Key issues when trying to reach members at receptive times

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The following post is provided by TruStage^™, a MeridianLink^®partner.
By: Amy Robertson, Senior Manager of Digital Experience & Distribution, TruStage

Credit unions sometimes struggle to effectively engage with members due to several key issues. Consumers today need to feel informed, yet there is a prevalent lack of information retention among them, which complicates efforts to maintain engagement. Identifying the right moments of receptivity is crucial but challenging; these moments often coincide with times when members experience pride or significant personal achievements. Missing these critical touchpoints means companies fail to leverage the heightened awareness that drives value.

Without tapping into these optimal moments of receptivity, companies could find it difficult to create meaningful connections and enhance member loyalty. In this blog, we'll touch on these key issues - providing relevant data that explains how consumers are feeling today.

Consumers want to feel informed

When contemplating financial decisions, credit union members are not impulsive. They consider themselves to be conservative decision makers (69%), with nearly half believing they overthink financial decisions. Further, about half say they have a financial plan, do their own research, and feel confident in making financial decisions.¹

Being a partner to them in their financial planning requires understanding what helps them prepare. For example, 3 out of 4 members likely to purchase lending payment protection sought simpler explanations and a person to answer all their questions.¹

Lack of retention of information

Consumer desire for information and their ability to retain it during complex borrowing journeys may be in conflict. In 2022, the average consumer spent 14 hours and 39 minutes researching and buying a car - increasing both the amount of time and the sources of research.²With that amount of incoming data, information - especially ancillary to the primary goal - could be lost.

TruStage research found that 8 in 10 recent borrowers were concerned about making payments on their loans - many concerned with life events like death and illness impacting their ability to pay. Yet only half of auto borrowers recall being offered any payment protection products and only 21% recall being offered the Credit Insurance or Debt Protection products that would protect them against life events.⁵

Finding receptivity through moments of pride

If a member doesn't recall being offered a product it seems unlikely for them to feel well informed about it. Evaluating any experience, business strategy experts, Chip and Dan Heath tell us that people are likely to remember moments that are dominating by elevation, insight, pride, and connection.³

Online loan applications provide a unique opportunity to create moments of pride when we reframe the experience as a series of achievements instead of a singular goal of funding a purchase. Loan approval is a clear moment when a member should feel pride, but even completing a loan app can be a source of pride when you consider how many form fields they fill out!

In a 2022 study of engagement, TruStage found that only 8% of members interacted during the loan application and 44% interacted once they reached the end. Contemplating where members would identify a finish line increased engagement by five times. Further qualitative research found that their sentiment about products shifted from neutral to negative when presented in the application, versus, to more positive when products were presented at the end of the application.⁴

Awareness at moments of receptivity drives value

Engagement with information is only part of the puzzle. When we combine the right moment with the right information, we see results to the bottom line. In 2023 we asked consumers what they expected in their online loan experience. Fifty-six percent were expecting same day loan decisioning, so timeliness of information was critical. While 1 in 3 were expecting to speak with a representative online or on the phone, so we knew we needed to make those conversations easier.⁵

Leveraging our consumer research and partnership with MeridianLink^®Portal, we created an integrated experience that allowed us to position information that members requested most in a channel that they could be receptive to. Credit unions that use technology that integrates into member experiences have seen product awareness increase 13% on average in the number of members electing credit insurance and debt protection products.⁶

A more informed member doesn't just feel more positive about an experience; they are also more likely to be open to products being offered to them.

To learn more about reaching members today and improving your credit union's engagement with members, watch MeridianLink's recent webinar,"Leverage Embedded Finance Tactics To Optimize Digital Experiences,"featuring myself, Amy Robertson, Senior Manager of Digital Experience & Distribution, TruStage and Corrin Maier, Vice President of Lending Business Segment, TruStage.

For more information on borrowers' expectations and concerns, read TruStage'sLending Consumer Preferences Report.

¹TruStage, Consumer Financial Motivations Study, conducted by TruStage in partnership with Epsilon, September 2023²Cox Automotive, Cox Automotive's Car Buyer Journey Study Shows Growing Frustration with Car Buying Process, January 2023³Chip & Dan Heath, The Power of Moments, 2017⁴TruStage, Internal Data, 2022⁵TruStage, 2023 Consumer Lending Preferences Research, May 2023⁶TruStage, Lending Media Program May Campaign Results, June 2023

TruStage™ is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. ©TruStage
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