Data that you can use at your fingertips. It should tell you about members, products, services, and the effects of the pandemic on performance.
WE HELP DEFINE DATA MEANING
What defines a profitable or unprofitable member? The criteria is critical to understanding member behavior and improving credit union performance.
INSIGHTS TO DRIVE BETTER LONG-TERM DECISIONS
Data insights uncover what people want and how they interact with your credit union. What's the best source of profitable members? Should we offer certain products?
MEMBER PROFITABILITY SCORE
"The simple truth is if you fail to focus on profitable members you'll fail in the ability to serve all members.”
299 South Main Street
Salt Lake City, UT 84111
WHY MEMBER PROFIT SCORE?
Guidance for better decisions
Determining the most important and profitable products/services to offer your members
To understand which members will yield the highest return
Figure out how to acquire new profitable members at the lowest cost
Upsell- converting non profitable members into profitable members
Refining relationship pricing and rewards programs
Reduce member abandonment
Compare member score attributes of one member to another (example- indirect loan member to SEG member
WE KNOW CREDIT UNIONS
When we started working with credit unions…
“Home Banking” was done with a credit union issued 3 1/2 inch hard floppy drive containing the program to install on your Windows PC.
“Connection” to the credit union was done via a telephone line and modem.
Mobile phones were just, well, phones. Smartphones and mobile apps were years away
"Green-screen terminals" running UNIX or COBOL drove branch operations.
We’ve seen lots of technology change and expanded credit union services
Our team has over 40 years The COVID-19 chaos has upended the predictive value of your systems data. You must determine who are your profitable members, what’s their buying journey and how to keep them.
We’ve worked on core systems, mobile and online delivery, marketing & relationship pricing applications, mortgage/direct/indirect lending and imaging. All of your systems store valuable member data but without converting it to business intelligence it’s value is limited.
How do we calculate Member Profit Score?
Lifetime Member Value unveils the profit value of each member as well as the Member Persona and Member’s Journey.
These derive from three sources:
Monetary Values (transaction history)
Non-monetary value (net promoter score from surveys and interviews and overall member satisfaction)
Future Value (data modeling from monetary and non-monetary data)
You will know:
The exact dollar value of each member now and in the future
Profitable Member Persona (20% of members)
Low revenue positive and revenue negative personas (80% of members)
Member Journey - From awareness to consideration to joining the credit union, to retention and to growth
Understanding member acquisition costs and their impact on ROA
Insights to move members from low revenue positive and revenue negative into the
revenue positive group
Perception of member service
Perception of the member experience
Which members recommend your credit union to friends and family
Failing to understand Lifetime member Value leaves you guessing at member service, marketing, operational initiatives, and product design. You set goals without understanding if you can profitably achieve them. Your reports and data are subject to gut-feeling interpretation and give you no predictive value.