How to Attract & Grow Relationships with Members

Transcription

1 How to Attract & Grow Relationships with Members NACUSO Annual Conference May 9, 2011 Jack M Antonini President & CEO NACUSO Former CEO USAA FSB Keith L Myers SVP Payment Alliance Intl. Former SVP USAA FSB

2 Overview Primary Focus on the USAA Model Brief Overview Historical Perspective Developing a Member Focused Company Empowering Employees Key Elements of Attracting & Retaining Members 2

3 Overview Importance of Life Event Marketing Innovative Collaboration to Deliver Product Components Improving Member Trust and Overall Relations Why the Model Works for USAA Questions 3

4 USAA Overview Incredible Record of Achievement 94% of USAA Members plan to be Lifelong Members Only P&C Insurer to have highest ratings from all three rating agencies 24% operating expense ratio vs. industry avg. of 40% Unparalleled Service & Value Ranked # Customer Service Hall of Fame Highest scores from JD Power Best Bank in America Money Magazine 4

5 USAA Historical Perspective What McD built $200 million P&C Ins. Co. with small new Life Ins. Co. Most successful integrated financial services co in US $30 billion in assets Highest Ratings (from Moodys, S&P and AM Best) Highest Customer Service Satisfaction Awards & Recognition Best Company to Work For in America Best Bank in America One of 20 Best of the Best in Customer Service 5

6 USAA Historical Perspective Significant Insights under McD Life Events Golden Rule Service Strategic Preparation Vision 2000 in 1985 Technology ATG, Image, Customer Convenient and Operator Efficient Think about everything from a member s perspective Processes don t pave the cow path Contracts/Forms simplify, pre-fill info already known Ask your customers really listen to what they say 6

7 Developing A Member Focused Vision Key Considerations: Owned by members Provide products & services members want/need Only offer products & services that Add Value Establish Key Result Area priorities Leverage internal synergies Strengthen relationship with member Started by Asking Members Commitment to Outstanding Service Criteria applied to all strategic opportunities 7

8 Developing A Member Focused Vision Key Insights from USAA: Golden Rule Service is most important Listen to your members & employees Life Events drive member actions/decisions Look at everything from a member s perspective Focus on cross-selling to existing members Be your members Trusted Advisor Collaboratively work together to deliver best product value, through low cost shared infrastructure 8

9 Establish Key Result Areas 1. Service treat customers the way you d like to be treated and employees the way you want them to treat your customers/members 2. Financial Strength 3. Increasing Product Value 4. Infrastructure Improvements 5. Growth Acquiring New Members Retaining Existing Members Don t neglect to invest in building your future -- at USAA this was at the Military Academies young members must be found to replace those growing older 9

10 Empowering Employees Decide what is most important & communicate it Simple, consistent message Culture All Employees should be able to tell you what it is Key Result Areas simplify the message & empower staff Walk the Talk Golden Rule Service / Leadership Safety net for employees empowers Golden Rule Service Recognition makes a difference o Service Heroes o Perpetuate legendary service stories 10

11 Key Lessons on Member Retention & Building Trust Listen to your Members & Employees Letters/Calls/ s from Members Employee Recognition Opportunities Presidential Complaint Communications Every Leader listens to Member Calls Performance Evaluation Questionnaires Every transaction with Alliance Partners Statistically valid sample of all types of trans/accounts Annual Member Survey When Something Goes Wrong, Find Solutions, NOT Someone to Blame 11

12 Attracting & Retaining Members Leverage Information you already have Mortgage App tremendous snapshot of member s financial life Consumer Loan App additional information Insurance Info helpful data for refinancing, etc. Membership Info members will share more info with financial institution they can trust Survey Info annual survey can be rich source of data Financial Planning valued service, great source of leads for products & services 12

13 Attracting & Retaining Members Make it Easy to do Business With You Develop Trust and Integrity Use Checking or Share Account to Build Relationship ATM Access is key driver on where member banks Brand ATMs to enhance identity and provide surcharge free access Proactively promote free overdraft protection Direct deposit, bill payment, home banking decrease attrition Prompt Members by telling them they are preapproved when looking at loan rates Expanding Relationship builds loyalty & value 13

14 Methods of Successful Relationship Building New Accounts Welcome packet Phone call/ 90 days to follow up Existing Accounts Maintain timely & continuous communication Cross sell other products Phone call/ follow up Use honest, frequent, & timely communication Personalize if possible, birthdays, anniversaries, etc. Anticipate next product need and provide Become trusted advisor.. OD protection, POD, Live Event Marketing Builds Strong Relationships 14

15 Life Event Marketing What is a Life Event? An event that creates a financial need in the member s life Important to the customer Can be big or small Can be one-time, or recurring Includes preparing for, going through and often, recovery after the life event May have multiple audiences College Event (Student, Parents, Grandparents) 15

16 Life Event Marketing Life Event Strategy: Create innovative financial solutions to meet members life event needs Develop a robust suite of financial solutions by creating, bundling, acquiring or partnering Leverage the buying power of your members, negotiating value, discounts and a quality of service they could not get on their own Compete on product features, service, access and price to build and retain profitable member relationships Our members will prefer doing business with us because we know them better, offer unmatched value and meet their life event needs better than any other financial institution 16

17 Life Event Marketing Life Events drive customer actions/decisions Life Event examples: Home Purchase / Move Vehicle Acquisition Change in Career Birth/Adoption of a child or grandchild Be your member s Trusted Advisor Leverage member relationships to provide benefits they could not obtain on their own 17

18 Life Event Marketing Vehicle Acquisition Life Event Core Needs Vehicle Information Safety, reliability, cost to operate, etc Pricing Locating Negotiating Financing / Leasing Insuring Maintaining Vehicle Disposition Typically financial institution only touches financing 18

19 Life Event Marketing Home / Move Event Core Needs Locating Buying / renting Selling Financing Moving / Storage Saving for Insuring Realtor often directs where mortgage is obtained Traditional FI only offers mortgages and equity lines 19

20 Life Event Service USAA s preparation for Operation Desert Storm Death Event the ultimate life event One call to handle all products Compassionate, timely response Allowed members to increase Life Insurance while other life co s invoked war clause terminating coverage for national guard & reservists called to active duty Advised members and their families Member response / appreciation 20

21 Growing Profitable Member Relationships Current Members are most cost effective way to grow profitable relationships Focus on Cross-Selling Products to Members Increase Member Retention Profitability Satisfaction Decrease your Cost per new account Credit Losses Operating Expenses 21

22 Key Elements in Building Relationships Utilize Member/Customer Information Share Common Data Elements Simple, efficient address change Knowledgeable employees = effective & efficient service Multiple Sources of Data Loan / Mortgage Applications Financial Planning Assistance Insurance Products Customer Propensities help predict Life Event Needs More cost effective marketing Offer right product or service at the right time 22

23 Key Elements in Building Relationships Trusted Advisor Unique Ability to Serve Your Members Information & Education Focus Examples/ideas: Credit Union Magazine o Online o Mail o Statement Insert Newsletters Credit Union Foundation unbiased source of info Great Source of Cross-Selling Opportunities 23

24 Innovative Collaboration Collaboratively Work Together the power of several credit unions working together for the benefit of their respective members is powerful and can generate a meaningful competitive advantage Members are your best asset Leverage Membership Work together to meet Life Event needs 24

25 Innovative Collaboration Members are your best asset Simply customers to banks source of profits Big bank Reputations have suffered Credit Unions are highest regarded! Banks are charging customers more than ever Bank customers are angry tremendous opportunity to win new members CU Members are more loyal trust their CU Will consider additional products & services from Trusted Advisor 25

26 Innovative Collaboration Leverage Membership Negotiate better service & rates Combined power of several credit unions can be substantial o o o You have what every business wants customers and they are willing to pay to access them Select the best service providers hold them to high standards for your members Ensure best value for members Provide complimentary Life Event services that members need 26

27 Innovative Collaboration Work together to meet Live Event needs Partner with insurance company o Insure collateral cars, homes, boats o Insurance Agency or Direct P&C underwriters Find best realtors o Referral Fee o Establish Service parameters Moving & Storage and Maintenance & Repair Negotiate Auto Pricing / Locating & Buying Service Saving for Retirement / College / new Home 27

28 Listen, Learn & Improve Ask your members and employees what you can do better Top Ten List Listen to your Members o o Complaint Calls & Letters Fix the problem so it isn t repeated Think about it from a Member s perspective Survey your Members Share what you learn with your team 28

29 Listen, Learn & Improve Think about it from your member s perspective What s the experience when a member o o o o Visits your office/branch Calls Goes online Accesses their accounts with their iphone or ipad How would you like to be treated? How can you make it o o o Faster Easier Lower cost Leverage Info you already have about your Member 29

30 Listen, Learn & Improve Survey your Members Product & Service specific questions o o o Structure questions so you learn actionable results Provide open-ended response space Amazing what your members will tell you if you ask! Consistent from year to year measure improvement Survey every member transaction with Life Event alliance partners Set Goal: 95% would recommend product or service to another member or member of their family 30

31 Summary & Why It Worked at USAA Unwavering Focus on Serving the Members Recognition of the Golden Rule how you treat your employees is how they will treat the customer Develop & Nurture a Culture that Empowers employees to delight the customer Rewards Innovation Promotes early recognition of & solutions to problems Encourages open & extensive communication Facilitates & Rewards Self-Improvement 31

32 Summary & Why It Worked at USAA Key Result Area focus in every decision 1. Service 2. Financial Strength & Profitability 3. Product Value 4. Infrastructure 5. Growth Measure & Report on KRAs to Board Financial Discipline 32

33 Summary & Why It Worked at USAA Focus on SERVICE and Continuous Improvement to include: Leverage Technology leverage technology CUSOs Simplify Processes think about it from member s perspective Competitive Advantage member owned, better rates Product Value collaborate to lower costs and deliver better product value Customer Ease of Access / Use Customer Convenient and Operator Efficient 33

34 Summary & Why It Worked at USAA Commitment to Strategic & Operational Planning o BHAGs o Formal, annual process Test & Learn o Validate Assumptions & Goal Attainability Implementation, within budget, on time Evaluate Results, apply what you learn to next project 34

35 How to Attract & Grow Relationships with Members NACUSO Annual Conference May 9, 2011 QUESTIONS Jack M Antonini President & CEO NACUSO Former President & CEO USAA FSB Keith L Myers SVP Payment Alliance Intl. Former SVP USAA FSB 35