The Experience Opportunity

November 1, 2018 Todd Clark

I’ve just returned from this year’s Money 20/20 conference, which took place last week in Las Vegas.  As you can imagine, there was no shortage of discussion around digital transformation, payments, data, security and more.  But what stood out to me was the broad focus on experience.

In the diverse world of payments innovators attending the conference – ranging from big banks and established tech companies to FinTech startups – one thing that almost everyone agreed on was the revolution taking place surrounding experience.  Everywhere you look expectations are soaring, technology is rapidly advancing and financial institutions are quite literally racing to capture new markets and win the loyalty of their existing clients.

This quote, to me, says it all:

The businesses winning today are winning because they serve consumers on their terms, when and where they want,” said Money2020 President Tracey Davies.

Now credit unions have the advantage of longstanding relationships with their members; but as those members begin to engage more with digital and mobile channels, understanding their current and future needs becomes more challenging.  Member data then becomes critical to understanding your members and delivering against their experience expectations. 

Here are a few of my key observations from Money 20/20:

  • Member experience is number one. Referencing data from the 2018 Edelman Trust Barometer, Deidre Campbell, Global Chair, Financial Services Sector at Edelman noted that a great user experience is now the top consumer priority when choosing a financial institution, with 83 percent calling it an important consideration. This is happening in an environment where the expectations – and the stakes – couldn’t be higher.

  • Fintech may not be as big a threat as Techfin. Big technology players are leading the charge in customer experience; it’s no wonder they’re seen as leading competitors in the payments space. At Money 20/20, 58 percent of attendees polled said ”Tech Fin” (Amazon, Google, Apple) is the biggest threat to the financial services industry.

  • Ecosystem and platform delivery are key drivers to delivering on expectations. THINK 18 alum James Wester spoke about how digital ecosystems have revolutionized retail, delivering a new wave of growth for small and large merchants, and are now doing the same for all forms of payment. Across almost every industry, platform thinking and open innovation are the speedy two-step that makes constant, widespread, iterative change possible. 

As I’ve said before, digital transformation is no longer an “if” question it’s now “when.” Progress and innovation are being built around a digitized industry. The question now is how to harness innovation, optimize performance, compete and grow.

Member Journey Mapping to meet Experience Expectations

So where do you begin?  Looking first at the member financial journey, and understanding how members interact with their credit unions can help you optimize experiences to increase member satisfaction, retention and growth.  Today, we’re offering a free white paper and in-depth report that provides analysis of 2,000 individual journeys experienced by credit union members nationwide.

Mapping the Member Journey” was a study prepared by CO-OP in partnership with Mastercard Advisors that measures the performance of credit unions across 13 different member engagements, such as applying for membership, making a service complaint, initiating a balance inquiry or starting an investment account. It then studied how both positive and negative emotions present during those engagements influenced future behavior.

For instance, nearly 60 percent of members who experienced high levels of stress or anxiety from a negative member journey said they would decrease their business with the credit union. When they experienced an exceptionally positive experience, on the other hand, nearly 65 percent of members said they felt increased trust with their credit union.

Understanding how your members engage across every touchpoint is critical to discovering new opportunities and building long-term trust. This is the intersection of technology and integration, which can have a dramatic impact on the overall member experience.  I encourage you to read the report and leverage some of its insights to begin your own journey mapping.

Uncovering Opportunities at THINK 19

Earlier this month we announced marketing guru Seth Godin and chef and humanitarian José Andrés as speakers at our THINK 19 conference; both offer extraordinary perspectives on the power of human creativity in the modern world. We’ll be announcing some new speakers to the conference line up very soon. If you’re ready to take on the challenges and opportunities of a competitive payments and financial services market, I hope you will join us for the credit union industry’s must-attend conference, May 6-9 in Miami. Register by November 26 to take advantage of the $1,299 Fall pricing.

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