standing in your members’ shoes (credit union conference presentation)

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1 Standing in Your Customers’ Shoes Presented by: Martie Woods, Vice President and Chief Experience Officer June 30, 2011

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In order to deliver an exceptional member experience, one that truly drives loyalty, credit unions must understand the experiences they are delivering today. Experiences are made up of big and small moments. They happen before the member even walks into the branch and continue long after the member leaves. In this 2011 NAFCU Annual Conference session you will understand what member experience is and how it drives loyalty. Plus, learn ways to immediately improve the member experience at your credit union. Presented by Martie Woods, Chief Experience Officer, Deluxe Corporation More info at http://www.nafcu.org/deluxe

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Page 1: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

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Standing in Your Customers’ Shoes

Presented by: Martie Woods, Vice President and Chief Experience Officer June 30, 2011

Page 2: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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How the loyalty conversation has changed A case for change Why trust still matters Shifting to value

Page 3: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Loyalty: The progression of the birthday party

Experiences

Services

Goods

Transformations

Commodities

Joe Pine & James Gilmore Welcome to the Experience Economy

Page 4: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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The Case for Change…

Digitally-savvy kids are changing everything. Including, their boomer parents. Women are taking over. She-conomy. Nationally, minorities will comprise 40% of the population. In CA, they will be the majority.

1. Demographics

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©2011 Deluxe Enterprise Operations. All rights reserved.

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Stop thinking fast and convenient. Think time well spent. Consumers are increasingly picky, yet patient. Not because they think we deserve time to serve them. Because they have iPhones.

2. New Demands

The Case for Change…

Page 6: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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The Case for Change….

Consumers are increasing savings at a rate double what it was in the ‘80s. At the same time, they are spending and borrowing less. Our industry is no longer making its money on deposits and loans. Savings and investment products will prevail. Consumers still expect free.

3. Savings

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©2011 Deluxe Enterprise Operations. All rights reserved.

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The Case for Change….

Niche products and services will prevail. Health, wellness and local foods. Supports movement away from traditional employment. Mid-sized business will be acquired into large corporations, paving the way for more small businesses.

4. Small Business

Page 8: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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The Case for Change…

Consumers do not see a relationship between regulations and product. Nor do they necessarily know whether a constraint they are experiencing is due to a regulation or a bank policy.

5. Regulations

People don’t want to know how sausage is made.

Page 9: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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A New Look at Trust

Page 10: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Why trust still matters

State of trust Two kinds of trust Impact on your brand

Page 11: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Trust – 2 Kinds

Micro Trust

Macro Trust

Page 12: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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When the world is good, consumers trust further and further out from their ―inner circle‖.

When the world is bad, consumer‘s trust is held ―closer to home‖.

Trust MACRO

MICRO

Page 13: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Guiding Principles to Trust

Each consumer weighs decisions against their levels of Micro Trust and Macro Trust.

When distrust is high in either sphere, it compels them to action.

Consumers are looking for ―close to home.‖

Consumers want to trust people and organizations who are close to home.

Page 14: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Trust/Selling Paradox

Trust

Sell

Page 15: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Simplicity

Take time to explain policies and terms in clear, simple language, and it feels like added value.

Trust erodes when the deal is too complex, the language is too legal, or conditions change without straightforward explanations.

Page 16: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Transparency

Transparency is created when the sales conversation includes: - The up and down sides of choice - The benefits and sacrifices attached to their

choice - Information about the inner workings of the

credit union - Disclosure of potential penalties if the

member doesn‘t comply with the terms of their choice

Page 17: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Presenting Options

Members respond positively to sales situations where they feel they have options.

Options provide them with a sense of shared and feeling that the credit union is ―honoring my thought process.‖

Give the member a sense of control by providing clearly delineated options in sales situations.

Page 18: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Factual Credibility Feature-based statements are a better way to build trust than

benefits-based statements.

Benefits statements alone are even less effective for members because they‘ve learned that life isn‘t all ‗blue sky‘ and that the benefits statements are meant to persuade.

Page 19: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Authenticity Trust is built when the conversation feels

genuine and real.

Even scripted sales situations and typical sales language can shift from trust-killer to trust-builder with the addition of authenticity.

Statements peppered with a little bit of relevant fact feel genuine, real, and authentic – and build trust.

Page 20: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Back It Up Back up your offers with printed literature, comparison charts,

or (even better) hand-written offers.

Product A Product B

2% int. 3% int.

Term: 3mos Term: 6 mos

$500 min $900 min

Jennifer’s Car Loan –

$120/mo

24 mos.

Page 21: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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It‘s All About Trust Watch for the elements of your

conversations that erode trust. Incorporate language, techniques and

tools that build trust.

Page 22: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Branding – Make a Promise

Execution – Keep a Promise

Make a promise

The Brand Promise

Brand

Page 23: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Shifting to Value

Page 24: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Make Money in a New Way

See the opportunities. Stop charging for what costs you money. Start charging for what members value.

Page 25: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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The New Division

Transactional relationships

Deeper relationships focused on achieving

positive financial goals

Plus, an interest in smart

spending

Page 26: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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This is bigger than a product, a service, a program….. this requires a paradigm shift.

Page 27: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Think About It…

―When you change the way you look at things, the things you

look at change.” - Wayne Dyer

Page 28: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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Why are our members obsessed with FREE?

Because we trained them to be.

Page 29: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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This is what we have promised our customers and members:

―We‘ll hold your money for free.‖

These two words are undermining our ability to create value in the minds of consumers:

―We‘ll hold your money for free.‖

Page 30: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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hold free ―It‘s yours and we are borrowing it‖

―There‘s no charge‖

All of the industry efforts have been focused on eliminating free—not on changing the assumption that the credit union holds their money.

What consumers hear

Page 31: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

©2011 Deluxe Enterprise Operations. All rights reserved.

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To change consumer perceptions of credit unions, it will require more than an individual marketing campaign associated with a product change.

The industry will need to think bigger and join forces.

Page 32: Standing in Your Members’ Shoes (Credit Union Conference Presentation)

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Thank you.