Cost is only one factor.
Credit unions are certainly evolving in their approach to meeting the needs of members. CUs’ current network of delivery channels includes home banking, branches, ATMs, mobile, call center, mail and social media. How’s a CU to decide what path to follow through all of this?
During a recent CUES Webinar, “The Present and Future of Delivery Channels: What Credit Unions Need to Know,” Bill Goedken, CPA, CMA, CGMA, talked about how to make good choices about your CU’s delivery channel strategy. (Get the webinar playback.)
Great consideration is given to the comparative costs of each channel, said Goedken, CEO of Idea 5. He cited a 2013 Javelin Strategy and Research that assigned the following cost to each contact with a member over the various delivery channels: In person at physical branch: $4.25 Call center: $1.30 ATM: $1.25 PC/website: $0.19 Mobile: $0.10 Digital banking is becoming dominant, but most consumers still want a physical branch network of some type, Goedken said, emphasizing the importance of touching lives with “more than just money. Think of ways to try and touch their lifestyle.”
A CU’s direction on delivery channels can be focused by answering several critical questions, Goedken asserted:
- Why would anyone want to business with us?
- What type of credit union are we and what type do we want to be?
- How can we balance costs, benefits, speed, security and reliability, and yet still provide premium customer service to our customers?
“Delivery channels will continue to evolve and lean more towards technology,” he added. “Educate your organization. Be prepared to meet the needs of members on multiple channels, but you can’t be all things to all people. Choose three to four channels to be the best at!”
James Lenz is CUES’ professional development manager and the host of the new CUES Podcast.