Welcome to: New Member OnboardingWe will begin promptly at 1pm CT

Want more?August 24: Increasing Member Loyalty

Member loyalty is arguably the most important factor for credit unions today. It costs 5X more to find a new member than keep an existing one, yet it’s estimated

we spend 44% more on acquisition than on retention.

Hear from 4 credit unions who have harnessed the power of member loyalty.

Register Now

Meet Your Speakers

Intentional OnboardingJosh McAfee, Vice President of Marketing

Leaders Credit Union

We’ll cover• Dedicated onboarding flow• Effective segmentation• Success metrics (KPIs)• Onboarding ≠ selling, but involves it

Quick Profile

• Headquartered in Jackson, Tennessee• Chartered in 1957• Operations in three counties separated by 70

miles each (soon to be six counties)• $300M assets• 40,000 members• 1.12% ROA; 12.18% Capital• Many consecutive quarters 100%+ loan-to-share

The Loyalty Team• 7-person crack squad

• 1 manager, 2 in sales, 2 in service, 2 processors• Program has grown from one staffer in 2012• Originally developed as a response to

indirect lending growth

Workflow• Traditional new member mailing

• Local printer warehouses inventory and receives data file to automate delivery

• ALL members receive a “signed” welcome card from our staff

• Email educational series in first 300 days of membership

• 7 messages triggered by # days past join• Separate “paths” for direct and indirect

Welcome Card

PERKS offers

Effective Segmentation• Loyalty applies logic to in-person calls

• Minimum credit quality thresholds• Refinance opportunities• Competitor checking relationships

Segmentation (cont’d)• Warm welcome response dictates follow-

up• No-answers and cold-shoulders move to the

bottom of the list• Expressed interest and purchase promises are

documented for all staff to view• Contact management software drives

daily schedule of communication

Meaningful Metrics• Length of membership is key

• However, first 120 days are indeed critical• Look at national averages to provide context

• Average checking rel. = 6 years• Average auto loan rel. = 28 months

• New money or buyout?• New money indicates you’re relevant.• Recapture indicates you’re selling to the need.

Metrics (cont’d)• Consider elements staff can control

• Volume and yield are controlled by outside factors

• For “young” onboarding programs, watch trends (e.g. average PPM/H, average balance, etc.)

• Direct vs. Indirect matters• Don’t expect comparable performance• Direct chose you; you chose indirect

Onboarding ≠ Selling• …but the two are related.

• Great onboarding should yield higher sales• Treat recapture/refinance as educational

opportunities for the new member• Prioritize service to drive brand loyalty• Context is key

• Is your onboarding performed by desk staff or in a dedicated environment?

• Is trust implicit or yet to be earned?

Josh McAfeeVice President of Marketing

Leaders Credit Union

731.410.2068 | direct

731.803.0708 | mobilejmcafee@leaderscu.com@joshismyntcue

Questions for Josh?

Importance of Onboarding

Royce NgiamAssistant Vice President, Marketing

Partners Federal Credit Unionroyce.ngiam@partnersfcu.orglinkedin.com/in/roycengiam

• Over 1 in 3 active Disney Cast Members, Employees, and Imagineers

• Senior Executives to Hourly Attractions Attendants

• Over 127,000 Members

• $1.4 Billion Assets

• 13 Branches, California and Florida

There’s only one metric that matters, everything else is nice to know.

Confirmation Bias – Peter Watson

• Online Banking (Mobile Banking, Remote Deposit Capture, <whatever vendor is trying to sell you>) is a sticky service.

• People who move are more likely to leave the CU.• It’s cheaper to keep an existing member than acquire a new

one.

The tendency of people to favor information, true or not, that confirms their preexisting beliefs.

Partners Attrition Study• Attrition as a catalyst• 2/3 of the closed accounts were to members in our lowest

engagement deciles.• 58/43 distribution of mobile banking users between closed

accounts – no correlation• 35/65 distribution of online banking users between closed accounts

– would seem that online banking users are more likely to attrite!• Over ½ the members that closed their accounts did so in the first 2

years. Over 1/3 closed in the first year.

Products and services don’t make members engaged and loyal.Effective onboarding is key – set them up for success.

Welcome PON• Every Monday• 146.85% Total Open Rate• 43.83% Total Click Thru Rate• 24.48% watch the Partners Difference

Video• 33.33% learn about Mobile Banking• 11.36% watch our ATM Video• https://www.partnersfcu.org/resFiles/

media/emails/pon-welcome-2016.htm

Monthly PON• Mobile Optimized• Animated• Encourages Engagement• Relevance• Timing

• Results • Unique Open Rate – 29.60%• Total Open Rate – 57.38%• Click- Thru Rate – 17.69%

• What are we advertising?• eMail Performance

• 24.94% Open Rate (30.27% avg)

• 4.40% Total Click Thru Rate (3.56% avg)

• $6,963,089 in mortgage balances

There’s only one metric that matters, everything else is nice to know.

Branch Participation 2-2-2• 2 Days – Handwritten Thank You Note• 2 Weeks – Service Call• 2 Months – Sales Call

Closing Thoughts• Engagement is the goal, the product sales will become easier

and more organic.• Messaging must be relevant and timely, with digestible

content that benefits the member.• Onboarding is a series of activities, not a one shot or matrix

deal.• Consider your sustainment plan – it’s as important as your

onboarding.

The uninformed must improve their deficit,or die.

Royce NgiaimAssistant Vice President of MarketingPartners Federal Credit Union

(818) 558-4525royce.ngiam@partnersfcu.org

Questions for Royce?

5 Essential Onboarding Strategies for Credit Unions

Presenter:Sandi Carangi, CEO

About Us

• $75 Million in Assets• Nearly 10,000 members• Community Chartered

– Mercer County in Western Pennsylvania• Originally chartered as a teacher’s credit

union in 1957

Onboarding MethodologyRule #1: First 30 to 90 days are most important.

Ways to cross-sell without cross-selling: be helpful, share your expertise, answer questions.

Rule #2: Online banking and online bill pay are the ‘stickiest’ services.Source: Fiserv 2010 white paper: Developing a Successful Onboarding Program to Drive Customer Loyalty and Profitability.

5 Best Practices for Cross-Selling• Focus on what you know – a lot – you are the expert

(helping members save money and providing valuable tools)

• Selling without selling – education – handout information

• Generational markers – life stages • Overcoming objectives – courteous and helpful

translate to competent and knowledgeable • Follow up is crucial – create email template that

answer frequent questions, letting you fill in the blanks with information to members

Preferred Banking Method• Internet Banking (laptop or

PC) – 32% (31% in 2014) • Branches – 17% (21% in 2014) • ATMs – 13% (14% in 2014) • Mobile (cell phone, Blackberry,

PDA, iPad, etc.) – 12% (10% in 2014)

• Mail – 7% (6% in 2014) • Telephone - 5% (7% in 2014) • Don’t Know - 13% (11% in

2014)

ABA Survey: More Consumers Turning to Mobile Banking - Source: American Bankers Association (ABA), July 2015. http://www.aba.com/Press/Pages/081115MobileBankingSurvey.aspx

Relationship Channels

Preferred Banking Method of US Consumers, by Age - Source: American BAnkers Association (ABA) survey conducted by IpsosPublic Affairs as cited in press release, Sep 20, 2010. More Products = Greater Stickiness - Source: Bancography

Onboarding Strategy1. Timing is Everything

• Within one week• Within 30 days• Within 60 days• 90 days and beyond

Onboarding Strategy2. The Message

• Relevant • Valuable• PS – Offer Incentive• Ideas

Onboarding Strategy

3. Follow up is essential• Respond to requests within 24

hours or sooner• Preferred communication channel

Onboarding Strategy

4. Continue to build relationship –• Team effort• Teller pop-up screens• Family and co-worker incentives• Promotional handouts

Onboarding Strategy

5. Measure Results and Make Adjustments • Tracking system in place• 2 months/6 months/1 year• National average PPM is 2.2• PPM goal 3 – 4 • Know your credit union PPM PPM Source: Callahan & Associates 3/12

Onboarding Strategy

Only 40% of credit unions actively engage in onboarding initiatives

• Develop a process• Example letter • Example marketing materials

Sandi CarangiChief Executive OfficerMercer County Community Credit Union

(724) 981-9410 Ext.11scarangi@mercomfcu.org

Questions for Sandi?

Additional Questions and Discussion

Thank you!

From New Member to Loyal Member

August 24 at 11 am CT: Increasing Member Loyalty

Member loyalty is arguably the most important factor for credit unions today. It costs 5X more to find a new member than keep an existing one, yet it’s

estimated we spend 44% more on acquisition than on retention.

Hear from 4 credit unions who have harnessed the power of member loyalty.

Register Now