Create a Member Experience

Credit Union Magazine
October 9, 2007 | COMMENTS

A study by Right Now Technologies in Bozeman, Montana, reveals that only 22% of customers believe companies currently provide an excellent customer experience.

According to the CUNA Technology Council white paper “Successful CRM Implementations: A Journey of Culture, Technology, and People,” the following are common reasons why customer relationship management (CRM) efforts fail:

Culture clash. CRM requires a dramatic change from a traditional reactive culture to one that anticipates members' needs and helps members solve problems. Some employees resist this change.

Viewing CRM as a technology solution. Technology is a vital component of CRM, but it's only a tool. Front-line staff must be trained in both cultural and technological changes.

Management and organizational needs come first. Consider members and front-line staff first. If CRM tools are difficult to use, CRM efforts will be doomed to failure. Likewise if members don't benefit from CRM.

Vendors oversold CRM solutions. Buyer's remorse often looms large. Make sure vendors can deliver what they promise.

Companies that excel in this regard, however, can build a more sustainable edge based on an emotional bond, according to “Customer Experience Management: The Value of Moments of Truth.”

Consider these findings:

• In earning their loyalty , customers rate their quality of interactions with an organization as equally important to the quality of the goods or services purchased.
• Interactive voice response , a common tool to cut transaction costs, hasn't improved the customer experience.
• Investing in employee training and Internet-based sales and support improves the customer experiences more than a third of the time.
• Sales/service/support activities are the most likely to generate a “memorable” experience, either positive or negative, because of the strong emotions that often result in problem situations.
• Memorable experiences build loyalty.

Experiences are the “emotional glue” that bind consumers to your organization, the report states. These “big five” attributes set top-performing organizations apart from others:

1. Well-trained and helpful employees. Training gives the means to having great employees, but being helpful largely depends on peoples' attitude.

2. Excellent service. Great service can offset product limitations. This requires personable, attentive people who interact with consumers on a more personal level.

3. High-quality products and services. Helpful employees will take you only so far. Give consumers what they want.

4. Friendly, caring employees. Consumers like pleasant interactions with employees who genuinely care about doing their jobs well.

5. Rewards for loyalty. Recognize active members personally.

This story first appeared at www.creditunionmagazine.com and is reprinted with permission.