Please Wait a Moment
X

Blog

11Jun

Data Analytics: Now's The Time To Up Your Investment

For most credit unions, the concept of using data analytics to better meet members’ needs is not an unwelcome innovation. With a reputation for hands-on service, it should be no surprise that the majority of credit unions have strategically committed to using digital services and data analytics to:

  • Serve members
  • Acquire new members
  • Increase sales of products and services
  • Make credit decisions

06_Jun_Week_2_Up_Your_Investments_Blog

Many are also prioritizing and committing new resources to credit union data analytics, decisioning and improving operations. To compete on a level playing field, they’ll also need to concentrate on marketing strategies which support growth, income creation, and lowering expenses.

Real Results from Data Investment

Figuring out the types and quantity of data which should be collected and analyzed is a complex process. Credit unions have historically been focused on servicing their members, so data has traditionally been limited to account-level information. But if the goal is to gain market share, increase income/capital, and enhance their brands, a different approach is required.

Here are three ways the fastest growing institutions, like Illinois-based Baxter Credit Union, are using data analytics to improve their marketing, sales, and service results.

  1. Every offer is a targeted one. Whether someone is looking for a home, car loan, or reviewing retirement options, that data is captured and used to send them the right response – on the right device to offer them solutions, including pre-approvals. This leads to improved response rates.
  2. Performance data is used for member insight. Analyzing their own and third-party data, credit unions are learning how to increase their performance rates by looking at issues on everything from risk to delinquencies. From the member side, they’re looking to data to show them where there are service interruptions or service performance needs. Does their social media analysis provide insight into what members don’t like about their digital experience? How do they rate their online interactions?
  3. A member’s positive experience still ranks #1. Whether it’s over customer wait times or increased security, one in five customers who switch financial institutions do so because of a bad service experience. Data analytics-driven credit unions are better equipped for retaining members through positive online and in-person interactions. For example, they survey their members for feedback and use that data to improve the overall member experience.

What all high-performance credit unions deeply understand is that data analytics is a dual-purpose endeavor used for servicing members needs and improving their organization’s results. Put another way: they know that credit union data analytics is the path to a hyper-personal banking relationship and the way to improve their marketing efforts and sales operations.

So, Where to From Here?

Many credit unions are making increased investments in tools, data models, and the skills needed to create a better use of data. These investments bode well for improved growth and customer service. Those who aren’t using data analytics may point to hurdles like a shortage of in-house expertise, lack of financial resources, or the inability to obtain valuable analytical insights, but these arguments will not prepare them for future (or, for that matter, present) competitiveness.

All credit unions must embrace today’s data-driven concepts and strategies if they hope to effectively compete in an ever-evolving financial world. Their growth and heightened member experience are dependent on it.

About the Author

Related

Voice-First Devices: Why People Love Them And How Credit Unions Benefit.

Even Amazon is surprised by how much people love Alexa. The enthusiasm that resides in the company’...

Read More >

Growth for Growth’s Sake!

Growth for Growth’s Sake is what every Credit Union should be seeking!

Read More >
Find Out Why Digital Banking Will Never Be the Same

Find Out Why Digital Banking Will Never Be the Same

One of the biggest financial stories to emerge from the pandemic has been the forward jolt to digita...

Read More >

No Time To Be A Tortoise: Credit Unions Are Running Out Of Time To Catch Up

“We are not moving fast enough. We need to move 2x or 4x faster,” says John Janclaes, CEO of the $...

Read More >

Budget Season: What It Takes To Win Hearts, Minds, And Wallets

Through ups and downs, thick and thin, traditional and emerging schemes, one thing remains constant ...

Read More >
A Quick Guide to Credit Union Member Acquisition Costs

A Quick Guide to Credit Union Member Acquisition Costs

In a perfect world, the reputation of any given credit union would precede it, and people would floc...

Read More >

About Us

Best Innovation Group, Inc is a technology innovation and development company catering to the financial industry. We invite you to join the hundreds of financial institutions that have already worked with our team of experts in designing technology solutions to fit their growing needs.

Contact Us

Toll Free: 877.244.4964
Office: 813.377.4963
Fax: 813.425.2390

Subscribe To Our Mailer