LAS VEGAS-Call centers at credit unions are dealing with budget cutbacks at the same time increasing numbers of members are calling-or being called-about financial pressures of their own.
That is just one challenge being faced by what many CUs see as a back-office function, even though for many members it's the only front-office with which they have any interaction.
"The entire world leads to the call center; in the past, people would call for balances, so people think that's the calls we are getting," noted Michelle Bloedorn, CEO of Member Loyalty Group. "That's not what's going on there. Anything that's crazy, nutty or weird ends up in the call center. I haven't been in the daily call center for a period of time but it can be brutal."
Speaking to the Credit Union Call Center Conference hosted by the Credit Union Association of New Mexico, the group's CEO, Sylvia Lyon, said of the task before call center workers, "Employees need to think fast and resolve calls to the member's satisfaction."
For credit unions the key strategic issue is ensuring the call center fits into the broader member service delivery model and that above all members receive a satisfying experience.
During the conference credit unions were urged to look to the service experiences being delivered by other providers. Case in point: Simple, formerly known as BankSimple, a solution offered by Simple Finance Technology Corp. Simple essentially seeks to put a better face on banking by creating a cleaner, friendlier interface for web and mobile apps and, in the process, a better experience. Under the company's business model, it seeks to unify all bank accounts and reject fees, instead generating its income by splitting the net interest margin with its partner banks, which control the deposits.
One of the key people involved in Twitter was involved in the development of Simple. Their vision: "We put people first with real service and real support. No surprise fees ever." The company reported that more than 50,000 consumers had signed up before it had even begun formally operating.
It's All So Simple
Bloedorn told the Call Center Conference that simplicity in banking has become a competitive advantage for consumers who are looking for organizations that can simplify their lives-too many financial institutions add unnecessary complications. For most consumers, a trip to a bank or credit union is a chore like getting gas for the car that needs to be completed quickly and simply without problems, she noted, pointing to Simple's focus on the customer and how they interact with the organization.
In terms of loyalty, and measuring loyalty, Bloedorn pointed to what she described as a fascinating interesting project conducted by Bain, a consulting group, whose research found that 80% of organizations think that they create a better customer experience. Bain then surveyed those same companies' customers and found that only 8% of those surveyed agreed with the organizations about their performance.
Bloedorn urged credit unions to recognize that it isn't that profits are bad, but there is such a thing as bad profits. For instance, Costco has an expensive membership, but members/customers deem it worth it in the discounts on merchandise and the service provided. Spirit Airlines, on the other hand, charges $35 for a carry-on bag, meaning $70 in costs for a round-trip, which customers see as a "bad profit."
In financial services, debit card and overdraft fees can also be bad profits, said Bloedorn, noting that fees are one of the top complaints in banking.
"But they are a big income generator for us," Bloedorn acknowledged. "We need fee income for our organizations right now. Our margins are so skinny. Members understand many fees, but others feel unfair to them. It's tough for organizations to wean themselves from bad profits, but the thing is that they can ruin our long-term relationships."
For workers in call centers, that means understanding why fees must be changed and being trained on how to explain the necessity of fees. Bloedorn noted that when insurance giant USAA trains its employees, it requires them to dine on Meals Ready to Eat (MREs) in the wild for a day because the company reasons that employees are talking to military personnel and should understand their lives.
