NEW YORK (6/20/14)--Consumers have endless, around-the-clock online and off-line options for researching and buying new products and services. Financial institutions, including credit unions, must understand that digital channels no longer simply represent "a cheaper way" to interact with members and customers. Rather, they are critical for promoting, stimulating sales, and increasing market share, according to McKinsey and Company.
McKinsey says that to keep up with rapid technology cycles and improve their multiplatform marketing efforts, financial institutions must take a different approach to managing the consumer decision journey--one that embraces the speed that digitization brings and focuses on capabilities in three areas:
Discover. Financial institutions must apply analytics to the data at their disposal to gain a 360-degree view of their members and customers, McKinsey said. Credit union member engagement strategies should be based on analysis of members' recent behaviors and past experiences with the credit union, as well as the signals embedded in members' mobile or social-media data.
Design. Consumers now have much more control over where they will focus their attention, so companies need to craft a compelling customer experience in which all interactions are tailored to a consumer's stage in the decision process.
Deliver. Employ "always-on" marketing programs, in which financial institutions engage with consumers in exactly the right way at any contact point along the decision process, and that require agile teams of experts in analytics and information technologies, marketing and experience design.
To get the full member portrait rather than just a series of snapshots, credit unions need a central data mart that combines all the contacts a members has with the credit union brand: basic consumer data plus information about transactions, browsing history, and member-service interactions, according to McKinsey.
"This collection effort requires input from people across multiple functions--a complex undertaking, to be sure, but the payoff can be big," the report said.