Driving Member Loyalty: 3 Techniques to Improve Credit Union Member Retention
Acquiring new members is costly, making retention essential for credit unions to maximize the ROI of their marketing efforts.
While competitive products and services are important, true member loyalty is built on trust and emotional connection. Credit unions that demonstrate a genuine commitment to their members’ financial well-being can drive deeper engagement and long-term retention.
The importance of member retention is clear. According to Bain & Company, increasing your member retention by 5% can lead to a 25% increase in profit. Due to the trust existing members already feel with your institution, they’re more likely to use more products and services than a prospective member.
Moreover, the cost of acquiring a prospective member can be five times the cost of retaining an existing member. While attracting prospective members must be a priority to sustain credit unions over the long term, activities that increase member retention have a higher ROI.
Let’s explore 3 tactics to improve member retention:
1. Communicate on multiple channels
Building trust through communication requires your credit union to be where members are. Some members prefer to speak in-person or over the phone, while others will prefer getting their information on the web, and some will prefer a mobile app. An omni-channel approach ensures that your credit union is always convenient to reach, preventing members from needing to explore their options.
When communication is easily available where members feel most comfortable, it builds a sense of genuine connection between your credit union and its members.
2. Use personalization to drive emotional connection
Every member has a unique financial situation, and they want their credit union to recognize that. Canned content or product offerings that aren’t appropriate for their situation won’t add to trust the way personalization can.
Personalization leads members to resources, products, and services that fit their unique needs, without pushing non-applicable content. When users see well-executed personalized content, they feel understood by their credit union, which can drive loyalty. And, they’re more likely to engage with the products and services shown, increasing the up-sell potential.
Keeping track of major milestones can also personalize the member journey. Credit unions can pay close attention to age or major updates to accounts to understand where members are in life. Noting major milestones, like retiring, welcoming a new child, or getting married, can help members feel taken care of while providing specific up-sell opportunities for your credit union.
3. Offer valuable products and services
While connection-building is paramount for driving loyalty, it must be balanced with offering the best products and services possible and staying up-to-date with competitors. Paired with personalization, the resources you offer can strengthen your connection with members.
By offering relevant products and services and presenting them to members at the right time, members can view your credit union as a one-stop shop for all their financial needs.
How Ovation drives member retention
Ovation is a comprehensive financial wellness platform that credit unions can white-label and offer to their members, helping them make informed financial decisions, plan for the future, and protect their families. By integrating Ovation, credit unions can seamlessly implement personalized engagement strategies that drive member loyalty and long-term retention.
Personalized Financial Guidance
Ovation’s solution provides customized financial insights, tailored to each member’s unique needs and financial journey. The platform provides actionable steps to help users improve their financial health, offering contextual solutions based on key life milestones and personal circumstances.
Proactive Engagement and Support
Ovation keeps members engaged through:
Timely alerts and reminders to encourage healthy financial habits
Educational emails and resources to empower financial literacy
Integrated financial coaching for ongoing support and guidance
By fostering continuous, value-driven interactions, Ovation helps credit unions strengthen relationships, enhance financial well-being, and increase long-term member loyalty—all within an intuitive, easy-to-use app.
See the impact Ovation can have on your credit union’s member retention - schedule a demo today.