging members.
Many credit unions are already well on their way to becoming truly elite member engagement machines. Others are making the effort. Sadly, however, a number either don’t see the writing on the wall or simply do not care. To all three groups and especially the last, I say again, you must sell or your credit union will die.
Don’t let that happen. Learn more about member engagement. Use The Force if you have to – just sell!
