Why do credit unions consistently score higher than banks on customer satisfaction surveys, yet, at the same time have a fairly minimal share of the consumer finance marketplace? Could it be that satisfaction is a good, but ultimately insufficient measurement of loyalty and propensenity to grow?
We were sufficiently curious about this dynamic that we decided to do what all research institutes do when posed with a paradox…we did some research. We will be releasing a report later this year or early next year putting credit unions under the Net Promoter lens of analysis.
Net Promoter claims to be a simple and effective approach for rating customer loyalty by asking the “ultimate question”: would you recommend us to a friend or colleague. Our preliminary research results indicate what other studies have confirmed, the more folks who are willing to recomend your credit union to family or friend, the more likely the credit union is to have better than average growth (loan, membership, membership, etc.) rates.
Just wanted to let you all know that I’ve been asked to present the results at the inaugural Net Promoter conference. So if you have the itch to travel to New York City in January and learn about our study and Net Promoter, check out the the conference details here. It looks to be a pretty slick program…hope to see you there!
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Hi George—
Couldn’t agree with you more about satisfaction being an insufficient measure of loyalty.
But I have SERIOUS concerns about the usefulness of NPS (see: http://marketingroi.wordpress.com/2007/01/11/stop-measuring-your-net-promoter-score/).
—Ron
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Great post Ron…that’s why we are looking at NPS as a potential in credit unions. Hopefully this study (which will be available soon) will help illuminate some of the questions you (and I) have about NPS.
-George
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Hi George,
I am looking into NPS methodology for a Siemens company here in the US. So far (a long way down the road), I have yet to find industry data on PROFIT GROWTH versus NPS score. Plenty on REVENUE GROWTH versus NPS score…but not profit. Cash is king. Any advice or references that you can throw my way? BTW, I did attend the NPS conf in NY. Great stuff! Thanks for your time. Anthony Renda Siemens Building Technologies 847-941-5413
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