EmpowerFi™

Driving Member Engagement with AI

Credit unions have access to a wealth of data that, when used well, helps them really know and understand their members.

When consumers feel known and understood, they interact differently with an organization – they invest in more services, are more receptive to new products, and are more likely to recommend the brand to others. This culminates in members who are loyal to your credit union.

Credit unions have access to a wealth of data that, when used well, helps them really know and understand their members.

When consumers feel known and understood, they interact differently with an organization – they invest in more services, are more receptive to new products, and are more likely to recommend the brand to others. This culminates in members who are loyal to your credit union.

 

Understand your members

Whether your credit union is large or small, it’s just not realistic to know all your members on a one-to-one basis. Yet, creating clear and distinguished personas that recognize the common traits of your members is a simple way of using membership data to begin seeing patterns. In this way, you can target your marketing to specific demographics within your membership groups in a much more personalized way.

That’s why savvy credit unions use personas in their marketing. These personas categorize members who share similar traits into a single group. It’s best practice to have four to seven personas and it’s likely that these personas will range from young singles to retired couples.

Even though we won’t know each individual member, they will feel like they are understood because they receive marketing and messaging that is most relevant to their life stage, their values and their interests.

By targeting audiences in a way that resonates with them and their values, they are increasingly likely to engage with your financial institution.

 

Connect with your members

When you understand your members’ preferences and are ready to speak their language, then it’s time to reach out to them.

For example, EmpowerFi™ recently worked with a credit union to establish personas to improve the understanding of their member behaviors. In the process, we identified a group within their membership who were single, chose to live in the suburbs, shopped through Amazon, and were in a significantly lower age bracket than their fellow members.

What was interesting is that a whopping 20% of their members fell into this previously unidentified persona category and had not been identified before. With a clearer understanding of the shopping behaviors, values, and interests of those who fit into this new persona, the credit union was able to more effectively market to this group of members.

Without knowing of their existence, the credit union would have continued to send this group of young, single suburbians marketing that wasn’t relevant to them. Historically, they had been receiving marketing with images of retirees, the credit union’s largest persona group. How would this group have responded to continuously receiving irrelevant marketing which didn’t suit their interests and lifestyles? It would quickly become apparent that they didn’t belong, and they might have been more likely to seek out an alternative financial institution that really understood them. The credit union would have lost a huge opportunity with an important group that made up one fifth of their members.

As financial institutions, we have to understand our members. This example demonstrates how important it is to understand your members. In fact, the companies that are executing data-driven marketing are six times more likely to be profitable, year-on-year (Forbes). Research has found that more than half of consumers stated they would switch brands if a company didn’t use targeted, personalized communications (Salesforce), and ICSC (Innovating Commerce Serving Communities) found 56% are more loyal to organizations that “get them.”

The success of data-driven marketing is dependent on the relevance and effectiveness of your credit union’s member personas, and equally, the data’s quality. As stated before, it’s virtually impossible for a credit union to know its individual members personally – there are just too many details. This is where AI helps.

AI identifies subtle patterns. These patterns provide rich insights about our members that we simply are not able to find without machines. You can establish if your persona groups are likely to have pets, donate to charity or are spending money on their hobbies, and this data can help to shape the messaging, features, products, and voice used to connect with these groups of members. This maximizes a credit union’s ability to engage a diverse membership.

 

Reach new members

AI can support your credit union to not only build loyalty with existing members, but also to identify potential prospects to connect with. By gaining an understanding of values and interests, financial behavior, and more, this data can be harnessed to identify the best time to offer a new product, personalize communications, or encourage recommendations.

Credit unions’ appeal over other financial institutions is their ability to establish a community feel and enhance member experience. AI supports this significantly, and as the use of data and personalization becomes common in other industries, consumers will start demanding this personalized level of service from their financial institutions too.

BCG’s 2020 Retail Banking Advisory survey found that 37% of participants wanted Amazon’s service experience brought into their financial institution, and 29% wanted a personal shopper experience.

A common myth is that AI is too complex or costly to use effectively. While some credit unions may think they need to hire an AI expert to execute data-driven marketing, that’s really not the case; the cost of AI has reduced over the years through SaaS platforms and partners.

Credit unions both large and small can get significant support from utilizing AI, and as a result, affordable partners and cost-effective on-demand AI platforms make this technology accessible to all.

 

IntelliFi™ powered by Faraday is a predictive analytics model designed to support your marketing needs to effectively implement AI and data-driven marketing to its maximum potential. Optimize your marketing efforts with your very own on-demand data analyst and start making your data actionable. Find out more about IntelliFi™ and book a free demo here.

Blog Category

Data, Strategy

Service Type

IntelliFi - Marketing Analytics for Credit Unions

IntelliFi™

AI-Driven Data Analytics

Our AI-driven marketing analytics platform combined with strategy-infused marketing campaigns gives you a powerful competitive advantage in your marketplace.

Written by:

Hilary A. Reed- The CEO/ Chief Strategist of EmpowerFi™ Credit Union Marketing

HILARY A. REED

CEO | CHIEF STRATEGIST

Fun Fact

Hilary currently lives in a Philadelphia suburb with her two children who are 13 and 18. They all enjoy traveling the world and most recently traveled to Bermuda, Bahamas, Malibu, San Diego, Key West and Iceland.