Standing in Your Members’ Shoes (Credit Union Conference Presentation)

Standing in Your Customers’ Shoes

Presented by: Martie Woods, Vice President and Chief Experience Officer June 30, 2011
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 How the loyalty conversation has changed
 A case for change
 Why trust still matters
 Shifting to value

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©2011 Deluxe Enterprise Operations. All rights reserved.

Loyalty: The progression of the birthday party

Transformations
Experiences

Services

Goods

Commodities

Joe Pine & James Gilmore
Welcome to the Experience Economy

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The Case for Change…

1. Demographics
Digitally-savvy kids are changing everything. Including,
their boomer parents.

Women are taking over. She-conomy.

Nationally, minorities will comprise
40% of the population. In CA,
they will be the majority.

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2. New Demands
Stop thinking fast and convenient.
Think time well spent.

Consumers are increasingly picky, yet
patient. Not because they think we deserve
time to serve them.

Because they have iPhones.

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The Case for Change….

3. Savings
Consumers are increasing savings at a rate double what it
was in the ‘80s. At the same time, they are spending and
borrowing less.

Our industry is no longer making its money on deposits and
loans. Savings and investment products will prevail.

Consumers still expect free.

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The Case for Change….

4. Small Business
Niche products and services will
prevail.

Health, wellness and local foods.

Supports movement away from
traditional employment.

Mid-sized business will be acquired
into large corporations, paving the
way for more small businesses.

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5. Regulations
Consumers do not see a relationship
between regulations and product.

Nor do they necessarily know
whether a constraint they are
experiencing is due to a regulation
or a bank policy.

People don’t want to know how sausage is made.

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A New Look at Trust

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Why trust still matters

 State of trust
 Two kinds of trust
 Impact on your brand

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Trust – 2 Kinds

Macro
Trust
Micro
Trust

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Trust
MACRO

When the world is good,
consumers trust further and
further out from their ―inn
er
circle‖.

MICRO
When the world is bad,
consumer‘s trust is held
―closer to home‖.

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Guiding Principles to Trust

 Each consumer weighs decisions against
their levels of Micro Trust and Macro Trust.

 When distrust is high in either sphere, it
compels them to action.

 Consumers are looking for ―c to home.‖
lose
Consumers want to trust people and
organizations who are close to home.

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Trust/Selling Paradox
Sell

Trust

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Simplicity

 Take time to explain policies and terms
in clear, simple language, and it feels
like added value.

 Trust erodes when the deal is too
complex, the language is too legal, or
conditions change without
straightforward explanations.

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Transparency

 Transparency is created when the sales
conversation includes:
- The up and down sides of choice
- The benefits and sacrifices attached to their
choice
- Information about the inner workings of the
credit union
- Disclosure of potential penalties if the
member doesn‘t comply with the terms of
their choice

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Presenting Options

 Members respond positively to sales situations
where they feel they have options.

 Options provide them with a sense of shared
and feeling that the credit union is ―h
onoring my
thought process.‖

 Give the member a sense of control by providing
clearly delineated options in sales situations.

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Factual Credibility
 Feature-based statements are a better way to build trust than
benefits-based statements.

 Benefits statements alone are even less effective for members
because they‘ve learned that life isn‘t all ‗blu sky‘ and that the
e
benefits statements are meant to persuade.

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Authenticity
 Trust is built when the conversation feels
genuine and real.

 Even scripted sales situations and typical
sales language can shift from trust-killer
to trust-builder with the addition of
authenticity.

 Statements peppered with a little
bit of relevant fact feel genuine,
real, and authentic –
and build trust.

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Back It Up
 Back up your offers with printed literature, comparison charts,
or (even better) hand-written offers.

Product A Product B

2% int. 3% int.

Term: 3mos Term: 6 mos Jennifer’s Car Loan –

$500 min $900 min $120/mo

24 mos.

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It‘s All About Trust
 Watch for the elements of your
conversations that erode trust.

 Incorporate language, techniques and
tools that build trust.

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The Brand Promise
Branding –
Make a Promise

Brand

Make a
promise Execution –
Keep a Promise

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Shifting to Value

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Make Money in a New Way

 See the opportunities.
 Stop charging for what costs you money.
 Start charging for what members value.

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The New Division

Deeper
relationships
focused on
achieving
positive financial
goals
Plus, an
interest in smart
spending

Transactional relationships

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This is bigger than a product, a service,
a program…..

this requires a paradigm shift.

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Think About It…

―
When you change the way you look
at things, the things you
look at change.”
- Wayne Dyer

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Why are our members
obsessed with FREE?

Because we trained them to be.

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This is what we have promised our customers and members:

―
We‘ll hold your money for free.‖

These two words are undermining our ability to create value in
the minds of consumers:

We‘ll hold your money for free.‖
―

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What consumers hear

hold free
―It yours and we
‘s ―There no charge‖
‘s
are borrowing it‖

All of the industry efforts have been focused on
eliminating free—not on changing the assumption
that the credit union holds their money.

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To change consumer
perceptions of credit unions,
it will require more than
an individual marketing
campaign associated with a
product change.

The industry will need to think bigger and join forces.

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Standing in Your Members’ Shoes (Credit Union Conference Presentation)

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