BOSTON -
Mark Riddle, senior research analyst for Raddon Financial Group, squeezed some meaning from the numbers from a research study for attendees of the Credit Union Journal's Business Development Conference here. Two separate sources of data, the CEO Member Survey, which assesses member behavior, and the CEO Strategies Group, a database analysis of CU performance provided the raw material, and Riddle explained it.
Loyalty does matter, because it means that members are happy, and that means they are likely to recommend the CU to others. That organic growth is the best source of deposits and loans, he said. "You need to look at the people who will promote you," he told the meeting. "And for credit unions, this is encouraging: 40% of CU members are more likely to recommend their CU to family and friends than consumers in general are to recommend their financial institution."
This loyalty index is fed by a measure that has grown rapidly in popularity, the "net promoter score," and it's a key measure for a CU's share of wallet. In short, it measures likelihood to recommend the credit union to others. Those two out of five members who will recommend a CU will do so on the strength of the service they receive.
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Reporting By Carol Anne Burger
