member retention

[rspence at TSO.UC.EDU]

I work with a credit union committed to serving low-income people. We are
currently trying to increase member retention. I am looking for successful
ways to reduce the number of closed accounts. I would appreciate any
suggestions. Also, I am trying to develope a member survey to address this
issue. If you have working model of a survey, please share.

Rahim Spence
Cooperative Fiscal Services
1731 Vine Street
Cincinnati, Ohio 45210
(513)241-7266 (phone)
(513)241-7436 (fax)
rspence@tso.uc.edu (e-mail)


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[jsegelke at cce.cornell.e]

Segelken <jsegelke@cce.cornell.edu>
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On Tue, 28 Feb 1995, rahim spence wrote:

> I work with a credit union committed to serving low-income people. We are
> currently trying to increase member retention. I am looking for successful
> ways to reduce the number of closed accounts. I would appreciate any
> suggestions.

Rahim:

We have developed a credit education program here designed
specifically for low income, limited literacy consumers called BUC$. It's
designed to be peer-volunteer delivered, although it is often used in
direct teaching situations. The goal of the program -- Building an
Understanding of Credit Services -- is to help people understand a variety
of financial management concepts, including the importance of having and
maintaining checking and savings accounts. I have your address and will
send you a brochure that briefly details the program. It may have
information you can use to help your clients understand the importance of
opening and maintaining checking and savings accounts. I'll send you
details, as well as impact information.

Jane


Jane Baker Segelken
Consumer Economics & Housing
Cornell University
Voice phone: 607-255-2058 Fax: 607-255-0799
E-Mail: jsegelke@cce.cornell.edu





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[wlm4 at cornell.edu (Will]

I agree with Jane Baker Segelken's comment: member education is the key to
member retention.

Our Credit Union has over seven years switched almost all of our marketing
budget out of mass media and into member education. Our purpose is to
educate members our philosophy of locally controled community development.
Ultimately, we are using our current members to make referrals to our future
members.

In practice, we
- publish a monthly newsletter, Alternatives Currents, which is
sent to EVERY member with their statement. We figure that those members who
don't have services that require a monthly statement are the members we want
to communicate with the most. About 40% of the newsletter is devoted to
philosophy. (We offer a free subscription to this newsletter to anyone who
requests. You may send a subscription request to Leni Hochman, Editor at
tjj2@cornell.edu)
- Promote our members. Nothing builds loyalty like our recognizing
and appreciating our members. For example, We publish a "Credit Union
Business Yellow Pages" biannually. This booklet lists every Credit Union
member business and encourages our members to frequent their shops.
- Go where your members are. We don't use mass media, but we will
advertise in EVERY member newsletter, playbill, mailing, yearbook, etc.
- Survey your members. When a member opens or closes an account, we
want to know why. The results: about 90% of our new members come to us due
to a personal recommendation. About 70% of those who leave do so because
they are moving out of the area.
- Finally, resolve problems quickly and in the member's favor.
************************************************** **********
William Myers
Alternatives Federal Credit Union
301 West State Street, Ithaca, NY 14850-5431
Voice (607) 273-3582 ext 817 FAX 277-6391
E-Mail Alternatives-Myers@Cornell.edu
************************************************** **********


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[wlm4 at cornell.edu (Will]

I agree with Jane Baker Segelken's comment: member education is the key to
member retention.

Our Credit Union has over seven years switched almost all of our marketing
budget out of mass media and into member education. Our purpose is to
educate members our philosophy of locally controled community development.
Ultimately, we are using our current members to make referrals to our future
members.

In practice, we
- publish a monthly newsletter, Alternatives Currents, which is
sent to EVERY member with their statement. We figure that those members who
don't have services that require a monthly statement are the members we want
to communicate with the most. About 40% of the newsletter is devoted to
philosophy. (We offer a free subscription to this newsletter to anyone who
requests. You may send a subscription request to Leni Hochman, Editor at
tjj2@cornell.edu)
- Promote our members. Nothing builds loyalty like our recognizing
and appreciating our members. For example, We publish a "Credit Union
Business Yellow Pages" biannually. This booklet lists every Credit Union
member business and encourages our members to frequent their shops.
- Go where your members are. We don't use mass media, but we will
advertise in EVERY member newsletter, playbill, mailing, yearbook, etc.
- Survey your members. When a member opens or closes an account, we
want to know why. The results: about 90% of our new members come to us due
to a personal recommendation. About 70% of those who leave do so because
they are moving out of the area.
- Finally, resolve problems quickly and in the member's favor.
************************************************** **********
Leni Hochman
Alternatives Federal Credit Union
301 West State Street, Ithaca, NY 14850-5431
Voice (607) 273-3582 ext 818 FAX 277-6391
E-Mail tjj2@Cornell.edu
************************************************** **********


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