Proving The Value Proposition
Credit unions talk a great deal about the advantages of CU membership; soon they will be able to show members, on paper, what that value is.
Filene's Chief Innovation Officer Denise Gabel said that Member Volume Promise, or MVP, is a benefit statement about the credit union that is sent to members. "Just like you get from work sometimes, they send you a communication that tells you how much you get from the employer in total-your paycheck, vacation, medical and dental, employee assistance programs, etc. They put a number to it."
Gabel said MVP calculates this total benefit for each member through a software program that asks the credit union to input member data and then spits out the MVP document, which most likely will be a mailer sent to the member's home.
MVP has been tested by the $6.9-billion Alliant CU in Chicago and was effective at building loyalty and adding new business, according to Gabel. Alliant used MVP to construct a four-page personalized report that first talked about the value of a credit union, such as member ownership and better rates on loans and deposits. The mailer followed with a listing of each member's accounts, compared them against bank averages, and then listed how much is saved or gained from each over the competition. A total figure, called the "Credit Union Advantage," is at the bottom of the report.
Gabel said Filene is also investigating ways to add in the value of service.
Alliant's report included customized special offers tailored to the needs of each member, with coupons. MVP is being piloted. Gabel said seven credit unions are currently participating, and that Filene is accepting more CUs for the pilot.