Whose needs are we really meeting?
Ever notice that when you shop on Amazon or search on Yahoo, that the ads, sidebars, and messages reflect pages you looked at not only a few minutes ago, but even months ago? The success of these leading e-commerce sites demonstrates to us the effectiveness of targeted website communications to boost sales and increase vital advertising click-through rates. The concept is simple-- the more we understand the individual website user, the more effective we can be in anticipating and serving their particular interest needs. Why aren't credit union's using this knowledge and technology more effectively?
When it comes to our members in the "e" channel, most of us still employ the mass audience, or one-to-many, approach to communication. Banner ad messages and text hyperlink promotions, for example, are often deployed to convey the general promotions of the period to all members regardless of specific relevance to the individual member.
While this serves to convey the credit union’s marketing needs in a “one-to-many” (or ‘shotgun’) practice, I believe we’re still missing a vital opportunity to more effectively serve our individual members’ needs. This is especially true given the limited time we typically have to communicate with members in the online channel and our general desire to fulfill a trusted financial advisor role.
Given the importance of the e-channel it should go without saying that promotions for eStatement enrollment and credit card products are wasted opportunities when delivered to members who have already adopted. Similarly, a member who has significant recurring credit card balance debt is likely to benefit considerably more by learning about lower-rate debt consolidation options as opposed to the latest CD rate special.
The irony is that for years many credit unions have operated sophisticated MCIF systems to segment and deliver highly targeted messages to members. Ask a person in your credit union’s marketing department today and they are likely to say that the MCIF capability is viewed as an essential resource in the toolbox. We know how these techniques are widely used to segment groups for product specific outbound campaigns (letter & e-mail). In addition, member data is now commonly used within branch or call center core systems to empower front-line staff to convey targeted advice and education while they are interacting with members. Why aren't we using this to help our online members?
I applaud the lead taken by a few credit unions including Fort Belvoir FCU and New England FCU. These credit unions have deployed systems capable of delivering targeted messages to members in all areas of the Internet channel. Methods include displaying pre-selected ‘stacks’ of graphical or text messages in a ranked order based on the individual member’s unique characteristics and anticipated interest needs. This is accomplished by authenticating the individual member (eg. via home banking) while referencing core system and MCIF data to determine the relevant message delivery ‘stack’. It can also happen outside of authenticated channels, without knowing who the visitor is, by analyzing a specific site visitor’s behavioral patterns and history to hone-in on a visitor’s needs and deliver more relevant message content.
While these initiatives are fairly new they are a huge step in the right direction for credit unions. Bravo!
Comments
You asked a good question: ... member data is now commonly used within branch or call center core systems to empower front-line staff to convey targeted advice and education while they are interacting with members. Why aren't we using this to help our online members?
From my own perspective, I believe there are a few things that impede online interaction. One is being able to truly identify member preferences based on their online activity. First - we have to guard against the impression of 'big brother'. Shared computers mean multiple interests from diverse users. What do you 'present' when you aren't sure of who is using the PC right then. It's not like you are seeing or hearing the person. Software capability is gaining in the area of member connections though. Secure mailboxes within home banking is one way to send messages to members - and be assured that the receiver is as intended. It's important to be judicious in the use of online interactions. Too much, is even more easily ignored and sent to the 'trash' than printed marketing pieces that eventually end up in the trash. Know Your Member should be the mantra. Look before you leap; but then when you leap make it sincere and meaningful. So your members will have confidence and your credit union will build solid trust.
Posted by: Jane Anderson (CU*Answers) | December 4, 2006 05:15 PM