Member Experience Improvements Can Increase ROI
Financial institutions (“FIs”) are focusing more and more on improving member experience to improve ROI. By improving members’ overall experience, FIs can increase satisfaction and loyalty, leading to additional revenue.
Let’s look at how organizations are having success by improving the member experience.
What is member experience, and how is it different from customer service?
“Member experience” is focused on creating a higher quality relationship between an FI and its user base, which goes beyond the service delivered by a financial institution. Member experience looks at how an FI can provide a consistent, user-friendly journey that caters to each member’s needs. The member experience is intentionally designed to remove friction and give people what they need: valuable products and services backed by an even more valuable customer experience.
How can a financial institution create a positive member experience?
Create a personalized member experience:
Personalization is critical in driving revenue, as it allows an understanding of member pain points and enables the seamless interaction necessary to keep members engaged.
Leverage data: Data-driven insights within the digital space allow FIs to respond quickly and effectively to member needs, providing unique experiences which build trust and brand loyalty. Personalizing member interactions, helping to solve pain points, and offering seamless digital experiences are some strategies FIs employ to increase ROI through improved member experiences.
Focus on Member Lifetime Value (MLV): Analyzing revenue over time and surveying members provides insight into how member experience efforts are working. It will also help deliver more relevant experiences and understand members’ needs at any given time, allowing financial institutions to respond in real-time with personalized solutions. With this approach, financial institutions increase revenue and forge long-term member relationships – an invaluable asset in today’s competitive landscape.
Harness the power of behavioral science: FIs can experience substantial impact by making small changes. Banks and credit unions that want to improve their members ’ experience must prioritize enterprise loyalty, education, and rewards. Financial institutions can build genuine interest by offering meaningful rewards programs. With systematic advancements toward enterprise loyalty, FIs can improve the member experience and keep members satisfied.
Does the investment pay off?
Research shows a positive correlation between financial metrics and customer experience metrics. Consider this:
Customer-centric companies are 60% more profitable than companies that don’t focus on customers.
Brands with superior customer experience bring in 5.7 times more revenue than competitors that lag in customer experience.
84% of companies that work to improve their member experience report an increase in revenue.
Member experience leaders achieved compound average revenue growth of 17% over five years; the laggards achieved just 3% growth during the same period.
But, remember patience pays off as efforts to improve member experience don’t always drive immediate positive returns; it’s about the long-term customer value.
The Bottom Line:
An excellent member experience leads to increased ROI because more satisfied members are more likely to stay with an FI longer. They’re also more likely to refer other potential members and generate new business. While most FIs focus on customer service, the goal of member experience is to build true loyalty and transform the way your members see you – from a transactional relationship to a valued partner invested in their financial future.