LIBERTY LAKE, Wash.-An emphasis on growth, increasing wallet share and service that lets employees and members have fun has helped Spokane Teachers CU here earn recognition as one of the highest performing CUs in the country.
CEO Steve Dahlstrom explained that, over the last decade or so, STCU has borrowed the "FISH! philosophy" from the Pike Place Market in Seattle, which emphasizes a playful atmosphere geared toward engaging consumers in the fun and the selling of products with a smile on your face.
"Some places won't allow you to have fun like that. We make it part of the culture," Dahlstrom said. "As a frontline employee you may see 25 members a day, but they only see you once. So you have to make that special and you look for opportunities to do that."
With household profit, new member growth, cross-selling and overall performance all in the highest percentiles of Raddon's Performance Index, the credit union earned a Crystal Performance Award from the consulting firm. The only area that seems lacking in Raddon's ratings is operational efficiency. But Dahlstrom chalked that up to frequent member turnover as the credit union is "fairly aggressive" when it comes to purging members and does not require share accounts to join.
'Higher Service Levels'
"We know that we have higher service levels, which translates to more people in our branches and phone centers, because we have been a service-oriented credit union," he explained. "The only way you can do that is have a little bit of excess capacity. It means our expense ratios are fairly high but our balances and services per member are near the 99th percentile."
"The thing that impresses me most about STCU is their willingness to innovate," said Fabio Biasella, VP and managing director of Raddon. "That and strong relationship development."
As the third-largest financial institution in Spokane, STCU boasts 8.5% of total deposits in the market and high name-recognition. Having a board filled with school principals also helps the $1.27-billion CU cultivate relationships with the local educational system, while the board keeps the pressure on STCU's management to continually give back to the community.
'A Tall Tree In Our Market'
"We're a tall tree in our market as the largest credit union. We don't have to spend a lot of money on marketing and those sorts of things," Dahlstrom explained. "[But] everything we do has to do with the member."
The credit union even has an alabaster heart at the focal point of the table at every meeting that "reminds us that we are here for the member, and not us. It purposely focused every meeting on how we can improve the relations of the member with the credit union. Some places talk about it, but you have to walk that talk."
Top performers must always have an eye on growth, because expenses will always increase, said Dahlstrom, noting that STCU has seen a 10% bump in membership this year. But equally important as adding new members to the rolls is constantly working to get existing members to bring more and more of their business to the credit union. Cross-selling is absolutely necessary, but so is a philosophy that makes members feel special. Something simple as a front line staffer coming out to the parking lot to see the new car a member purchased using CU financing can win great loyalty.
"You have to share the moment with the member," said Dahlstrom.
Raddon's Biasella has seen the FISH! philosophy in action at STCU, including the handing out of little plush fish toys to members during the day. He greets that the environment the credit union created has done wonders for the institution's performance.
"They've created a very good atmosphere for the member and the employee, and it's all mission focused," he said.
