Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Filene Paper Links Member Satisfaction, Share of Deposits
MADISON (6/17/13)--A new paper from the Filene Research Institute addresses how credit unions can translate high member satisfaction scores into improved share of deposits.

Credit unions spend a great deal of time and money trying to improve member loyalty by measuring and managing metrics like satisfaction and Net Promoter Scores (NPSs), according to the paper, "Linking Member Satisfaction to Share of Deposits: Applying the Wallet Allocation Rule in CUs." As a result, credit unions have far higher satisfaction and Net Promoter levels than their retail banking competitors.

However, despite having consistently higher satisfaction and Net Promoter levels, credit unions hold a small percentage of total deposits relative to their retail banking competitors. Part of the reason for this is that metrics like satisfaction and Net Promoter correlate poorly with the share of deposits that members allocate among the financial institutions they use. This fact runs counter to what most credit union managers believe.

The paper introduces the Wallet Allocation Rule, which takes into account the credit union's rank among all the financial institutions the member uses. For example, if a credit union is one of only two financial institutions a member uses for a given purpose, the rule shows that the difference between being the first choice and being the second can have a major financial impact. In such a situation, even being tied has grave consequences: Half of each dollar the credit unions could be collecting from the member is going to a competitor.

To read the paper, use the link.
RSS





print
News Now LiveWire
#creditunions celebrate #EarthDay2015 by being green aware with e-statements, hosting shred events, planting trees
14 hours ago
From @WSJ: 33% of companies say it took them more than 1 yr to discover a data breach. http://t.co/a0MxV68X6t http://t.co/lkglx6WvKs
18 hours ago
.@CAMCouncil taps into @MICreditUnions' career, tech training resources http://t.co/sotnfCUgIo
19 hours ago
#Inflation ticks up in March, still relatively flat #NewsNow #Market http://t.co/PyAvwdkJ4M
19 hours ago
#NewsNow Ill. league groups elect board, exec officers http://t.co/KAG8MtbGsv
20 hours ago