LEAGUE CITY, Tex.-Member service reps trained to ask members who are closing out their account "Do you want cash or a check" should be asking other questions first, according to one person.
"A lot of the reason a credit union loses members is because of the way they think of credit unions vs. banks," said Jay Coppock chief operations officer of Associated Credit Union of Texas (ACUTX). "We're very proactive when somebody comes in. We ask about the products and services they are looking for."
Coppock said ACUTX employees are trained to make sure new members who walk in are reminded the CU "does everything a bank does."
When employees found themselves talking to a member who came in to close an account, however, too often the response was different, as employees concentrated on completing the account closure process as quickly and efficiently as possible.
"We felt we were missing an opportunity to ask, 'Why are you leaving? Tell me what we could do better,'" said Coppock.
To support its effort, ACUTX went looking for an account closure system to integrate with its Symitar core processing system that would enable MSRs to activate the close-out process and conduct it in real time-starting with an initial screen designed to help save the account from closure. After shopping around, Associated Credit Union of Texas settled on the customizable account closure interface offered by CUTEK.
While the system can process an account closure efficiently in real time-paying required dividends, transferring funds out, capturing outstanding credit card transactions and collecting a closure signature-employees are now trained to start by trying to save the member relationship.
To that end, the ACUTX marketing department created a script with a series of what to ask the member. CUTEK then coded the program to follow their script, highlighting the questions the CU wanted employees to ask verbatim.
When the reason for closure is the death of a member, the account can be closed immediately, with all proper steps taken. If the member is moving, however, the MSR can describe electronic services the CU can offer.
"I wanted to keep my staff from being afraid to ask 'Why?' when members say they are closing an account," said Coppock. "The lessons are simple. This is one more tool. It works when you do it every single time. Your job as an employee is to educate the member. Frontline employees everywhere are expected to be doctors, therapists, lawyers, all in one. This tool is a great way to remind them that when someone trying to close an account you put the breaks on and ask them 'The Questions'."
872 Members Spoken To
Over the past nine months, ACUTX reported that it has used the process roughly 1,400 times involving 872 memberships, some with multiple accounts.
While ACUTX will sometimes reverse fees to mollify an unhappy member, Coppock said the CU doesn't use the system to identify members it particularly wants to save. Instead, he wants employees to focus on the member in front of them. "But we don't have giveaways," said Coppock. "More often they just want to be heard."
Coppock said the CU "is happy with the results as a piece in an entire process. We're not focused on building a big number of saves. We built it to improve the overall service."
