Is your credit union relevant? Is your credit union providing value to its members? Dr. Laura Brooks, PhD, of Satmetrix Systems evaluates what drives satisfaction of the consumer experience in, A Fresh Approach to Measuring Member Loyalty.
Dr. Brooks employs a new metric called the Net Promoter Score® (NPS), a method that attempts to predict organizational growth and customer retention. Net Promoter is a simple yet elegant tool to measure consumer loyalty that is gaining recognition as a way to manage customer experience and profit growth. This report provides your credit union with a primer on the NPS metric and will catalog the preliminary statistics we found while measuring the NPS of seventeen credit unions and nearly 40,000 members. The study’s key findings include:
- The survey response rate reached almost 13%, compared with an average of 3% to 5% for most consumer research studies.
- Credit unions scored an overall NPS of 54.3% (67.7% promoters and 13.4% detractors).
- The highest credit union NPS was 79.1%, and the lowest was 19.6%.
- Credit unions’ overall NPS score exceeded that of other retail banking outlets.
- Some characteristics of promoters are:
- Likely to see the credit union as their primary financial services provider.
- Have a good overall experience with their credit union and indicate that it exceeds their expectations in multiple areas.
- Have been using their credit union for a significant amount of time.
- The drivers of NPS in credit unions are fairly intuitive: overall product/service quality, overall value, and customer service/support experience.
- High NPS correlated with high credit union asset growth, high membership growth, and high loan growth
Comments
5
this is my first time that I visit your web and it’s look that you have very interesting articles.
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Im currently doing a research on Determinants of Co-operatives Performance and would like to read more on your approach to measure members loyalty .
TQ
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I have a question regarding the calculation. Lets say you have 1,000 responses to your survey, and of those 200 were passives. When you calculate the % of promoters and detractors do you divides by 800 or 1000 responses? More simply do you subtract the passives responses from total responses.
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@Karen: yes, you delete the passives from denominator, so you would use the 800 number. Let me know if you have any further questions.
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Actually, you should use 1000. The passives are still important. If you take them out, your numbers would be inflated.
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