Some say it takes 21 days to form a new habit. Some say it takes at least 66 days. Either way, this pandemic has got you covered.
The months-long quarantine period prompted major behavioral shifts for people forced to shelter-in-place – some good (new exercise regimen!), some of questionable merit (insert name of popular binge-worthy show). As these new behaviors took hold and became habits, consumers’ mindsets adapted. The result: a new set of expectations about a great many aspects of our lives that we so often overlooked in the distracting busy-ness of our pre-pandemic lives: how we earned a living, how we educated our children, and how we spent our money and time. We re-evaluated our priorities as individuals and as a society. As consumers, we developed new expectations about remote access, online services and personalization. Now that these expectations have had time to take root, they will not be cast aside so easily with the lifting of lockdown restrictions.
Betting on Digital
Just as the behavioral shifts in most facets of life are reflected in how the country gradually reopens (or not!) from the COVID-19 outbreak, leaders of financial institutions are trying to make out the hazy shape of the “next normal” of consumer banking. With branch lobbies shuttered, many consumers were forced to shift to online and mobile banking for their routine transactions. As consumers overcome their initial resistance to change, financial institutions are counting on them to become more comfortable with these forms of digital banking technology. If consumers find these digital channels to be easier, faster, and just as secure as traditional banking channels, the shift will become permanent.
But here is a huge “cut through the haze” warning: If the digital experience is less than ideal – and the human support for those channels is not up to the task of making the digital experience stand out from the competition – the institution may actually be steering its customers or members into a relationship with another financial services provider. There’s no shortage of banking options out there.
So what you need to know is: Are your digital experiences drawing your members closer to you…or driving them away?
Need a Playbook?
The digital transformation of society in general, and the banking industry in particular, has or will impact every facet of our lives. Over the years credit unions and banks have introduced ATMs, online banking, mobile banking and other options to make banking more convenient and “always-on.” There is less demand for brick-and-mortar locations to carry out routine transactions. Even with this evolution, there will always will be those who prefer the personal touch and human interaction of an in-branch visit. The financial institution that does both digital and human experiences well is the one that will win.
As in any time of great change, new opportunities will emerge along with the challenges. Some businesses will need to figure out how to win back old customers who have developed new mindsets. Other organizations will try to increase market share by appealing to consumers’ newly formed habits.
No one has a playbook for this exact scenario. But here are three things you must examine, reflect, and talk about with other top executives in your organization, to inform your strategy and guide its execution for the uncertain period ahead:
- Are we using digital capabilities to complement the human element…or as a substitute?
- Do we understand the “why” of our members’ behaviors, not just the “how”?
- Can we effectively predict where intervention can keep members from leaving – or are we just hoping they will stick with us?
Much is uncertain about a future where predictability seems to be in short supply. But there is a way to a clear path forward for Credit Unions – if they’re strategically and tactically listening to their members.
Do you have the data-driven insight to reveal how your members are experiencing you through all channels? Learn about the comprehensive Insight Builder survey platform:
