Lead Scoring – Getting to know your members

Many Credit Unions measure the success of a marketing campaign solely with “home run” metrics. For example, a car loan promotion is measured in number car loans booked, and a credit-card campaign in the number of cards delivered. While there is no question that won/loss metrics are important, there is a middle ground that can give you richer customer information as you work to build member relationships rather than just achieve sales. At CU 2.0, we train our clients to use this technique, called lead scoring, as part of their digital transformation.

What is Lead Scoring?

In a typical Marketing/Sales environment, lead scoring is a system for ranking prospects against a scale that represents the perceived value each lead represents to the organization. The resulting score determines which leads the Marketing and Sales departments will engage, in order of priority. For example, a lead with a high score that indicates the lead is ready to make a large purchase soon might be handed off to a regional salesperson, while a lead with a low score is put in a Marketing “nurturing” campaign.

In a Credit Union environment, we see lead scoring as a way to track and enhance the relationship between the Credit Union and the member. Most Credit Union missions include improving the financial well-being of their members in addition to “making sales.” Credit Unions can use lead scoring to track a sales cycle and also to track a member’s financial journey and the strength of the relationship with the credit union.

By using all data from a campaign, and analyzing actions taken by members over time, we can develop a comprehensive ability to further serve the membership of our Credit Unions. By tracking a member’s actions (and lack of action) and assigning a “score,” we can offer more relevant information to help members take advantage of the knowledge and expertise at your credit union.

How Does Lead Scoring Work?

We’ve found that specific scoring methods are unique to each Credit Union, but the general idea is the same. As a member participates in email campaigns they accumulate “points.” In a typical sales environment, the points tell where the “prospect” is in your sales process–your lead funnel.

A Credit Union might modify their scoring system to account for financial lifecycle (first car, first house, etc.), financial health, the closeness of the relationship in terms of the number of products owned (or years of membership), or any other measures that help the credit union assess the member relationship. Each action a member takes helps you understand what specific information you can offer them. Sure, having them close on a car loan is great, but what if they simply aren’t ready? If they’ve shown some level of interest, it’s better to put them in a follow-on campaign rather than starting at square one.

Here is a simplified example of the car loan lead scoring:

lead scoring for credit unions

Just by receiving the email (it didn’t bounce!), the member starts at a lead score of 25. In this example, the maximum score is 50, so we could have behavioral scores and associated next-step actions that look like this:

credit union lead scoring

By providing intermediate actions and involving members in blogs, surveys, and other activities, we provide better service and fulfill our mission of providing financial health information to our members. We’re also going to monitor the follow-on campaigns and update their scores based on continued interactions. You can see that we quickly have a web of online interactions, and the lead score is our key indicator for assessing the overall relationship.

Monitoring campaigns and customer interactions at this level of detail can be more work but is definitely worth the effort in the digital era. Think of this process as a way to improve customer engagement online, in the same way, that you might add a branch to be closer to your customers in the real world. The cost is less than branch operations and allows the member to engage with you at their convenient time – even when branches are not open. Digital engagement requires the same commitment to managing the data as Credit Unions have shown in managing branches. The new digital world that our members have become accustomed to leaves little choice!

Being Relevant to our Members

credit union data

In my last blog, I talked about cleaning up data. Ugh. It is hard work, and I was primarily focusing on core system data. Today I want to suggest thinking about new ways Credit Unions can use existing data.

Most Credit Unions have a heartfelt mission of supporting member’s financial well-being. Yet in some ways – we simply do not engage members enough. What! Hear me out – I’ve got an idea…

Credit Unions can use their data in creative ways to be more relevant to our member’s lives. Let’s take the example of a car loan. We spend a lot of effort and money on “selling” the loan. We offer great rates, we make the buying process convenient, and we spend hundreds of thousands of dollars on systems that will make the loan application process easy with features like automatically creating their membership or integrating with online banking. OK, we got them, they purchased the car and we closed the loan. We did it!

That member now has a 60-month loan and, if they pay on time, we’ll send them their pink slip in 5 years. For many Credit Unions, this scenario is the extent of the relationship between the credit union and the member’s car loan.

It’s all about the data.

What if we used the data we have about car loans to make relevant offers at relevant intervals for something that a member wants? (I know, you may be saying you already make offers at regular intervals, but staying relevant means offering something the member wants.) In the case of a car loan, how about offering a credit card at 18 months (when cars typically need new tires) and double or triple the points off on tires? For an even sweeter deal for the member, work with a box store or a local tire shop to provide even deeper discounts.

The Credit Union gains a more engaged member and credit card revenue. The member gains a deal on a credit card and a discount on something they know they need to purchase soon anyway. The local tire shop gains more awareness and local business.

WIN-WIN-WIN

Now, if you are an even more entrepreneurial community Credit Union, you can offer business customers faceless data. In the auto loan example, if the tire store could see how many tires your members purchased over the last year, they could use that data to improve their marketing efforts and the timing of their advertising and discount offers. They would not be able to see individual transactions, only the aggregate information on purchases.

Now you have an engaged business member that is only able to get that information from your Credit Union.

WIN-WIN-WIN-WIN

The digital journey requires us to find creative and innovative ways to use data to help our members while becoming more engaged in their lives, not just their financial lives. Becoming more innovative with information is a transition that Credit Unions must embark on to continue to be relevant!

Read more about Credit Union Data and Data Analytics:

Getting Your Data In Order – A Recipe for Digital Success

Credit Union Data Analytics: Put the Community in your Fees!

Getting Your Data In Order – A Recipe for Credit Union Digital Transformation

credit union digitial transformationData is fundamental to your credit union digital transformation. Customers must be able to efficiently and effectively manage transactions online. Credit Unions must be able to infer customer needs from those transactions and reach out to customers where they “live” online, whether through email, social media, or text. This blog post presents a simple recipe for getting your data in order as a foundation for digital success.

Step 1 – Unload the data you don’t need. 

Credit Unions tend to hold onto data forever, or at least long enough that it can become a problem. It is common for core systems to have database tables with hundreds of millions of transactional entries and years more data than needed for most operational needs.

Why? Fear of removing data? The effort to replace the data if you get it wrong?

Who tested that purge script anyway?

Shhhh. Is, “Don’t ask, don’t tell,” your data management policy?

OK, we all know that removing data isn’t on the list of critically important tasks, well, until it is. Removing data can make the overall management of your information system easier! Backups are smaller, and systems may run faster due to the smaller size of the database. It’s just less to manage.

The good news is that removing data, although challenging can be automated.


Step 2 – Clean the data you keep – for credit union digital transformation

Managing data in bulk is usually handled by IT teams. Managing data quality so your digital journey can be smoother is a front-line staff opportunity. The dirtier our data is the more each activity we want to embark upon causes exceptions. Having clean data reduces effort and increases performance by eliminating exception conditions.

How does data get dirty?

For example, complex core interfaces allow data entry errors to go unchecked and bulk imported data from a merger. I am sure you have other examples of where the data can and does go astray. Some kinds of data can be validated with scripts and tools, however, technology can’t fix all data problems.


Step 3 – Focus on data that supports digital engagement.

Ensuring the quality of member data like current email address and mobile telephone numbers is critically important for successful digital engagement with our members. It is important that names are correctly spelled, and that staff know how to pronounce names when they speak with a customer in person or on the phone.

Mapping member data help the selection criteria for digital campaigns, if your digital persona is a working woman who is the “CFO” of the household, you quickly realize that knowing whether your member is male or female is fundamental.

Do you have a report showing what percentage of your membership has an email in your system, a mobile phone number? This number is the upper limit of members your campaigns are able to address digitally.


Step 4 – For better member data, engage your members.

It takes time and effort to correct member data, and many Credit Unions are unwilling to ask members without some other offer or campaign. One option is to engage directly with your members to make sure their information is up to date. Train member service staff to pay attention to member data at every customer interaction. If key member information is absent or hasn’t been updated recently, have them ask members for updates.

The better the quality of your data, the easier your path will be to creating and managing the digital transformation.

 

Want to read more on digital transformation?

On the Digital Transformation Journey with Partners FCU’s CEO

Digital Transformation and the Old Fashioned Con

Increasing Customer Connections Through Digital Transformation

Credit Unions pride themselves on customer service and being “customer intimate.” They are pioneers of brickand-mortar, customer-centric innovations such as branch greeter stations and branches that look more like an Apple store than a traditional bank. Providing great customer services and “knowing” our members is a large part of what the Credit Union movement is about.

credit union digital transformation

When it comes to the digital world, however, many Credit Unions remain uncertain of the best ways to use digital technology and information to enhance customer relationships. At the same time as customers increasingly prefer online transactions, Credit Unions have been forced to give up some control over the online transactional experience. Most Credit Unions simply don’t have the staffing or dollars to customize online and mobile banking systems, and therefore must accept a mostly off-the-shelf solution that is, at best, parity with the rest of the market.

Leveraging digital technology to improve customer connections requires thinking beyond transactions as customer touchpoints. It involves using data to get to know your customers on a deeper level, to learn when and where to communicate with them, and to monitor and measure the effectiveness of your communication campaigns.

Remaining “customer intimate” in the digital world requires staying relevant in the lives of your membership. That means many more touch points and communication more frequently than in the past. It also means moving away from drive-by window advertising and postcards where you can’t really be certain of the effectiveness toward the digital analogs—web site, email, social media, blogs, and videos—where you can measure response and monitor interest over time. In the digital world, you have more opportunities to show your expertise in personal or business financial management to help members make solid financial decisions. Your digital assets are available 24 hours a day all year long, unmatchable with any other channel.

CU 2.0 has developed a set of modules and processes to help Credit Unions leverage digital technologies in order to provide exceptional member service. Effective digital communication can be more complex than traditional marketing campaigns. Your strategy needs to consider the right mix of social media campaigns, blogging, videos, and ads. All of your campaigns must be linked to landing pages on your web site and set up with tracking analytics across all steps. Tracking the member journey allows the Credit Union to be on the same path, understanding what matters most for individual members, and providing information that is both timely and meaningful.

In this way, the journey to digital transformation is still member-centric. They key is to shift your focus to integrating customer data from multiple sources and being accessible to members via digital channels. Once you establish an enhanced digital understanding of members, you can make those insights available to staff, other digital systems, and even artificial intelligence and machine learning tools to enhance the member experience.

Digital transformation requires new tools and thinking, leveraging technology and automation to craft the personalized experience that our members now expect.

Want to know more about digital transformation? You may be interested in:

On the Digital Transformation Journey with Partners FCU’s CEO

MnCUN Interviews: CU 2.0’s Kirk Drake Shares How to Future Proof Your Credit Union

Consumers Say Boo To Your Digital Banking Products – Now What Do You Do?