Tips for CEOs - Tiered Services Monthly Comparison

The following are tips for CEOs when using the Tiered Services Montly Comparison screen when preparing for Board Report meetings.

Understanding Member Demographics

This could be a day in itself – consider that with the group and brainstorm on how to use this option in every aspect of managing your credit union. Point out that the dashboard is:

1.   A centralized penetration analysis with automated trending for the entire time you are on CU*BASE. It tracks progress on goals for increasing member product and service penetration.

  • Discuss your credit union penetration awareness and tools you use daily, weekly, monthly, and annually to understand what and how much members are doing with the credit union.

  • Is it clear to everyone? Can you improve it? What would the group like to know?

2.   A member relationship analysis scorecard system that allows you a picture of how a member’s total services, product use, and balance contributions add up. It segments, for lack of a better word, the levels of membership from customer to member to owner

  • Discuss with the group why a score card is valuable to managing a credit union.

  • Discuss your member relationship tactics and what is available to you.

  • Gauge how aware the group is of your program and ask them for the reasons it’s valuable.

  • List the top 3 to 5 motivators in your program or a program you would like to set up.

3.   A dashboard for automated communication and direct contact strategies, with easily recognized member demographics like age and gender.

  • This dashboard, in unison with Member Connect, can generate data files for all kinds of contact strategies. So the whole A.S.A.P. (Ask, See, Act , Profit) process is directly tied into this option.

  • Good place to talk with the Board about the management style of A.S.A.P. – so that the balance of the discussion can have a proactive focus-group feel as to “what do you see we can act on?”

 

So after selling the value, time to get to work...

·Bring up the Dashboard and select the months you want to trend for the Board brainstorming/presentation. Three formats come to mind if you have been on the system long enough:

1.   Annually comparing the last four years.

2.   Quarterly for the last four quarters of the current month.

3.   The last four months.

The key thing to stress the first time you do this is the flexibility to brainstorm over different timelines. But for this presentation use the longest timeline to get the best view of changes in your member penetration.

We’ll start with the Penetration Concepts. On the initial “Summary of Members Scored” screen:

  • Review the concepts and performance of your membership in relationship to the “average Products per Member” and the “average Services per Member” figures on this summary screen.

  • Draw the group’s attention to the correlation between the lowest and highest tiers and how PPM and SPM increase or decrease. Talk a bit about these measurements and how they are calculated and used by the CU.

Then move on to meat of the Penetration Analysis presentation. The remaining screens in this dashboard are separated into goals related to how you hope member will use your products and services:

Goal One: Primary Financial Institution

Goal Two: Analyzing Member Savings

Goal Three: Analyzing Member Loans

Goal Four: Analyzing Member Self-Service Products

Goal Five: Analyzing Member-Elected Deposits

For all of the items listed under each Goal, you can see the standard Trend display and two Comparative Relationship Breakdowns (to see these, drill down by clicking on the lookup button images\magnifyingglasslookup_shg.gif in front of an individual item on any of the Goal screens).

The Trend display cites the number of members who scored for the product or service, the % of your total membership.

  • Use this display to discuss how each line represents the need to declare a plan for penetration improvements, the opportunity for realistic growth,

  • What are the outer limits? What does the trend say about our performance and the ability to truly see the effective audience of members using this product or service?

Drill down images\magnifyingglasslookup_shg.gif to the first of the Comparative breakdowns:

What are the items spread over the four levels of relationship tracking? Does it indicate a clear signal to one end of the spectrum or not? (For example, if heavily weighted to your “Platinum” Tier 4, does this indicate that participating in this level is a signal of the “best” members?)

Note the members at each level, their %, and balance relationships. Are any of these groups significant based on their lending or savings relationships? Should you know these members and what tactics should you use?

Remember to contrast the concept on which you are drilling down (such as Active PC Banking Members) and the effect on Loan or Savings balances. Are big savers always small borrowers? Is there a correlation? What does it mean when the Platinum (4th) Tier has a lower percentage of the savings or lending balances than a Silver (2nd) Tier? Highlight both the intuitive and the counterintuitive trends and have the group discuss why.

Use F11- Demographics to see the second Comparative breakdown:

The screen now displays the gender, age, and email penetration with each level. Are any of these groups significant based on their lending or savings relationships? Should you know these members and what tactics should you use?

Your credit union may or may not have gender goals, age goals, etc. But if you do, how does this display confirm or not confirm where you hope to be going? If you have none, should you?

Today email addresses are gold – what does your penetration of email addresses in relationship to the drill-down concept say about your ability to talk to this demographic? What should you do next? Brainstorm on targeting this group to increase your email address collection.

Now is the time to talk about automated communication capabilities and what this screen should prompt in everyone’s thinking:

Prompt the group to select different member perspectives from the screen (for example, Platinum PC Banking Members who are Male and average 51 years in age versus Silver PC Banking Members who are Female and average 46 years in age)

Have the group consider a short message that you might send to the group they selected – write it down, brainstorm on all kinds of messages.

Demo how easy it is to select a group, export a file, and link that file to Member Connect contact tactics.

 

Consider what this might mean to the frequency, the directness, and the approach to targeted sales and follow-up programs.