Why First Call Resolution is Key to Member Loyalty

Every credit union member wants their question or problem to be addressed quickly and easily—and on the initial phone call. First Call Resolution Rate (FCRR) is the percentage of calls resolved on the first call without being transferred to another agent. It’s a primary driver of member loyalty.

According to a 2009 report by The Ascent Group, “First Call Resolution is perhaps the most powerful call center metric. When you improve FCRR you’re improving quality, reducing costs, and improving customer satisfaction, all at the same time.”

The key to having a great FCRR is installing the proper tools to ensure the caller reaches an agent who can resolve their concern. This requires:
· A call routing system that sends questions about mortgages to the lending department or questions about password resets to the technical support department.
· Scripting to ensure that each call is handled both consistently and accurately.
· Specialized training to help Call Center representatives empathize with members and communicate concern.

Recorded calls should be used to evaluate representatives both to reward them for excellent service and to offer more training if needed.

Business continuity is also essential—not just for power outages or natural disasters but also for temporary situations like the recent San Francisco Bay Bridge closures, which affected the ability for credit union employees to get to work. What is your credit union’s business continuity plan for ensuring member support during an emergency or special event?

Many credit unions deliver great member service, but tracking and measurement tools are needed to validate the level of service provided. Successful Call Centers track wait times and abandonment rates, first call resolution and whether accurate and consistent information is being delivered to your members.

Bottom line: If you are able to resolve questions or concerns in the first call, your credit union is building a life-time relationship with its members.

Mobile Banking - it Is Not Home Banking!

Mobile banking will revolutionize retail delivery channels with a velocity similar to the sea change of ATMs in the 1980s. The simplicity of using a cell phone to conduct a wide variety of transactions – anywhere and anytime – will completely change the way consumers handle their finances.

The nation’s largest banks are already staking their claim to mobile banking adoption. According to interviews with Bank of America, the rapid adoption of mobile is a key factor in their ability and desire to shrink branches by 10 percent.

“2.8 million customers are now using the mobile channel which was introduced in mid-2007. That's an average of about 120,000 new customers per month. …. In early Feb, the bank said it had 2 million mobile banking customers; so in the past 5.5 month, growth has been just under 150,000 new users per month.”

TowerGroup and Online Financial Innovations predict that mobile banking will grow from 9-10 million users this year to 30-53 million users by 2013.

Unfortunately, many credit unions consider mobile and Internet banking to be the same. While there are some similarities, these are two very different channels. The advantage to mobile banking is convenience and simplicity. Just like the ATM opened up the ability to access cash, check balances and (now) make deposits away from the branch, mobile banking opens up the world of online finances to any location.

Mobile banking incorporates the best of online banking – checking transactions, transferring funds or setting up bill pay – and adds some key services, such as the ability to use the phone like a debit card to process payments or location-based fraud prevention.

Impact on Contact Centers

So why is a blog dedicated to credit union call centers talking about mobile banking? Simply put, if credit unions want to remain a viable option for new customers, they will have to offer their members convenient access. Credit unions need to offer mobile today!

Right now, anywhere from 20 to 40 percent of the calls to a credit union call center are for balance checks. These are calls from members who are out shopping or on the road without access to the Internet. Based on average call expenses, it costs a credit union as much as $4.50 to tell a member their balance by phone. If that member were to use that same phone to check their balance using a mobile application, it costs the credit union mere pennies. Call centers will then be able to focus on more complex service needs, including new account generation.

Credit union’s should drive down their costs, increase their member loyalty and improve their competitive positioning by deploying mobile technology.

How Does Your Call Center Measure Up?

How does your credit union handle member service at its largest branches? What about the call center? For most credit unions, the call center is easily one of the three largest “branches” in terms of members served.

Most credit unions are entering into their planning season. How does your call center measure up?

Take the following quiz and use your score to determine how effective your call center is – or where you need to make improvements. For any of the questions, if you do not measure that metric, use answer D.

Questions
1. What is your call center’s average speed of answer?
a. Less than 20 seconds = 15 pts
b. Less than 35 seconds = 12 pts
c. Less than 60 seconds = 8 pts
d. More than 60 seconds = 5 pts

2. What is your call center’s abandonment rate?
a. Less than three percent = 10 pts
b. Less than five percent = 8 pts
c. Less than eight percent = 5 pts
d. More than eight percent = 3 pts

3. What is your cost per contact?
a. Less than $4.15 = 15 pts
b. Less than $4.75 = 12 pts
c. Less than $5.20 = 10 pts
d. More than $5.20 = 8 pts

4. What is the average call handle time?
a. Less than 3.92 minutes = 10 pts
b. Less than 4.2 minutes = 8 pts
c. Less than 4.5 minutes = 5 pts
d. More than 4.5 minutes = 3 pts

5. What is the first call resolution rate?
a. More than 94.75 percent = 15 pts
b. More than 87 percent = 12 pts
c. More than 80 percent = 10 pts
d. Less than 80 percent = 8 pts

6. What is your call center agent attrition rate?
a. Less than 20 percent yearly = 10 pts
b. Less than 30 percent yearly = 8 pts
c. Less than 40 percent yearly = 5 pts
d. More than 40 percent yearly = 3 pts

7. What is your agent utilization rate?
a. More than 80 percent = 10 pts
b. More than 70 percent = 8 pts
c. More than 60 percent = 5 pts
d. Less than 60 percent = 3 pts

8. Do you have a business continuity plan?
a. Yes, and I can rely on the plan instantly = 5 pts
b. Yes, but it takes time to utilize the plan = 2 pts
c. No, I have no plan in place = 0 pts

9. What is your Net Promoter Score?
a. More than 50 percent = 10 pts
b. More than 45 percent = 5 pts
c. Less than 45 percent = 2 pts
d. I have not measured my Net Promoter Score = 0 pts

Results
Tier 1 – Gold: 100 Points
If your contact center falls into this tier, it is an effective, efficient machine. You’re answering calls in under 20 seconds while keeping costs per contact under $4.15. Agents are being utilized at a rate of more than 80 percent. Members are having their questions resolved during the first call 94.75 percent of the time, and the average call lasts less than 3.92 minutes.

Tier 2 – Silver: 75-99 Points
If your contact center falls into this tier, it falls just short of industry standards and needs a boost to help it succeed. Contact centers falling into this group are satisfying their members but may not be building member loyalty. You may be able to optimize your cost efficiency more by using an external call center to help better utilize your internal agents.

Tier 3 – Bronze: 50-74 Points
If your contact center falls into this tier it is not meeting standards and is costing you money, not making it. Contact centers falling into this category are considerably slower in the average speed of answer, and they are not always satisfying the member, let along building loyalty.

Tier 4 – Fired!: 49 Points or Less
If you contact center falls into this tier, it is failing and needs improvement in many ways. You are not able to provide your members with the service they need, and you could be spending too much in costs as well. It is highly advisable that you re-evaluate your call center or seek out an external one to help with the call volume.

Measuring the Intangibles – Improving Call Quality Increases Member Loyalty

In an earlier blog, we covered how to avoid being fired by your members – Build Member Loyalty with the FIRST Call. Tracking your credit union’s first call resolution rate is a necessary and objective way to measure member satisfaction.

When you are dealing with people, however, objective measures do not always tell the whole story. It’s also important to identify and measure a call center representative’s softer communication skills. Yes, you fixed a problem or completed a request, but was the member satisfied with the person-to-person interaction and overall experience?

How to Measure Softer Skills

Measuring the softer skills of communication can be subjective and, therefore, difficult to identify and track. My experience with credit unions and call centers has helped me to specifically identify and recommend ways for credit unions to score their agents in the following categories:

• General tone – Is the agent pleasant to speak with? Do they speak with the same rate of speed as the caller?
• Clarity – Is the agent speaking clearly?
• Listening skills – Has the agent shown they understand the member’s issue?
• Avoiding dead air – Does the agent avoid long, awkward silences during the call?
• Empathy – Does the agent relate to members? This is especially important for emotional issues such as stolen cards, late payments and other issues that could upset the member.
• Courtesy – Is the agent polite? Is the agent using the member’s name? Thanking the caller for being a member?
• Sticking to the correct script or process – Does the agent follow the procedures that will best resolve the member’s call?
• Timeliness – Does the agent avoid wasting time on the call?
• Additional help – Does the agent ask if the member needs help with anything else before ending the call?
• Survey – Is the member given the chance to share their opinion of how well the credit union met their service expectations?

Keep an Ear Out

The best way to measure call quality is to record and monitor calls. Agents can then be scored on a range of factors to arrive at a “quality score.” Monitoring call does not have to be time-intensive. Credit unions can add analytic software to their phone systems that identifies and flags calls with high emotional responses or long period of silence, helping identify agents or scripts that need to be improved.

It is important to set two levels of acceptable scores – a base score to establish minimum standards, and an incentive score to encourage agents to strive for high scores. Then, promote the rewards that come with those scores – loyal members and a job well done.

Credit unions with high call quality will better impress their members. This helps create memorable experiences and increase member loyalty, which drives both retention and new member referrals.

Related Articles
Building Member Loyalty with the FIRST Call
Is Your Call Center Solving Issues? Or Just Answering the Phones?
Don’t Think Basic, Think NECESSARY Call Center Metrics
Calls Cost, But How Much is Too Much?

Unhappy Customers Can Spread Their Gloom to Millions

We learn the lesson again and again…a negative experience can live for eternity in the hearts, minds and – now – YouTube accounts of those affected. Fail to serve a member’s needs, and you could end up seeing your credit union being ridiculed online by thousands – or even millions – of people. A couple of examples from this week have really brought this to light.

United Breaks Guitars

In 2008, musician Dave Carroll witnessed his band’s guitars being thrown around by United Airlines baggage handlers, which resulted in major damage to his custom-built guitar. In Dave’s own words, he tried to work with the airline’s call centers for nine months before giving up and making his video.





That video hit YouTube on July 6, and has been viewed nearly 3 million times in less then two weeks. In addition, the story has now generated more than 550 news stories across the country.

Bank of America – Making Customers Call Different Numbers

Think this couldn’t happen in financial services? Consumerist, a consumer focused blog from the publishers of Consumer Reports, shares three examples of customers getting nowhere with Bank of America’s call centers. Worse, even the bank’s own employees couldn’t work their way through the call center:

On May 14, 2009 I called the Risk Department around 1PM. … Immediately after this phone call, I walk into my local Bank of America branch. … I explain the situation. … She tells me there's no use in her calling the Risk Department as they will only tell her the same thing they told me. She gives me a card to Customer Solutions. She tells me to call the number, as it is my best bet at getting this issue resolved…I call Customer Solutions at 1-800-831-4419. I explain my story. They put me on hold as they contact the Risk Department. They come back on the line and give me the exact statement the Risk Department told me. … I ask her if I have ANY other options to get this issue resolved. She responds, "No."

That’s two different phone calls (to two different numbers) and a personal visit to the branch, still with no resolution.

The Consumerist story was read more than 12,000 times in its first week. Both of these stories have generated online comments and other blog postings, with most writers stating their intent to no longer use these companies. Maybe they can afford to lose the business, but could your credit union?

The best way to avoid having to deal with situations like this is to have a competent call center in place. Credit unions must evaluate their call centers, which often handle as much member business as a branch, and make the changes necessary to make them effective sources of true member service.

Building Member Loyalty with the FIRST Call

Your members are firing you every day, and you don’t know it. Credit unions claim that their pillar of success is great member service, but is it? How are you measuring your contact center’s member service?

Maybe you’ve been tracking the metrics discussed so far in our series, and you think your service levels are superior:

• You’re answering your calls on the second ring.
• Your abandonment rates are under 5 percent.
• You’re listening to the recorded calls and scoring your employees highly on their “quality” - tone, empathy, using the members name and thanking them for being a member.

You may be doing all of the above very well, but it is not enough to keep members loyal.

Why?

After ten years of consulting credit unions, I have not met with many that have the tools to track whether the credit union resolved the member’s need on the first call. Did the employee answer the member’s issue? Or was the member transferred to another area of the credit union? Does your contact center need to call the member back? Or, even worse, did you ask the member to call another number?

While these scenarios are horrible. The situation is worse because no one knows the extent of the problem. First Call Resolution is simply not tracked or reported.

First Call Resolution Rate – The BEST Driver of Loyalty

First Call Resolution Rate (FCRR) is the percentage of calls resolved on the first call without being transferred to another agent.

According to a 2009 report by The Ascent Group, “First Call Resolution is perhaps the most powerful call center metric. When you improve FCRR you’re improving quality, reducing costs, and improving customer satisfaction, all at the same time.”

FCRR is the primary driver of member satisfaction. Credit unions who improve FCRR usually see an improvement in their efficiency metrics.

We like to see an FCR of at least 90 percent. Why so high?

The Ascent Group report added, “An 80 percent FCR rate sounds pretty good. However, an 80 percent FCR means your customers call you, on average, 1.2 times to resolve a question or issue. This 20 percent in 'repeat calls' represents increased call volume, inflated operating expenses, and most importantly, dissatisfied customers. Dissatisfied customers are more likely to defect and more likely to tell others about their experiences."

There key to having a great FCRR is installing the proper tools to ensure the caller reaches the agent who can best assist them. This means having a call routing system in place to send questions about mortgages to the lending department or questions about password resets to the technical support department.

In the case of the small New England credit union we shared last week, partnering with a call center provider also made an impact on first call resolution. When we began working with the credit union, we found that only 75 percent of calls were being handled on the first call. In less than a year, the credit union changed their processes to empower their call center partners and agents to take action on a wider variety of calls, improving first call resolution to 88 percent.

So how can a credit union measure first call resolution? The simple way is to end each call with the question, “Are You Happy?” If so, thank the member for their business. If not, listen to their needs and keep working with the member to resolve their issue.

Related Articles
Is Your Call Center Solving Issues? Or Just Answering the Phones?
Don’t Think Basic, Think NECESSARY Call Center Metrics
Calls Cost, But How Much is Too Much?

Calls Cost, But How Much is Too Much?

Whether a call is made to your internal call center or your call center partner, there is a cost associated with it. Knowing the cost of each call determines the resources required to run a call center as well as its effectiveness. Two useful metrics to measure cost are Call Handle Time and Cost per Contact.

Call Handle Time is more than just the amount of time an agent spends on the phone. It is calculated by combining total talk time with total wrap-up time, which includes any follow-up e-mails, paper work, or calls. It is important to measure this because for many call centers, the administrative and follow-up can account for more than 50 percent of an agent’s time.

Cost Per Contact is one of the most accurate ways to measure efficiency. The metric is determined by dividing the total cost of the contact center by the number of calls completed. For example, if it costs you $50,000 to run your call center for a month, and you took 10,000 calls in that month, then your cost per contact would be $5.00.

Metrics Explained
Cost per contact and call handle time can vary greatly. Most credit unions aim for a cost per contact between $3.18 and $5.30 per call. However, maintaining a higher cost per contact ratio may be worth it if it means higher service levels. There is a real danger if questions are answered too quickly, and revenue and loyalty-building opportunities are lost.

Call handle time should also be compared to the types of calls an agent is taking. Complex issues, such as a new loan application, are going to take more time than a call to get directions to the nearest branch.

Measuring all these metrics can help credit unions make the changes needed to maximize the efficiency of their call center. I recently worked with a small New England credit union to improve efficiencies throughout the call center, including expanding their hours of service to 24 hours a day.

The credit union experienced a dramatic 71 percent improvement in cost per contact and 9 percent savings ($40,000) in annual contact center expenses even though they experienced a three-fold increase in call volume demonstrating the major scale advantage outsourcing brings. Additionally, the call abandonment rate dropped from 15 percent to three percent.

All of the metrics discussed to date have touched on efficiency. However, credit unions must be careful not to sacrifice quality for efficiency. Next week, we’ll look at more qualitative measures and how credit unions can ensure an efficient call center is also delivering the high quality demanded by its members.

Don’t Think Basic, Think NECESSARY Call Center Metrics

Previously, we introduced seven metrics credit unions must be measuring to ensure their call centers are driving revenue and member retention. Today, we’re looking at two of the most basic measurements for a call center – Average Speed of Answer (ASA) and Call Abandonment Rate.

Do not let the word “basic” discourage or distract you from reading further. These basics are necessary. While they are often measured, they are not always reviewed or analyzed. Blindly sticking to metrics, not digging deeper to understand the numbers means you are missing great opportunities.

ASA measures the time it takes for an agent to answer a member’s call. It gives credit unions an idea of how easily they are meeting service level goal or how much additional labor may be required to achieve a service level goal. The industry standard is 80/30, which means that 80 percent of calls into the call center should be answered within 30 seconds.

Call Abandonment Rate is the rate at which calls go unanswered. For credit unions meeting the 80/30 ASA, the abandonment rate should consistently be around three percent. Remember, the longer a member is on hold, the more frustrated they will be. Eventually, even the most patient caller will hang up, costing your credit union the opportunity to enhance that member’s loyalty.

Metrics Explained
A common misconception after hearing these metrics is credit unions should do whatever it takes to ensure every call is answered immediately, right? No!

I’ve met with two $1 billion credit unions during the past three weeks that employ a policy that all calls will get routed to the first available employee, even if it is the CEO. Sounds good on paper – theoretically, no phone rings more than twice. But what is the point of answering the call quickly if the member has to be transferred? The IT department is not suited to field requests for loan applications. The best use of the loan department is not to reset passwords. Even though the phone has been picked up, the member’s issue may still be unresolved. They’ve been put on hold or been required to repeat information with each new person who answers the phone. They will hang up frustrated and considering trying out the bank around the corner.

An ASA or Call Abandonment Rate that is high is also very expensive. If a credit union call center is staffed to provide a 90/10, they are paying exponentially higher costs due to agents sitting around waiting on calls. Most callers do not differentiate between a wait time of ten seconds and 30 seconds, so the key is to answer phones quickly enough to satisfy the majority of callers without wasting resources.

ASA and Call Abandonment Rate should be reviewed in balance with the rest of the key metrics. It is important that the call center be staffed well enough to answer the vast majority of calls in a short time. This reduces the lost revenue potential of calls being abandoned.
However, speed for the sake of speed will not ensure that your members’ needs are being met. To do that, you have to look at different metrics, which we will explore in depth next week.

Mac Has a Message for Credit Unions

Mac has built a very catchy ad campaign around its “Mac” and “PC” characters. The most recent ad really hits home the idea that Apple and its customers understand, appreciate and value excellent care and support.

http://www.youtube.com/watch?v=yZoGwZ9yiM0

Does your credit union have financial geniuses that are easy to reach? If a member called your credit union, would they get the department they need on the first call? Or would they be stuck, like our friend “PC,” yelling that they don’t want to talk to tech support, they want information about a mortgage?

Make sure you are there for your members. Make it easy for your members to get the information and help they need on the first call, without relying on transfers. Make sure your call center drives loyalty and revenue by exceeding your members’ expectations when they call.

Is Your Call Center Solving Issues? Or Just Answering the Phones?

A credit union’s call center is its busiest and largest branch, the primary channel current and prospective members will use to ask questions or resolve issues.

How can a credit union optimize its call center to be both effective in handling member concerns and efficient in its use of resources? There are many metrics to consider when running a call center, but there are seven I feel are the best. The first group is the basics – these measure efficiency. The second group is even more important – these measure quality and effectiveness. Effectiveness means that when you answer the phone, you actually meet and exceed the needs of your members.

The Basics

1. Average Speed of Answer (ASA): This measures the time it takes for an agent to answer a member’s call. This is an important measure, but do not focus too much here. You can answer the phone quickly and still fail your members.

2. Call Abandonment Rate: This is simply the rate at which calls are unanswered. The higher the rate, the more missed opportunities a credit union has for serving members. An ideal abandonment rate should be around 3 percent.

3. Call Handle Time: This is the amount of time an agent spends talking to members plus time spent following up on calls, emails or voicemails. This is a better measure than just call times. They will be spending time taking action on member calls, too.

4. Cost Per Contact: This is a measure of how efficient the call center is operating from a pure cost standpoint. Your credit union’s cost per contact should be between $3.18 and $5.30 per call.

Advanced Metrics

1. First Call Resolution Rate (FCRR): The best predictor of member satisfaction, FCRR is the percentage of calls resolved on the first call without being transferred to another agent. Credit unions should aim for an FCRR of 90 percent or higher.

2. Call Quality: This is the measure of an agent’s ability to do their job. A high call quality drives member loyalty and helps credit unions not just stay in business, but grow and thrive.

3. Agent Utilization: How productive is your call center staff? This is determined by looking a how much of an agent’s paid time is spent on member service. While few credit unions currently measure this, the ideal utilization is around 80 percent.

My next few blogs will explore each of these in more detail with real world credit union examples. Let me know if you have other ways of measuring your call center not listed here.

Are You “Hanging Up” on Your Members?

Have you ever arrived at a retail store just before closing? You beg silently – or not so silently – through the already locked glass door for admittance. There is just one thing you need. It isn’t even a “want,” it is a “need,” and it will take less than five minutes of the store’s time. You do a great deal of business at this store and would appreciate them acknowledging that by helping you now. Instead, the last employee in the store turns their back on you and walks away.

Above is a story of customer care gone wrong. Credit unions pride themselves on exemplary member service, but are you guilty of the same thing? Is your credit union turning its back on members that need help? I am sure you let last-minute stragglers pass by the closing doors at 4:59 p.m., but what if that member reaches out at 2:00 a.m. on Saturday or noon on Sunday? Below are three quick stories of credit unions that underestimated the number of members who try to reach them after hours.

1. A Northern California credit union with a worldwide membership expanded its contact center services to accept calls after hours (6PM – 6AM Monday through Friday). During call center testing, the credit union opened the phone lines, but did not advertise the expanded service to members. That month, the credit union received more than 1,500 calls.

2. We worked with a New England community-based credit union ($1.5 billion in assets) to break down the hours members were calling most for service. In one month, 28 percent of member calls came to the credit union outside normal business hours.

3. A small Las Vegas-based credit union realized after expanding its call center to 24/7 that the second highest spike in call volume typically came between 6:00 and 8:00 p.m., an hour after the call center closed prior to expansion.

Member service starts with a phone call. Credit unions that do not have 24/7 capabilities are losing business, because they have chosen to limit the hours they will interact with members. Instead of making sure they meet the members’ needs, they dictate the hours a member must do business with them. And those members will find other sources to meet their financial needs.

Four Credit Union Executives Explore Call Center Selection, Implementation and Management

Tomorrow, I will moderate a discussion among four credit union executives at the PSCU Financial Services 2009 Member Forum. I have included a description of the session below and will follow-up this week with a recap of topics examined and discussed.

Strategic Insights Session:
Total Member Care™ - 24/7 Contact Center Solutions For Service, Growth & Loyalty
Tues., April 7, 1:30-2:30 p.m. ET AND 2:45-3:45 p.m. ET

Listen to four credit union executives share their call center selection, implementation and management challenges and successes during this interactive, hour-long session. Audience members are invited to ask questions of the panelists who will delve into how they met an increasing demand for expanded member service, provided a revenue growth engine, reduced operational costs and built member loyalty for their credit union.

Forum attendees are invited to stop by the Total Member Care table at the Solutions Fair for product descriptions, demos and giveaways.

Moderator:
Pete Schmitt, executive director ContactUSA

Panelists:
Barb Baker, vice president, Contact Center, Delta Community Credit Union

Mitch Dormer, vice president, Strategic Initiatives, Chevron Federal Credit Union

Sally Fink, vice president, Member Services, Comstar Federal Credit Union

M. Brent Loyd, director, Member Care Operations, Texas Dow Employees Credit Union

Satisfaction vs. Loyalty

The other week, we discussed the need to move members from satisfied to loyal. To best achieve this in your credit union, it helps to have a better understanding of what separated satisfaction from loyalty.

Satisfaction means you met a very low bar of expectation. When I enter a credit union, I expect to have access to my money, make a payment on a loan or get answers to my questions.

Loyalty, however, means that I am an advocate for my credit union. I proudly tell others about the service I receive. I will go out of my way to use their services, even if another financial institution offers comparable terms.

William Bluel, a professor of Decision Sciences at Pepperdine University, explains the difference between satisfaction and loyalty at his blog this way:

Experience tells me, as do the definitions in several dictionaries, that satisfaction relates to the result of a process. The process may be a sales process, product performance process, or a service process. Loyalty relates to a relationship. Customer loyalty does not occur, but customer satisfaction can occur immediately following a successful process. Loyalty can, in fact, survive a negative process. Loyal customers will continue to purchase from a company even though they may have had a bad experience.

Even more surprising is the fact that satisfied customers will leave your credit union. Bluel also shares this:

Frederick Reichheld noted several years ago that between 65 and 85 percent of customers who defect said they were satisfied to very satisfied with their former supplier. As an example, Reichheld used the auto industry to make his point by showing that satisfaction scores are between 85 and 95 percent, while repurchase rates average only 40 percent.

What makes some customers loyal and some merely satisfied? The key is in building a relationship. Every financial institution – bank, credit union or non-bank lender – offers a variation of the same set of services. Some provide a way to store money and access that money with checks, debit cards and ATMs. Others lend money at various rates and repayment terms.

While some people will solely make their decision based on the final cost, the interest rate or the fee structure, most people involve other “intangible” factors. How am I treated when I have a problem? Does the credit union have my interests at heart?

Building loyalty is a three-step process. First, a credit union has to have a product someone needs – a loan package, a passbook account or a savings account. Next, that person must be able to conduct the transaction in a way that meets their needs and expectations. The final step is building loyalty. Loyalty requires building a relationship with the member.

Call centers and member service departments play a crucial role in the development of the final two steps. A member’s primary contact method with a credit union is by phone. Having a well-trained call center prepared to exceed member expectations is one of the easiest ways to build loyalty among your members.

Moving Members from Satisfied to Loyal

Almost every credit union I work with has a variation of the following in their mission statement:

Make sure every member is satisfied during every interaction with the credit union.

But if a customer is merely satisfied, without loyalty, they are going to leave your credit union and obtain financial services elsewhere. We would like to think that people are rational and make all of their financial decisions on facts, price and benefits. But we know better. As CU Grow so eloquently wrote:

Members are not going to remember a savings or loan rate. They’re going to remember someone at your credit union, who connected with them and went above and beyond the status quo.

This goes for all the touch points a member has with your credit union. It is relatively easy to monitor how well staff is working with members who visit the credit union in person. But how well are calls being handled? What is service like after hours? How easy is it for members to use your Web site and get answers to their questions?

These are questions that can only be answered by listening and being ready to do just a little bit extra. For example, if your member service call center is aware of an issue that will prompt a heavy volume of calls, they can preempt those calls with a proactive e-mail message or SMS text message letting members know important details.

For example, last month, much of the Midwest and East Coast were hit with ice storms and extended power outages. Imagine if your credit union’s call center reached out to your members a day in advance to let them know how to reach the credit union in the case of power outages and provided details on how services such as direct deposit or bill pay would continue to operate in inclement weather. I imagine, you would have gained not just a satisfied member but also a loyal one.

Small Gestures Make a BIG Difference In The Branch Or On The Phone

Everyone from credit union executives to the members their credit unions serve have a million and one things on their to do list each day. If that is not true literally, it sure feels like it sometimes. The below blog entry from CU Grow speaks to making the most out of those mere moments with members.

“Small Gestures Make a BIG Difference in 2009”
Rushing in and out as quickly as possible is probably what many of your members are doing right now when they walk into your credit union. They are in a hurry, with a list of fifty things to do and want a quick credit union experience. Now, it is important to note that “quick” does not mean curt or impolite.

The same importance that is paid to in-branch experiences should also be paid to call center service. Whether you can see their smiling faces or just hear their harried voices, call center and member service representatives should be prepared to deliver total member care 24/7.

I would even argue that those frantic phone calls over the weekend to your call center help better define your credit union's relationship with the member than the weekly in-branch visit and transaction...and the numbers don't lie. In 2008, our call center received 2,271,400 calls, which was up from 1,699,300 total calls received in 2007, and we expect to see even more calls in 2009.