CHICAGO, IL (February 22, 2013) – Member Loyalty Group, the exclusive provider of the Satmetrix Net Promoter Score® (NPS) program to the credit union industry, is sharing some of the key highlights uncovered while collecting over one million surveys. Based on an analysis of the CUSO's 2011 relationship survey data, which focuses on the overall member relationship vs. specific transactions, a common theme was found in comments made by "detractors" of lower-performing institutions. Comments expressing frustration over what can be described as "pesky fees", such as fees for inactivity, paper statements, or even picking your own PIN, were three times as common in bottom performers compared with loyalty leaders.
As the chart demonstrates, the actual fee income per member at top NPS performers is virtually identical to that of the loyalty laggards. However, the NPS score is significantly higher in credit unions without negative member coments regarding fees. The 35-54 yr old demographic was particularly frustrated by "pesky fees." Member comments, especially among older members, also showed that they clearly understand the credit union difference and take pride in being a member of an organization that offers high quality service and does not charge as many fees as the big banks.
"The irritation members feel when they discover 'pesky fees' can erode member loyalty and even muddle the credit union difference," said Michelle Bloedorn, CEO of Member Loyalty Group. "Members understand that fees have to be charged when they overdraft their checking account, but fees that are not based on member action or seem to be punitive in nature are extremely frustrating."
While other factors are likely at play in both the top and bottom performers, the "pesky fees" are one common theme that credit unions should be aware of and may be able to avoid.
About Member Loyalty Group
Member Loyalty Group is a CUSO formed by leading credit unions in 2008 to develop a common member loyalty benchmark for the credit union industry. The CUSO has an exclusive relationship with Satmetrix, the Net Promoter® company, to provide credit unions with the most effective tools for managing a Net Promoter® program to collect and act on member feedback that increases loyalty, growth and retention. Member Loyalty Group serves over 30 credit unions, many of which are over $1 billion in assets, across the country. For more information visit www.memberloyaltygroup.com.