E-Delivery Strategy for CUs

Bank of America has 6,000 branches. Wells Fargo has 3,000. And TD Bank has 1,300. How’s your credit union going to compete?

During a recent CUES Webinar, Ron Daly, president/CEO of Digital Mailer, Herndon, Va., a CUES Supplier member and CUES’ strategic provider for My Virtual Strongbox, suggested the answer lies in outstanding electronic delivery strategy and execution.

“You can’t out-branch them,” Daly said, “but the digital communication channel levels the playing field to compete with the largest banks. The trouble is, very few CUs use it to its full potential.”

Daly offered seven steps CUs can follow to make the most of e-delivery.

1. Determine your goal based on where you want to go.

Ask yourself what you want to achieve with your e-delivery. Some examples might be attracting new members or growing more profitable business from existing members.

2. Ready the tools needed to help you reach your goal.

Ask this key question: “What e-delivery tools are missing that would assist you in reaching your overall strategic goal?” Look for consistency across devices – can members do everything they want to do just as well on their tablets, phones and PCs? Consider security, too, Daly emphasized.

3. Create an “e” place within your organization.

Daly envisioned a C-level position with the authority to do what it takes to grow business while driving an e-strategy that aligns with corporate strategy. He suggested that having a top executive focused on e-services will help in solving key challenges, such as integrating various programs/technologies launched at different times in the past. An upper-level executive will also be well-positioned to update the CEO and the board on the CU’s e-strategy progress.

4. Set a corporate goal to collect customer contact points.

To work well, technology still needs email addresses and/or phone numbers that enable contacting members. “Collect and store this data in a central location that allows sharing, and make sure the database is easy to update from any source” at the CU, Daly advised.

5. Start to drive your messaging toward mobile devices and one-to-one communication.

CUs used to send the same message to everyone; now most can send the same message to a targeted few. However, people today expect targeted, one-to-one messaging from their CUs when they have logged in or otherwise identified themselves. For example, Daly suggested using the ATM to deliver personalized messages, such as reminding a member he has a CD maturing next week, or suggesting an additional financial product that might fit her current needs.

6. Open data for marketing and communications.

“You have tons of data in your core systems, tons of ways to cross-sell,” Daly said. “Use the data and the technology and the contact points you have to cross-sell current members better.” For example, an ad engine could cross-promote additional credit union products to members while they are logged into online or mobile banking.

7. Use your open data to get personal and local.

Use your technology and data to make individual connections with members. “What Bank of America and its 6,000 branches can’t do is get local,” said Daly. “They can’t get into markets easily and give that personal touch. But CUs can. Focus on your market and your strategy inside your market. Win so much ground there, that even when Bank of America comes in, they can’t take it away.”

Daly concluded by asking webinar participants to think about what the History Channel might say about CUs 10 years from now – about how CUs brought together all the “mish mash” that is current electronic delivery into one, incredible member experience. “Make it a good story to tell,” he said.

Lisa Hochgraf is a CUES senior editor.

Photocredit: dollarphotoclub.com/Petr Ciz