Igniting CRM Strategy

Despite the ebb and flow in popularity, customer relationship management, used by credit unions for more than two decades, has come a long way since the early days.

Today’s CRM can monitor spending patterns, define channel preferences, and reach members at the most opportune time in their buying cycle. Technology is built to capture and track member data at miniscule levels. Still, perceptive sales leaders realize it’s not so much about the software, but how staff adopt and use the software.

What’s Different Today? 

“A CRM system should be used as an instrument for change while transforming the member experience through the use of business analytics,” says Chris Braccia, director/product management at CUES Supplier member D+H, Lake Mary, Fla. “The ability to leverage business analytics with CRM capabilities is essential, and makes the data a uniquely powerful tool.” Braccia adds that successful CUs share the business analytics information with the staff who reach members every day, rather than just within management or the marketing department. “When championed throughout the entire organization, employees can better understand buying behaviors and see where members are on their financial path.”

CU leaders are often surprised by what they learn from the data, observes Laura Abraham, director of finance and banking for IXI Services, a division of CUES Supplier member Equifax, San Francisco. “Initially, credit unions feel quite certain they know their members. But after reviewing detailed member data, including the integration of relevant third-party data, leaders gain a more accurate view of their members.”

Marketing Optimization

What should be no surprise is the pinpointed ability to target market. Braccia says that CUs are seeing new value in using business analytics to segment and better understand member needs, and craft targeted offers accordingly. “A credit union can examine the entire member relationship—combined with demographics, and profitability and behavior models—to anticipate needs and grow the relationship.” Strategies may include a new product design, a dedicated (or concierge) phone line, expedited loan services, rewards and even special microsites and other targeted channel offers to member segments and identifiable groups.

For $2 billion/180,000-member Georgia’s Own Credit Union, Atlanta, analyzing CRM data lets staff “peel away the layers” and identify members who qualify for certain products and services or have the propensity to buy. “Staff speak to members differently based on individual preferences, and conversations occur on a very natural, relevant level,” says CUES member Amy Eagan, VP/marketing and sales for the CU. “When staff can use the CRM to identify needs straightaway, they’re better able to serve our members.” 

Needs identification is also amplified with the right third-party data. “For example, at IXI Services, we help credit unions segment their members, comparing the most granular aspects of financial capacity, demographics, psychographics and transactional behavior,” says Abraham. Quality third-party data can help reveal the full picture as well, providing such factors as estimates of total investable assets, income, credit reliance, spending behavior, the next best cross-sell product and more.

Plus, CUs are using CRM capabilities to monitor messages within the members’ preferred channels, so the right product is offered at the right time to the right person. This enables the CU to deliver consistent messages to members across multiple channels, as well as enhance enterprise-wide and omni-channel marketing strategies. Abraham notes that you can’t always bucket members into one strategy based on a single characteristic. “But with intuitive data, small details create the bigger picture, enabling leaders to optimize their marketing messages, manage resources effectively and reduce costs.”

Braccia concurs, reiterating that a fully embraced CRM culture enables the CU to take a combined channel management approach, leveraging consistent messages and offers not only at the member service representative level but within all the member’s preferred communication channels.

Be a Super-User

For this to happen, the CU must, unequivocally, use its CRM. “Set standards from day one as to what you expect from your front-line staff in using the system and accountability,” says Eagan. “If a referral or transaction didn’t enter the system, then it never happened.”

Of course, prepare staff with plenty of communication beforehand, so they understand the reasons behind using a CRM. The more advance preparation and thought that leaders devote to CRM integration, the more fruitful the adoption levels. “It’s not just a marketing tool,” stresses Eagan. “There’s something in it for everyone; with effective CRM strategy, members receive better service, staff feel confident in their roles as advisors and sales increase.”

CUES member Jackie Buchanan, CEO for $1.9 billion/178,000-member Genisys Credit Union, Auburn Hills, Mich., says getting everyone on board can be readily accomplished from day one–if you create demand for the tool first. “We planned it that way,” continues Buchanan, with her CU creating a clear-cut sales culture before CRM implementation. That was five years ago. Today, the sales culture is incentive-based, with member-facing employees having minimum standards to meet. 

“It’s easier for staff to meet their goals using the CRM,” says Buchanan. Part of the CU’s core processor, the CRM system is Touché (a D+H product) and requires no dual entry by staff. “Even new accounts are opened within the CRM, which automatically tracks sales production. Marketing elements merge into the system seamlessly, enabling staff to see pending offers and reminders. Staff appreciate the time savings, so they can spend quality time with members, which translates into sales and better service. And because the system is easy to use, supervisors can train staff quickly.”

Eagan reiterates that a targeted CRM strategy enables front-line staff to not only meet sales objectives but also become better equipped for their jobs. “They learn more about the members and forge stronger relationships. Marketing campaigns also gain momentum when staff can make expert product recommendations based on member needs presented in the CRM data.”

Case in point: In the fall of 2015, Georgia’s Own CU offered a select member segment a zero percent credit card offer on new purchases for 12 months. The promotion isn’t running any longer, but for members who signed up, they have several months left to save, explains Eagan. Staff can readily see which members qualified for the offer within the CRM system, which makes the perfect segue for a targeted conversation and to remind members of the offer. Results aren’t ready yet, she says, but staff participation in any promotion always increases the bottom line.

What to Look for in a CRM System

“Functionality, cost, ease of use, vendor support and training are factors to consider,” says Buchanan. Industry knowledge and a vendor who’s looking to the future are equally important. For example, what trends are around the corner that a CU can capitalize on? Will that vendor be ready to assist as those trends emerge?

Buchanan says not to be deterred if the CRM system offered through your core provider doesn’t have every tool you wish for. “Most CRMs can’t be everything to everyone. If you have a strong partnership with your core provider, that goes a long way in implementing a CRM successfully across the credit union.

“Lean on your provider as a valuable resource, and then seek third-party plug-ins or data sources to enhance the system,” she adds.

Measuring Results, Missed Opportunities 

Prospects reached, products sold, balances increased, expenses reduced or channel cost reduction are all measurements CUs track.

For Buchanan, sales support and efficiencies take priority.

“Our CRM system has helped us to become the most efficient credit union in Michigan for five out of the last six quarters when comparing our efficiency ratio to peers,” she explains. “And since the CRM’s implementation in 2009, annual front-line loan production has increased 270 percent.”

Key peer ratios are tracked quarterly from NCUA Financial Performance Reports, and loan production is monitored and measured internally, Buchanan says.

She is certain that CRM tools have contributed to overall performance, enabling staff to increase productivity and efficiency by targeting member needs and reducing duplication of effort (which reduces cost).

Eagan measures success by efficiencies, new member acquisition and product assimilation over time.

“We’ve had great success with leveraging loan campaigns for new member acquisition,” she says. “For example, in 2015, a large percentage of new auto loan dollars, 25 to 30 percent, came from new members. We also track the numbers over time to determine which promotions we want to run again.”

Abraham adds that by determining and focusing on market segment needs by review of the data, it’s much more likely members and potential members will respond to a CU’s brand. “Then, circle back to measure results. See which segments were most responsive through a retro analysis, and use those findings going forward to streamline future marketing programs.”

Using reporting measures for senior management, Eagan proves the benefits of running a promotion and how those benefits outweigh the cost.

“Ultimately, you want to gain a profile of the person who took your offer and use that data going forward with future offers and media choices,” she explains. “If a promotion appealed widely to new members, use that same channel selection next time. If it didn’t, re-evaluate and make adjustments.

“More targeted messages, however, may resonate only with existing members, requiring a narrower channel selection. Reviewing and understanding campaign results within your CRM can help you to make these choices.”

Data Insights for SEGs 

CUs are also using CRM strategies on a more sophisticated level to manage select employer group relationships­—for data collection, customization and needs determination.

“To be effective, though, the system and its data must be at the employees’ fingertips, and mobile capabilities are an absolute must,” says Julie Ferguson, owner of JRF Consulting Services, LLC, Philadelphia. “This means having access to the system on the road through tablets and other mobile devices so employees can record detailed notes about the relationship in real time. The more detail acquired, the more accurate the profile and better the marketing capabilities.”

CUs realize that CRM software can be affordable as well, as low as $24 per month in some instances. “There’s this misconception that CRMs have to cost a lot to work, but that’s just not true,” says Ferguson. “Some of my clients would have launched a CRM much earlier had they realized that robust capabilities are available at a reasonable investment.”

She notes that Salesforce is still a top provider of CRM software, but Highrise and Zoho are more affordable options than Salesforce, and even Microsoft Outlook integrates basic CRM software through Microsoft Dynamics.

When reviewing options, Ferguson suggests separating system must-haves from perks. Options can include the ability to customize fields, run full marketing campaigns for SEG employees, assign tasks, launch email blasts or send e-newsletters to contacts. “The ability to customize is key,” she adds. “The CRM can provide what you need and allow you to create reports, track metrics and share successes. And remember, the driving force behind any CRM is the ability to capture the data in one place. For SEG work, in particular, it creates an effective tool to track results and implement next-step tasks.”

Just like the individual member level, it’s about nurturing relationships. “The more you can learn about your SEG and its needs, the more successful your efforts,” reminds Ferguson. 

Proactive, Not Reactive

CUES member Dennis Paul, VP/business and community development for $1.5 billion/112,000-member Elevations Credit Union, Boulder, Colo., uses Salesforce exclusively for SEG and business development. His CU houses all SEG activity in the CRM, including SEG demographics and profiles, email blast capabilities, appointment data, date of next contact and a tickler file. The result? A business development team that can work smarter, rather than harder, for increased productivity and more loyal SEG relationships.

Regarding production, Elevations CU views its business development division much like a branch. Consider what a staff of three produced in 2014:

• scheduled 762 events in Salesforce;
• opened 846 new member accounts (compared to a branch average of 1,018);
• attained 173 percent of loan goals;
• attained 134 percent of new member account goals;
• delivered 72 onsite educational presentations; and
• made 116 investment services referrals (compared to a branch average of 57).

“We’ve seen an entire shift in culture; we’re proactive vs. reactive, and instead of working to catch up, we’re working on future initiatives.” Paul adds that the true essence of CRM is to create strategies and to make the software emotionally driven, not transaction-driven. “Use it to build relationships and form relationships by asking questions of your prospect, SEG or member. Input all findings into the system. It will prepare you for the next conversation centered on emotional ties, not transactional detail.” 

The Expectation Gap

If CRM is underutilized, not embraced by staff, and not part of the culture, results will be undermined. This fact not only concerns the CU’s front-line staff but at all levels of management. Avoid disappointment, and clarify in writing a strategy for implementing CRM. Prepare staff with a comprehensive explanation so they understand the importance of using the tool.

 “Determine how you want to execute beforehand,” says Braccia. “Perhaps it’s rolling it out at a few branches first and overcoming obstacles early. By starting slowly, you can optimize the systems at a few locations and develop CRM experts at these branches who can then assist with training other branch experts.”

Also, with a fully integrated CRM, information is available in real time, and management should make it a best practice to leverage this information to make appropriate changes as marketing campaigns are occurring. Eagan concurs: “Use it as a tool to paint a picture of how and why certain promotions are successful or what offers drive growth.”

Delight Members

After investing in the system, are members experiencing something innovative, new or different? “When you understand member needs, you can delight members as their trusted advisors,” says Braccia.

A CU can also view member data differently as new ideas or trends begin to emerge. Members take on buying personas, and increased segmentation can deepen relationships. “Look at these CRM strategies as a way of doing business and an instrument for change,” concludes Braccia. “Remember, success is less about the technology and more about using it to execute strategies that allow staff to impact the member experience.”

With 25 years of marketing and communications experience, Stephanie Schwenn Sebring established and managed the marketing departments for three credit unions. As owner of Fab Prose & Professional Writing, her focus is assisting credit unions and industry suppliers with their communications needs.