Ten Ways to Connect With Online Members

Beth Stetenfeld, Credit Union Magazine
March 11, 2008 | COMMENTS

Members who use online services are more profitable and retainable than those who don't, according to Keith Troup, vice president of operations for $801-million-asset Stanford Federal Credit Union in Palo Alto, California.

"It's all about people, time, and convenience," says Troup. The online channel has the advantage because "it's fast, affordable, and customizable," he adds.

An Internet-based transaction now costs Stanford Federal less than one cent—vs. $7.30 for a branch transaction, says Troup. Online users also are 84% more profitable, he adds. They have an average of three products at Stanford Federal, compared with 1.8 products for members who don't use online channels.

Retention of these members is higher, too—81% of members who used the credit union's online services during first-quarter 2003 are still active members, compared with just 73% of those who didn't use online services during that period.

Those are a few reasons "why" credit unions should attract and retain e-members, says Troup.

Here are his suggestions for "how" to do it:

1. Be present.

Make sure the credit union's web and online banking addresses are easy for current and potential members to find. Publish them in newsletters, brochures, advertisements, and e-mails.

2. Be reliable.

Keep downtime to a minimum—24/7 means 24/7, not 23.6/6.5.

3. Be clean and clear.

Make sure website and online banking presentations are crisp, and easy to read, and navigate.

4. Be interesting.

Don't worry about winning awards for design. Present information your members want.

5. Customize.

Personalize online messages for each member. Create a unique splash page the member sees after logging on.

6. Allow members to customize their web pages.

Most members have multiple financial institutions. Allow them to aggregate accounts at your credit union to save them time and keep them on your site.

7. E-mail members.

Allow members to choose which e-mail notifications they want to receive, such as online statements and low-balance alerts.

8. Sell.

Sales is a service. Provide a call to action on every product page. Link to secure online applications or order forms.

9. Develop services members will use.

An example is a link on the credit union's auto loan page that takes members to a car-shopping service.

10. Measure and manage.

Review member use reports to track visits, originations, and retention data. Perform satisfaction surveys. Measure online users as a distinct group, similar to how you measure a select employee group or demographic group.

Troup says any effort to attract and retain e-members provides superior member service, lowers credit union operating expenses, and increases member retention.

This story first appeared at www.creditunionmagazine.com and is reprinted with permission.