Is your credit union relevant? Is your credit union providing value to its members? Dr. Laura Brooks, PhD, of Satmetrix Systems evaluates what drives satisfaction of the consumer experience in, A Fresh Approach to Measuring Member Loyalty.
Dr. Brooks employs a new metric called the Net Promoter Score® (NPS), a method that attempts to predict organizational growth and customer retention. Net Promoter is a simple yet elegant tool to measure consumer loyalty that is gaining recognition as a way to manage customer experience and profit growth. This report provides your credit union with a primer on the NPS metric and will catalog the preliminary statistics we found while measuring the NPS of seventeen credit unions and nearly 40,000 members. The study’s key findings include:
- The survey response rate reached almost 13%, compared with an average of 3% to 5% for most consumer research studies.
- Credit unions scored an overall NPS of 54.3% (67.7% promoters and 13.4% detractors).
- The highest credit union NPS was 79.1%, and the lowest was 19.6%.
- Credit unions’ overall NPS score exceeded that of other retail banking outlets.
- Some characteristics of promoters are:
- Likely to see the credit union as their primary financial services provider.
- Have a good overall experience with their credit union and indicate that it exceeds their expectations in multiple areas.
- Have been using their credit union for a significant amount of time.
- The drivers of NPS in credit unions are fairly intuitive: overall product/service quality, overall value, and customer service/support experience.
- High NPS correlated with high credit union asset growth, high membership growth, and high loan growth
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