Payment Protection: Member Value, Marketing Combine for Win-Win by Rich Trace, Director of Product Management, Credit Insurance Pam Schnagl, Market Research Analyst, Voice of Customer
Executive Summary CUNA Mutual Group’s Payment Protection Research examines the product value and its delivery. The research shows high value with benefits to credit unions and their members. Compared to 1998 research conducted by CUNA Mutual Group, the importance of Payment Protection in generating fee income has increased. Credit union research indicates cross-selling efforts can be improved. Members’ needs vary, and lending staff may be hesitant to promote given their level of understanding of these needs. Training reinforces product knowledge, and can be used
Compared to 1998 research conducted by CUNA Mutual Group, the importance of Payment Protection in generating fee income has increased.
to build confidence in addressing the member need. Credit union members are looking for this kind of information and advice from their credit union. A sales approach is not always seen as a member service by credit unions. However, in providing information about products
and services that meet needs, this is a service. Credit unions are seen as advocates for their members, and because of this relationship, members are even more likely to want information that will benefit them.
The 2011 research shows: • Ninety-two percent of credit unions surveyed say a cross-sell culture is very important to their success. • A high percentage of credit unions say credit life is a product members need (82 percent) with a similar number (83 percent) Option for call out. Dolobor in tionull saying it is a good value for the amcommy incil incilla orpero money. Fornum credit disability, these et, percentages are also high (82 and con henim lut quamcon sequisit wis 78 percent, respectively). mod, si velessenim in hendrer iliquatet • Only 33 percent of credit unions incilla sumare si dipisi Xercillam zzriusc say they satisfied with their cross-sell efforts. Credit unions iduisl mod. Ureratis nis nim diamconse who are satisfied with their efforts feu feuissequam ver. training, arefeu more likely to utilize tracking and quoting the loan payment with Payment Protection. However, the satisfaction The research shows credit unions have a strong commitment to developing a cross-sell environment. They recognize the need to take full advantage of all
differences are much larger for credit unions that are using incentives, setting sales goals and
opportunities related to cross-selling financial products and services. And in order
including cross-selling results in
to be effective, a culture built on providing products that benefit members and the
credit union over the long term requires support. Because these products meet a member need, credit unions will be able to serve as an advocate in delivering the product, reinforcing a market strength.
• In that 59 percent of credit union members look to their credit union for some type of help or advice
As research shows, emotional connection alone will not create success. Companies
regarding their financial situation,
need to have the delivery, sales and service in place to be effective. Therefore,
members are interested in
streamlining this delivery and eliminating the barriers prove to be important steps
information on financial products
in facilitating that process.
and services. • Once sold, 83 percent of credit unions say members will repurchase. Given this percentage, a cross-sell investment is well worth it because it provides the basis for long-term results.
CUNA Mutual Group • Payment Lending Strategies Protection:&Member Trends White Value,Paper Marketing • December Combine 2011 for Win-Win • December 2011