An often downplayed or discounted differentiator between credit unions and retail banks is the cooperative structure. It’s true that by placing the phrase “We are a member-owned financial cooperative with a volunteer board of directors” may not be a very compelling marketing statement in a crowded marketplace. But NPS leaders have found that by acting like a cooperative – not just saying you are one – has been a key driver of their loyalty economics.
The best-in-class credit unions run as true cooperatives, where members are co-owners and are responsible for the makeup of boards that see it as their role and responsibility to ensure that member needs are recognized and understood.
In theory this sounds simple. In practice this is where best-in-class moved from just doing the survey and calculating the score, to creating a discipline in the organization.
While these credit unions differ in a number of ways as a business, each best-in-class credit union used an operational approach using a tool called the Net Promoter Operating Model.
There are six elements of the model:
- The first element at the core of any program is emphasis on member-centric culture, or DNA within the organization.
- Next create a well-thought-out-plan – an enterprise road map for your program to continuously evolve.
- Building trustworthy data is the keystone of NPS and the basis on which strategic business dec isions can be made.
- To improve your score, you must identify root causes of promotion and detraction, as well as drivers of loyalty.
- Taking action and holding your organization accountable shows members that their feedback matters, and will enable operational and structural improvements.
- These elements can drive innovation and transformation across products, employee engagement, business processes, and the member experience to name a few.
NPS becomes the organization’s microscope so they better focus on what really matters to members.
“Leaders would never tolerate a large gap between forecast and actual financial performance, but seem to look the other way when service gaps exist,” said Diana Dykstra, CEO of SF Fire CU. “Exceptional member experience won’t work unless it is a priority of management and touches work processes, systems and structure.”
That’s how you become best-in-class. Class dismissed.
