WINSTON SALEM, N.C. — Instead of assuming how the economy is impacting consumers, Truliant FCU asked its membership.
The results have led the $1.2-billion credit union to take a closer look at its auto lending solutions to help those who are struggling with costs associated with day-to-day transportation.
"We are a collaborative organization and we work very closely with product services and the front line to address the needs of members," explained Ginger Salt, SVP-markets. "We use the survey to understand our members' pain points and see if we can proactively reach out to them with services and programs."
Truliant e-mailed a link to an online survey to 50,000 if its 180,000 members, receiving a 16.5% response rate. It asked: "Has the current economy affected your spending habits?" And, "If you have cut back on spending, what are the areas most affected?"
"The large majority (48%) had only cut back on a few non-essential items," Salt shared. "But 28% of those responding said they cut back on everything and only buy necessities. While the majority had not been critically impacted, close to one-third had cut back pretty much on everything."
That told Truliant that it needed to step up its financial literacy programs on budgeting and debt consolidation, which was not a surprise. However, what the credit union did not readily anticipate, is the degree to which members had been cutting back on auto expenses.
"Of those who have cut back, 45% said that auto-whether to buy or lease a new vehicle or make repairs-is the area where they have tightened their belts the most," Salt said. "This really helps our lending area understand members' pain points and provide them with better options."
TFCU surveys its membership once a quarter, or whenever issues arise, like when gas prices spiked to $4 a gallon. "We learned that members were moving toward hybrid car purchases," Salt said. "So we developed our fuel- efficient auto loan for cars that get higher gas mileage."
The surveys also helps Truliant's marketing make a stronger impact with members and non-members, Salt contended. "It allows us to hit the hot buttons, both with our formal marketing and what people say about us. When members know their credit union understands their needs, they tell other people."
Salt acknowledged that the surveys would not be as effective if the credit union did not have excellent "face-to-face" interaction with customers. Through those conversations, the credit union becomes aware of issues facing members and then the surveys pull out the details. Due to the surveys' success, Salt said TFCU is considering stepping up their frequency.
