ANAHEIM, Calif. – Technology has led to heightened expectations by consumers, meaning credit unions not only have to be aware of changes in the marketplace, they have to be ready to act upon them.
That was the message from Maxwell Luthy, director of trends and insights for Trendwatching.com. The New York City-based company, founded in 2002, scans the globe for innovations. Luthy said tracking trends helps companies meet and surpass consumers’ expectations.
“When I say we track trends, that does not mean fashion or fads,” he explained. “A consumer trend is a new manifestation – in behavior, attitude or expectation – of a fundamental human need, want or desire.”
The first time someone uses Uber, it instantly changes their expectations, said Luthy, noting users of the ride-sharing service now find waiting 10 or 15 minutes for a taxi to be too long. “With so many innovations coming, expectations change at lightning speed. It has created an expectation economy.”
At the CUNA Marketing and Business Development Council’s recent Annual Conference here, Luthy listed three expectations CUs need to be aware of:
Expectation 1: Everything is seamless. Consumers do not expect to hit any roadblocks, and if they do, they become very impatient, he said. This creates an expensive and complex standard for companies to try to meet. Then again, if every company is everywhere all the time, it becomes “irritating and oppressive,” he assessed.
Some examples of companies extending their reach include Dominos, which allows consumers to order pizza over a variety of devices and formats, including texting a pizza emoji. Amazon has developed coffee machines that can detect beans are running low and order more. In Singapore, a Mini dealership detects when a car breaks down and offers stranded drivers a test drive while their auto is being towed. Virgin Hotels and Gap have apparel ready to order through the hotel concierge.
All of these examples are about “using context and new channels to reach people,” said Luthy.
Smartphones are changing human behavior. Luthy said studies have found people spend four times the amount of time on their phone in 2016 compared to 2011. The most popular apps are messaging apps. The language of mobile is fast, informal and effective. Aloft Manhattan Downtown allows ordering room service by texting an emoji. Western Union, a 150-year-old company, partnered with a tech company to allow transfers by texting.
“Artificial intelligence with natural language processing is a hot trend at many tech companies,” he said. “One study found 67% of consumers are willing to share data in exchange for benefits. Airbnb has service that helps hosts set the ideal price for their property. The key for credit unions is to find a way to help members make intelligent decisions, or perhaps break bad financial habits.”
Expectation 2: Self-improvement is easy. While 33% of people who buy a wearable fitness device lose interest in six months, consumers are embracing tech that connects them to mentors. Examples include ING bank in the Netherlands, which offers entrepreneurs support and encouragement, and KLM airlines, which offers a service for those with layovers of 6 hours or more to connect them with a local for a tour of Amsterdam.
“How can credit unions connect members with mentors?” Luthy asked members of the audience to contemplate.
Expectation 3: Brands share consumers’ values. Credit union marketers need to communicate the values of the institution, Luthy asserted. He pointed to a taxi company in El Salvador that offers sympathetic pricing – discounts when heavy rain makes public transport unusable. Delta Airlines created an employee-exclusive airport spa – with the idea employees will emerge refreshed and then give better service. Netflix offers unlimited parental leave for employees. Indian taxi company, OLA, provides drivers with free family medical insurance.
“How can credit unions turn pricing from a pain point into a point of compassion? Make meaningful positive change inside the organization and then share that with the world,” he said. “Which aspects of credit union culture can be shared with potential members?”
To fully tap important consumer trends, Luthy said CUs need to find basic human needs to serve and beat expectations.
“Have someone in the credit union keep track of trends that impact financial services,” he advised. “If it is a small credit union, rotate the responsibility every few months.”