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5 Ways Data Can Improve Your Credit Union's Local Success

June 14, 2018  //  BY Team DataTree

Data is a powerful tool. Credit unions can and need to use data to achieve their goals. When credit unions leverage the wide range of data available to them, it is possible to better understand members, improve overall business function, and achieve better returns on any investment. It takes the right tools and resources, but properly managing data and incorporating it into everyday business can transform the success of any credit union.  While most credit unions have to compete heavily with big banks that seem to have bottomless budgets for marketing, often times, data can reduce costs while improving outcomes. Here's how

:#1: Identify target customers more fully

One of the most important ways that data can help credit unions is in providing information about members. Data can help banks to better target members based on those individuals' banking needs. For example, if your credit union wants to increase the number of car loans it finances, data can help the credit union to identify members most likely to need this type of service. As a result, the credit union can then focus attention on those member clients most likely to invest in this type of loan. Ultimately, this makes the investment in marketing to these individuals more fruitful and beneficial.

#2: Identify risk levels in clients

Another key benefit data offers is insight into risk. Risk is a big component in most credit unions since capital isn't always as readily available as in big banks. However, by gathering and using data, interpreting it fully, it is possible to better identify risk factors for borrowers. This is more than just targeting potential members based on credit scores or even buying or borrowing history. It provides more insight into those buyers who are most likely to be solid borrowers to offer long term results for the credit union.

#3: Tailor services to clients to improve satisfaction

Often times, data is seen as a way to help lenders - by providing information and resources. However, it can extend much further than this. Data can also provide credit unions with information related to meeting their needs. For example, it can help organizations to offer services better tailored to meet the current, members' needs. What types of products and services do your current credit union members need? What types of upgrades, changes to terms, conditions on accounts, or features in loans matter the most to customers? Data answers these questions.

#4: Learn trigger points for customers

Credit unions also need to know what makes a member invest. For example, if you plan to offer mortgage loans as a prime marketing factor today, what is going to make a person pull the trigger, so to speak, and invest? Learn trigger points or areas of interest of members to better allow your business to market to them. For example, you may be able to target mortgage buyers through lower interest rates, better terms, or key incentives. With data, you can understand the answer to the question, "What will make interested investors buy?"

#5: Utilize analytics to improve marketing

Data analytics answer questions.  One of the primary ways that this can work for a credit union is to improve marketing. For example, if a credit union runs a marketing event targeted at those mortgage buyers using digital media, cold calling, or other methods, data can help the credit union to learn which methods created the best return on investment. This means that your credit union can run campaigns - of all types - and then use data to better understand what types of marketing worked the most effectively. You'll learn what your credit union members responded to so you can better prepare the next campaign.

Today's credit union has more competition than ever both in the form of online lenders and traditional financial institutions. Credit unions have an outstanding service to offer, but meeting member needs means better understanding those individuals and their unique goals. Data answers questions that are otherwise hard to define. This ensures that every dollar spent on marketing and building a credit union's base is used properly and comprehensively.

DataTree offers the solutions to address the challenges and opportunities your credit union faces today and tomorrow.  Sign up to learn more and receive a free trial. 

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