BROOKFIELD, Wis.—The biggest risk to credit unions when it comes to communicating with members? The delete button.
In the wake of a tsunami of email advertisements—similar to the wave of direct mail years ago—that have members junking increasing numbers of messages, it has put a premium on ensuring the right channels are being used in the right way to reach members.
As a result, Fiserv notes that with technology playing a bigger role in the way members interact with their CU, electronic communications msut be eye-catching, impactful and timely. It’s also becoming increasingly important to use analytics and predictive modeling when targeting e-messages, the company said.
“Technology is changing how members interact with their bills and statements,” said Craig Meurer, Fiserv director of product management, output solutions division, adding that email communications—comingled with phishing attempts—have flooded members’ inboxes.
Adapt To Changing Demand
“As advances in technology dramatically alter consumer behavior, credit unions have to adapt to meet the changing demand for the delivery and use of transactional documents—think monthly bills and statements, not standalone marketing material,” he said.
The kinds of e-communications consumers are gravitating to most, in terms of transactional bills and statements, are largely electronic-only copies of their mobile, cable/Internet and credit card bills, said Meurer.
He said that transactional documents are better read than marketing material, since they are “need to know information.”
“Again, research shows us that transactional documents are the most read electronic communication from a financial institution,” said Meurer. “As a result, they are the least deleted. By targeting marketing messages within a transactional document—a bill or statement—members are less likely to delete it.”
Meurer emphasized that credit unions should not restrict the approach to just emailed statements. When it comes to non-sufficient funds or fraud alerts, texts or in-app notifications have higher read and response rates.
Right Offer, Right Person
Electronic communications, continued Meurer, work best when it’s the right offer to the right person using the right channel.
“That sounds simple enough, but it is best accomplished through the diligent use of analytics and predictive modeling,” he said. “One size does not fit all when it comes to messaging.”
A common mistake with electronic communications is assuming that every member wants them, said Meurer.
“The truth is financial institutions are adding more channels and not necessarily deleting others. Members expect the information they want, when they want it, how they want it. And it could be the same member accessing communications through several different channels in any one month or year,” he said.
Meurer said that credit unions must first understand member channel preferences for all communications, including transactional and marketing.
Craig Meurer, Fiserv
“This would require a preference center to capture member communications,” he said. “Generic content should be avoided, especially member messaging. In a recent Fiserv InfoTrends survey, research reveals that consumers want their providers to improve communications—whether print or digital—by making them easier to understand, making them relevant and personal, making them colorful, and utilizing their preferred channel of delivery.”
Not Just For Millennials
Credit unions should also not think that electronic communications are primarily used by Millennials.
“The adoption of digital technology has been rapid and widespread across all generations, which may seem counterintuitive,” said Meurer. “The 2015 Consumer Experience Survey from Fiserv found more than one-third of all members (37%) opt for electronic-only bills and statements, and that figure is slightly below the percentage that receives these documents in both electronic and print form (43%). Those who only receive them in the mail are now in the minority for most age groups, particularly Millennials, where 12% receive paper only versus Boomer parents at 37%. This data is almost unchanged from the previous year, suggesting a flattening of paper suppression rates, but—more importantly—an increase in the number of members using both digital and paper formats.”
And don’t think print will be going away, at least not any time soon, said Meurer.
“While the large majority of consumers have access to electronic transactional communications, they continue to retain printed communications,” he explained. “In the Consumer Experience Survey when we asked why consumers continued to receive paper versions, top responses included:
- I want a hard copy for my records (71%)
- Worried about online security (34%)
- Paper is easier to read (26%)
- Keep paper for tax purposes (25%)
- Have not set up online banking (18%)