Many credit union member retention strategies think they have a front door problem: member growth. For credit unions, the member growth rate slowed to 1.88% last year (the lowest number in close to 15 years). However, the real problem – net growth – could in fact be a back door problem. For every new person that comes in the front door, you might lose an existing member out the back door.
If you want to grow your organization, then close the back door. But how?
Focus on the top 10% of your base as part of your credit union member retention strategies. As Mark Hunter says in Follow-Up Like a Pro, “the best salespeople don’t track 200 lukewarm leads. They focus on 10 to 25 high-potential, highly qualified opportunities—and then follow-up relentlessly.”
Here are the steps to a Top 10% Strategy:
- Define your top 10%: Every organization’s top 10% is going to look different. You need to define what a participating member is. Maybe it’s based on type of loan, total balances, direct deposit, etc. You must know your most profitable members (the top 10%).
- Identify your top 10%: Now that you have a definition, run the numbers in your database and find out who they are. Make that list. Scrub it for accuracy. Make sure it passes the “smell test.”
- Look for key similarities: See if you can spot trends in what makes someone a top 10% member. As Simon Sinek famously says, always start with the why. If you know what makes a top 10% member, then you can start moving non-top 10% folks into the top 10%.
- Proactively communicate and market to the top 10%: Data without action is useless. Take practical steps to retain these folks: write them notes by hand, give them special deals, ask them for a testimonial, market to their family members and most of all thank them for their support.
Under Armour famously launched an iconic marketing campaign in 2003 called “Protect This House.” It symbolized defending one’s home court or field. Many sports teams still use that phrase today.
Credit unions need to adopt a similar mindset with their own top 10% of members. Think of it this way: what would happen if you lost the top 10% of your members? Or even if you lost just 2% of your top 10%?
Do not assume you will retain their business. The reality is that the current market landscape is incredibly competitive. Every one of your competitors is vying for your consumers. If you don’t take use proactive credit union member retention strategies to start retaining those most valuable folks, then they will walk.
Focus on your top 10%. Protect your house.
Of course, a well-protected home needs a security system. A way to identify what spots are weak and need attention. A marketing assessment helps you do that, letting you see the good, bad and ugly about your marketing and recommending immediate improvements.
