Selling to the E-Member

Darla Dernovsek
January 26, 2005

The e-member offers an enticing target for cross sales. E-members have already demonstrated a preference for self-service online interaction, which makes it cost-effective to serve them. They also tend to be affluent, which enhances their attraction as a target market.

But selling to the e-member takes more than an occasional e-mail message or a new banner ad on the home page every month. Selling to the e-member requires learning how to effectively offer information, assistance, and reassurance on security and privacy issues. It also requires offering electronic products that strengthen the member’s ongoing ties to the credit union.

A study by Ipsos-Insight, Washington, D.C., shows that customers want financial institutions to improve their online banking experience in five ways:

1. “Make me assured my information won’t be sold to other companies,” cited by 74%
2. “Make me assured hackers won’t steal my information,” 73%
3. “Make it easier to contact a real person,” 62%
4. “Make it easier to navigate,” 44%
5. “If I had a faster Internet connection,” 42%

It’s worth noting that credit unions can significantly impact four of those five desires simply by aligning their website with their communications, member needs, and member services.

When cross-selling to the e-member, credit unions can make use of low-cost electronic communications, including e-mail messages, e-alerts, and online advertising. Communication about privacy and security measures is essential, since multiple studies show that concerns about these issues make consumers less receptive to online services.

Credit unions can also enhance cross-selling by offering links to information and support. Access to live support can be provided by telephone, e-mail, or Web chat. The call center, which may be called a contact center to reflect its expanded role in supporting electronic services, can serve a vital function in meeting the needs of e-members. Live interactions with the contact center can provide additional opportunities to cross-sell to e-members.

Promoting advanced electronic products is another way to expand the member relationship. Services explored by credit unions interested in pursuing a “stickier” relationship include free bill payment, e-statements, and account-to-account transfers.

Selling to the e-member requires a combination of e-messages, reassurance about privacy and security, quick access to employee assistance, and electronic products that entice members to bring more of their business to the credit union. Together, these measures can create an Internet delivery channel that provides an ongoing opportunity to interact with the e-member to create a more satisfying relationship.

This is the executive summary from Darla Dernovsek’s white paper entitled “Selling to the E-Member.” Read the complete paper at http://www.cunaopsscouncil.org/research.html.