USAA: Lessons Learned & Innovative Collaboration Jack M Antonini
Overview Key Lessons Learned Decide what is most important & communicate it Key Result Areas Member Service Listen to your Members/Customers and Employees Leverage Information you already have Life Event Marketing Focus on Cross-Selling more products to existing members
Overview Innovative Collaboration Members are your best asset Simply customers to banks, from which they earn profits Bank reputations have suffered CUs are highest regarded! Leverage Membership Deliver added value through CU industry collaboration Negotiate better service & rates for entire group Work together to meet Life Event needs
Overview Listen, Learn & Improve Listen to your members Learn from mistakes / problems Conduct Member Forums or Focus Groups Invite feedback Think about it from your member s perspective What does your member experience when How would you like to be treated How can you make it: Faster, Easier, Lower Cost End Result & Why It Worked at USAA
USAA 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 #1 2009 Customer Service Hall of Fame Highest scores from JD Power Best Bank in America Money Magazine
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
USAA Historical Perspective Significant Insights under McD Life Events Golden Rule Service Strategic Preparation o Vision 2000 in 1985 o 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
USAA Developing A Vision for the Future Key Considerations: Owned by members Provide products & services members want/need Only offer products & services that Add Value Key Result Area priorities Synergies within USAA Strengthen relationship with member Started by Asking Members Commitment to Outstanding Service Criteria applied to all strategic opportunities
USAA Building A Customer Focused Co. Leadership Culture Training Test & Learn Listen to your customers/members Respond to problems quickly, with compassion Recognize Service Heroes
USAA 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
Key Lessons Learned 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 Service Heroes Perpetuate legendary service stories
Key Lessons Learned Listen to your Members/Customers & Employees Letters/Calls from Members Employee Recognition Opportunities Presidential Complaint Letters/Calls 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
Key Lessons Learned Leverage Information you already have Mortgage App tremendous snapshot of member s financial life 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
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
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)
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
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 Typical FI only offers mortgages and equity lines
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
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
Key Lessons Learned Focus on Cross-Selling Products to Members Increase Member Retention Profitability Satisfaction Decrease your Cost per new account Credit Losses Operating Expenses
Key Lessons Learned 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
Key Lessons Learned Trusted Advisor Unique Ability to Serve Your Members Information & Education Focus Examples/ideas: Credit Union Magazine Online Mail Statement Inserts Credit Union Foundation unbiased source of info Great Source of Cross-Selling Opportunities
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
Innovative Collaboration Members are your best asset Simply customers to banks source of profits Big bank Reputations have suffered Credit Union s 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
Innovative Collaboration Leverage Membership Negotiate better service & rates Combined power of several credit unions can be substantial 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 Live Event services that members need
Innovative Collaboration Work together to meet Live Event needs Partner with insurance company Insure collateral cars, homes, boats Direct P&C underwriters Find best realtors Referral Fee Establish Service parameters Moving & Storage and Maintenance & Repair Negotiate Auto Pricing / Locating & Buying Service Saving for Retirement / College / new Home
Innovative Collaboration Home Life Event Opportunities Home Event Needs Consumer Information Improving Buying/ Selling Maintaining Financing/ Refinancing Insuring Securing Moving/ Storing
Innovative Collaboration Vehicle Purchase Life Event Opportunities Auto Event Needs Consumer Information Vehicle Disposition Pricing Maintaining Locating Insuring Negotiating Financing/ Leasing
Innovative Collaboration Managing Money Live Event Opportunities Managing Money Needs Consumer Information Saving/ Investing Purchasing Planning $ Accessing Transferring Financing Bill Paying
Listen, Learn & Improve Ask your members and employees what you can do better Top Ten List Listen to your Members 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
Listen, Learn & Improve Think about it from your member s perspective What s the experience when a member Visits your office/branch Calls Goes online How would you like to be treated? How can you make it Faster Easier Lower cost Leverage Info you already have about Member
Listen, Learn & Improve Survey your Members Product & Service specific questions Structure questions so you learn actionable results Provide open-ended response space 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
End Result & 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 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
End Result & 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 Financial Discipline
End Result & Why It Worked at USAA Concentration on Continuous Improvement & Leading Change Technology Processes Competitive Advantage Product Value Customer Ease of Access / Use Customer Convenient and Operator Efficient
End Result & Why It Worked at USAA Commitment to Strategic & Operational Planning BHAGs Formal, annual process Test & Learn Validate Assumptions & Goals Implementation, within budget, on time Evaluate Results
For Questions or Help Contact Jack Antonini at: Phone: (713) 208-0989 Email: jantonini@aol.com