Chicago, Illinois (August 5, 2011) Member Loyalty Group released their 2nd quarter credit union Net Promoter® benchmark score today and reported that, on average, credit unions have a 58% Net Promoter® score compared to only 18% for banks1.
Michelle Bloedorn, CEO of Member Loyalty Group said, “The findings really validate what we in the credit union industry have seen time and time again, that members are significantly more loyal to their credit unions than bank customers are to their banks – and that translates to considerable, tangible business benefits.”
According to a 2010 study conducted by Bain & Company, Inc. titled “Customer Loyalty in Retail Banking”, customers who are Promoters stay longer with their banks, buy more products, refer more new customers and cost less to serve. Additionally, Bain found that loyalty leaders enjoy a growth rate that is 10% higher and a cost of funds 80 bps lower than those banks that are considered price leaders.
Bloedorn noted that while this general industry loyalty advantage spells good news for credit unions, she cautions that “You can’t assume just because you are a credit union, that you are also a loyalty leader. From our experience, individual credit union Net Promoter® scores can vary widely. In our recent benchmark study, we saw individual credit union Net Promoter® scores range from as low as 19%, to as high as 75%.”
Member Loyalty Group, a CUSO formed in 2008, was created to develop a common member loyalty benchmark for the credit union industry. “Our CUSO has seen tremendous growth.” Bloedorn added, “We have over 25 clients across the country, of various sizes, all committed to measuring member loyalty and collaborating to create better member experiences.”
Member Loyalty Group, partners with Satmetrix, the Net Promoter® company, to provide credit unions with the most effective tools to manage a Net Promoter® program. This unique solution allows credit unions to collect and act on member feedback so they can increase member satisfaction and efficiency, while driving bottom-line profitability and growth. Satmetrix, the co-developer of the Net Promoter® Score has a proven track record of accelerating the success of large-scale, integrated customer experience programs with more than 700 enterprise deployments. Its clients include some of the world’s most customer-centric companies, including Experian, Symantec, ING, HP, Lenovo and SONY. Together, Member Loyalty Group and Satmetrix provide the only common framework for measurement and comparison of member loyalty in the credit union industry.
Bloedorn added, “Our credit union owners are excited about the momentum that Net Promoter® has been gaining in the credit unions and are equally pleased that we have been able to provide the gold-standard benchmark for the industry.” As a testament to the enthusiasm of the topic, Member Loyalty Group and Satmetrix hosted the First Annual Net Promoter® Conference exclusively for the credit union industry this spring. Seventy-five credit union attendees from across the country congregated in Las Vegas to learn more about Net Promoter® and share their own experience in using the tool to measure and improve their business performance. The CUSO is also hosting a series of regional workshops, the first of which will be held on August 9th in Washington, DC. For more information about upcoming events, credit unions should contact us at info@memberloyaltygroup.com.
Contact
Michelle Bloedorn
Member Loyalty Group
773-252-4901
michelle.bloedorn@memberloyaltygroup.com