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White paper CUs must replace aging memberships
EMERYVILLE, Calif. (7/21/11)--A nationwide survey of credit union members indicates that credit unions must replace their aging members and increase loyalty among younger members. The survey results are summarized in a white paper released by myCUsurvey, which conducted the study. The white paper highlights three key areas where credit unions are at risk, and reveals where credit unions offer a unique advantage in the financial services industry. Among the key findings of the survey:
* Credit unions have to replace their aging membership. The white paper reveals that nearly 75% of all credit union members are age 50 or older. It also shows that younger members under age 35 are the least satisfied membership segment. “Clearly the growth opportunity for credit unions lies in their ability to increase satisfaction among younger members to increase membership and promote loyalty,” said myCUsurvey. * The size and location of the credit union is irrelevant. Unlike banks, where customers are concerned with convenience and service as measured by the size of the institution, credit unions have a level playing field. The survey indicates that the size of the credit union as measured by assets or number of branches had no effect on member satisfaction. “The inference is that credit union members are seeking something different from their financial experience, and are looking for a relationship with their institution, not just relationship banking,” said the company. * The in-branch experience is the key to improving member loyalty. Nearly three quarters of all respondents indicated that their last in-branch experience was “excellent,” which indicates that credit union executives have an opportunity to increase member satisfaction and recruit younger members through their branches, said the firm.
“Clearly, this member satisfaction survey reveals that credit union members are seeking something different from their credit union relationship,” said Dr. Jack Bieda, founder of myCUsurvey. “Any organization strives for 100% customer satisfaction, and for credit unions to improve their members’ satisfaction, they have to ask themselves how to engage more effectively with members, especially younger members, to give them the experience they want and keep them coming back.” While tracking demographics and measuring the experience with service and employees are indicators, other factors also drive member satisfaction, according to Bieda. He advised credit unions to assess additional performance factors such as employee knowledge and performance, loan rates, and availability of products and services. Establishing a baseline for satisfaction performance is the first step, which is the purpose of the most recent member satisfaction survey, Bieda said. The myCUsurvey Credit Union Member Satisfaction Survey polled more than 5,000 credit union members nationwide, and is designed to provide a benchmark for myCUsurvey customers to compare their own member satisfaction results. The survey was conducted using myCUsurvey’s integrated Web/interactive voice response system. The survey measured six key areas, including likelihood to recommend, branch satisfaction, service satisfaction, and employee satisfaction. Regional scores are broken into the five National Credit Union Administration geographic zones to make it easier to assess results on a regional basis.


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