The Business Case for Member Experience: Why Loyalty Leaders Outperform the Industry

For years, credit unions have prioritized member experience because it was the right thing to do. Today, it is also one of the smartest financial strategies a credit union can pursue. Recent analysis confirms what many leaders have long suspected: when members are loyal, the financial results follow.

By comparing credit unions with the highest and lowest loyalty scores, a clear pattern emerges. Loyalty Leaders consistently outperform their peers across growth, product adoption, and profitability. In today’s challenging economic environment, that advantage is not just helpful, it is amplified.

Growth Fueled by Advocacy

Credit unions at the top of the loyalty curve achieve 113% higher member growth and generate 29% more referrals than low performers. This performance is not driven by higher marketing spend or aggressive acquisition tactics. It is momentum created by trust.

When members advocate for their credit union, acquisition costs decrease, new members arrive with built-in loyalty, and growth becomes more sustainable over time. In a market where acquisition costs continue to rise, Loyalty Leaders are tapping into one of the most efficient growth engines available: their existing membership base.

Product Usage as a Signal of Trust

Loyalty Leaders also see significantly stronger product adoption, including 324% higher loan growth and 43% greater credit card participation. Each new product relationship represents more than a transaction. It is a signal that members trust their credit union with a larger share of their financial lives.

From checking accounts to mortgages, this trust deepens relationships, reduces vulnerability to competitors, and increases long-term member value. Loyalty Leaders are not simply winning more accounts. They are strengthening relationships in ways that create lasting competitive protection.

Financial Outcomes: Loyalty as a Risk Mitigator

The financial impact of loyalty extends directly to the bottom line. Loyalty Leaders report 60% higher net income per member and 73% higher return on assets. These results highlight more than profitability alone. They point to resilience.

In periods of economic uncertainty, price-sensitive members are quick to shop around. Loyal members behave differently. They remain engaged, are less likely to leave, and are more willing to stay the course. This creates a financial buffer during downturns and a stronger platform for growth when conditions improve. Loyalty is not only a growth strategy; it is one of the most effective risk mitigators available to credit unions.

Competing on Experience, Not Just Rates

For decades, credit unions relied heavily on rates and fees as their primary competitive advantage. While still important, these advantages are increasingly easy for competitors to replicate. Trust built through consistent, meaningful experiences is far harder to duplicate.

Rates may attract members initially, but loyalty is what keeps them. In today’s market, experience has become the most defensible differentiator credit unions can offer.

A Board-Level Priority

These findings elevate member experience beyond a service-level conversation. This is no longer about satisfaction scores or complaint reduction. It is about the metrics leadership teams and boards care about most: growth, profitability, and long-term resilience.

Investing in member experience is no longer a nice-to-have initiative. It is a strategic imperative that separates Loyalty Leaders from the rest of the industry.

How MLG Helps

Member Loyalty Group partners exclusively with credit unions to help turn insights like these into action. Through advanced analytics, industry benchmarks, and expert guidance, we help leaders move beyond collecting feedback to implementing strategies that drive measurable financial outcomes.

When loyalty becomes the lens through which decisions are made, the results follow: stronger growth, deeper relationships, and more resilient financial performance.

Download The Link Between Member Experience and Financial Performance infographic to explore the full findings.