That NPS score…are there bigger and better ways to measure loyalty?
Does member loyalty really translate to greater share of wallet?
What is the connection between loyalty, member effort, member satisfaction, member engagement, and wallet allocation?
And how do you benchmark against peers?
We found these questions from our owners intriguing, so we recently kicked off our Member Loyalty & Satisfaction Project with the goal of providing our owners with meaningful member measurement models and best practices. We’ve teamed up with our friends from Baker Tilly for this initiative who expressed their own thoughts on this trending topic: “Historically, Net Promoter Score has been a focal point for many companies. With the ever changing financial services industry and rising member expectations, we believe that exploring supplementary measurements to create a multi-dimension view of members is key to increase your members’ loyalty and satisfaction.”
Here are some highlights from our research so far:
- We recently conducted an owner survey asking our credit unions about current Member Loyalty & Satisfaction practices in order to identify areas of improvement and drive the future direction of our research.
- In tandem, we conducted interviews with our project’s Advisory Team to dive into specifics about Member Loyalty barriers, logistics, and goals. This provided us with qualitative data to complement our survey results and further understand the status quo among our owners.
- From all of this data, we have gathered some very meaningful insights on this topic for our owners. For example, NPS scores are by far the most heavily used metric (96% of our owners are using this score). However, our owners have indicated that they are not satisfied with the limited information the NPS score provides and would like to utilize other metrics to build on member satisfaction data. One owner was quoted stating, “With our NPS surveys, we do not have the infrastructure and data to innovate ourselves.” Another said, “I really don’t see the correlation between NPS, satisfaction, and growth.” From these statements it is clear that there is a BIG opportunity to improve member loyalty practices for our owners that take into account more meaningful and actionable member data.
- In addition to the survey and first-person interviews, we also conducted our own primary research for this project. Supporting our owners’ dissatisfaction with the sole use of NPS scores, we found that using only one metric to measure satisfaction is not nearly enough information—instead, credit unions should consider using a more nuanced, multi-dimensional approach.
So where do we go from here? We have clearly identified a need for more developed member loyalty metrics and models for our owners—but exactly what other data are we talking about? We have been looking into several other member metric possibilities for our owners including: Customer Effort Score (CES), Customer Satisfaction Score (CSAT), Customer Retention Rate (CRR), First Contact Resolution (FCR), Customer Engagement (CE), and Wallet Allocation Rule (WAR). We look forward to continuing progress on this project and are excited to see the results. In the meantime, check out the full slide deck of our research in MDC Connect, or email Sarah Lietz with any thoughts!