TAMPA, Fla.-For many credit unions, growing members, revenue and service levels can feel like a daily mountain climb. A company that specializes in gear for such climbs-along with camping, paddling and more-is offering advice on making that hike easier.
Recreational Equipment Inc., better known as REI, is known to many for a flagship store on Yale Avenue North in Seattle that's something of a tourist attraction. Behind its widely known brand are 135 stores, 11,000 employees and $2 billion in revenue.
But what many don't know about REI is that-like credit unions-it has "members" and is organized as a cooperative. Listening to one of its executives talk about what drives REI's success is much like listening to a credit union exec.
"It's about our members and our employees," explained Michelle Eten, divisional VP with the company. "We live our values: Authenticity, quality, service, respect, integrity and balance. The No. 1 response from new employees when asked what it is they notice about us is respect. It really does make a difference. I have been with REI 15 years and it's these core values that keep me there."
Eten's comments came during the CUNA Mutual-sponsored "Battle for the American Consumer: A Symposium on Member Centricity" last week. And Eten knows something about credit unions: she's a board member at Tukwila, Wash.-based BECU.
A consumer does not need to be a member of REI to make a purchase. But members, who pay a $20 annual fee to join, receive a 10% annual dividend on full-price items, are eligible for special member-only coupons and discounts, receive discounts on adventure travel trips and shop services and-of course-get a vote for the company's 12-member board.
Eten, whose responsibilities include optimizing the digital customer experience at REI.com, offered CUs insights into her company's approach to serving its members and consumers in general. "We spend a lot of time thinking about the customer service experience and how to make it as easy as possible."
DNA Of REI
Eten described customer centricity as the "DNA of REI," which she said focuses on three areas: compelling product, seamless service and inspirational experiences. The focus is aimed at winning the "battle of share" in which three forces are at work and which will sound familiar to CUs: technology, the connected consumer, and the competitive landscape. "We can't afford to fall behind."
In 2012, just 9% of REI's sales were generated through online channel. But 47% of its growth came from that channel as well. "That is where the customer is engaging with us and we have to invest in this space to be relevant to them."
Eten said a credit union would be mistaken to think of some members as "online" members and others as "retail" members. "They are the same person moving across channels. It's why retailers have moved to an omni-channel environment," she said.
It's the "omni" piece of that that's the real challenge when it comes to "seamless service," observed Eton, noting some consumers want to order online and pick up in store. Or talk to a representative on the 800-number then see that conversation reflected online. "It takes a lot of hard work and focus. How easy is it for your members to cross from mobile to a website to a branch, and where are those points of friction?"
REI calls that process the "customer journey" and its employees frequently take the journey themselves looking to see where the "pain points and opportunities for improvement" lie in the buying process.
Eten also recommended credit unions rethink their members' digital experiences and expectations, noting the trend online is clearly toward mobile. "Think about that for a moment. Where should you be focused?," asked Eten. "On your website or on your mobile experiences? It changes the skill set of the talent that you need. It changes what you design for first. Design for mobile, and then build up from there."
REI has increasingly focused on personalizing the digital experience. For instance, it tracks where consumers browse on REI.com. Someone with a history of looking at cycling, paddling or camping products, for example, gets a graphically customized site showing those products, respectively.
But where Eten sees a real opportunity for credit unions is in something REI shares in common: "inspiring experiences."
"To me this is a key differentiator for REI and I believe can be for you, too. We host training and social media projects. There are 1,440 minutes in a day, so our social media team developed project called '1,440' that allows members to go online and post outdoor experiences for every minute of the days. There's a huge conglomerate of photos there. They are photos from all around the world. Inspiring experience can be an opportunity to show what can be unique to you."
