Unengaged Members – Rekindle the Flame with Technology

By Ron Daly, DigitalMailer, Inc.

Too many credit unions report staggering numbers of “unengaged” members – anywhere between 20 percent and 30 percent, according to the clients we’ve talked with. And these members can directly impact your profitability. Consider this scenario: If your credit union has a membership of around 50,000, your unengaged members could number 10,000 to 15,000 – that’s a lot of untapped opportunity!

Maybe they joined to get a special CD rate, or signed up at a car dealer for a great auto loan. Some have probably never even set foot in your branch. But do they really want nothing more to do with your credit union, or do they simply not know what you offer?

So who’s fault is it that members are unengaged? The credit union’s or the member’s?

Reconnecting with communication

Credit unions beware: You may know your product set and the benefits of using your financial services, but don’t assume your members do. Most likely, they don’t. Engaging members boils down to effective communication.  But communicating with members today can be more complicated compared with the past – lots more messaging channels and choices.

It’s likely you’ll come up short when trying to access the personal data or preferences of unengaged members. One solution: stop viewing them as current members and start treating them like new members. Rekindle the flame by stepping up the courtship. The same onboarding programs that are used to welcome and educate new members about your credit union – using email engines and surveys – can be modified for reaching out to those who are inactive. Use these tactics to learn why these members joined your credit union, discover their current financial needs, and re-introduce them to the benefits provided by your institution.

Studies have shown that best-in-class financial institutions supplement account openings with short online surveys to learn the needs and behaviors of new customers, including their satisfaction with the account set-up experience, the communication channels they prefer, what financial services they have at other institutions and their financial goals. Why not survey your unengaged members in the same way? You’ll find the information collected invaluable as you work to reestablish these relationships.

Putting some variety in the communication channel

The most effective communication programs use a multi-pronged approach, as credit unions recognize that connecting with today’s on-the-go consumer must include a variety of channels. No one method works better than another when reaching out to unengaged members; in fact, the more channels you incorporate to deliver messages, the more success you will achieve. And with today’s technology, you can make your marketing campaigns most effective by combining different delivery options.

Recognize email marketing’s strengths:

Communicating by email remains one of the most cost-effective and time-efficient messaging channels – especially given the high number of people who are now online.  One common misconception is that email is free. Not so when you factor in the cost of losing your members’ attention. Inundating members with unwanted or irrelevant messages can backfire, damaging the likelihood for reengagement success, and possibly, your credit union’s reputation.

As consumers become more tech-savvy and time pressed, they don’t want to read offers they don’t feel pertain to them. It’s important to take into account members’ opt-in/opt-out choices, messaging preferences, mobile abilities, and known attributes, just to name a few.

Enhancements in technology have made developing and managing email marketing campaigns simpler – and the need for a reliable email marketing vendor more critical. For example, look for solutions that send a series of email messages that can be automatically delivered to select members on a pre-determined schedule – weekly, monthly, or triggered by member actions. Today’s  technology allows for easily personalized messages by setting up dynamic content that changes names, simple text, images or even full layouts based on a member’s attributes. Make sure your email vendor provides spam checkers and delivery systems that ensure your message actually made it to the recipient’s inbox, as well as methods to track and measure responses.

Add mobile to the mix:

More than 80 percent of American adults own cell phones – a fact that is markedly changing how people interact. The fast-growing smart phone market, which makes up 35 percent of all U.S. cell owners, is seeing owners use their phones for a much wider range of purposes.  As these devices become permanent fixtures in the pockets, backpacks and purses of consumers of all ages, credit unions are finding success in delivering their messages and transaction notices right to members’ phones, no matter where they are or what they are doing.

Today, you can send alerts containing valuable information about your services, related promotions, account notices and emergency messages right to the palm of your members’ hands 24/7. For best deliverability rates, we recommend sending text messages via SMS rather than SMTP.  And make sure your vendor has the ability to send messages to cells and smart phones on any network.

Remember that text number is also a working phone number:

Relationship building is a major focus by credit unions as they seek to create differentiation from the big banks. Why send an email or letter when you can pick up the phone and go a long way in tying members to your organization?  Automated voice calling systems are being used to add that personal touch in outbound calling to select members. The latest in new member onboarding programs is to deliver a recorded “Welcome to the Credit Union” call to all new members from the CEO. Advancements in account alerts are allowing members to enroll for a personal phone call when specific activity occurs on their account.

Join in the social media conversation:

Including social media in your efforts can reap big rewards, especially for attracting younger and highly desirable consumers – a key reason why more credit unions are recognizing social media’s benefits and are planning to increase their use of the technology in the coming years. It’s also an effective way to generate “buzz” through word-of-mouth marketing.

But the changing nature of social media takes a serious level of commitment. Keep your posts current by setting aside time to work on social media on a regular basis. View social media as a conversation and create your content to match. To keep people’s attention, the dialogue should be lively and interesting, and avoid too much self-promotion. Rule of thumb: one promotional message for every eight or nine non-promotional posts. By integrating it into your other marketing tactics, social media helps make all marketing components stronger.

Creating a powerful combination

Today’s consumers expect personalized and relevant messages from the organizations they do business with – in fact, they will welcome them from those that recognize and adhere to their preferences. To best reach members, including the unengaged, credit unions must find a good balance between direct mail, email, mobile, voice calls and social channels. Digital communication advancements have added more avenues to reach out to prospects and members, and more tools to customize communications. Working together, these channels combine to create an efficient communication program that can attract the members you want – whether they are new, existing or unengaged. The technology is there – it’s up to you to take advantage of it.