NEW YORK-There are seven steps credit unions can take to become more consumer centric by better using member data already available to them, according to one analyst.
John Lass, SVP-strategy and business development with CUNA Mutual, told America's CU Conference those seven steps include:
1. Implement a data strategy. Credit unions may not realize it but they have a lot of information on their members, and now is the time to use it in a member-friendly way that keeps their best interests in mind.
2. Segment the member population. Determine which segments resonate with your value proposition and segment your members on needs, attitudes and behaviors.
3. Predict member needs. Once you have the data, use it intelligently. For instance, a new homeowner needs a lawn mower; a new parent needs life insurance.
4. Adhere to a sustainable financial model. Understand the lifetime value of a member. They are not only profitable, they will deliver value to you.
5. Deliver service excellence. Credit unions' staple differentiator is great service. Stay the course on that, but be ready to adapt to changing needs.
6. Enliven member democratic control. Credit unions need to shine a brighter light on their cooperative structural difference. Members should be reminded they are the owners and as such their credit union doesn't have shareholder issues like most competitors.
7. Don't forget about product and price. Make sure you offer relevant products that are comparatively affordable. Most credit unions don't have scale to be a product leader but through their cooperative structure, they should work together to be competitive on products and pricing.
