Member Effort Survey
According to research published in the Harvard Business Review, measuring customer effort outperforms the Net Promoter Score and customer satisfaction measures in predicting customer behaviour. This research has led Satori Consulting Inc. to partner with the US firm Competitive Edge, to bring the Member Effort Survey technology and practices and strategy, to Canadian Credit Unions.
Member Effort Survey measures the amount of effort that a member needs to exert to do a transaction or conduct banking at a credit union. Whether it is applying for a loan, accessing mobile banking, calling a branch or cashing a cheque, the data collected provides insight to processes or channels that require more effort and therefore provides tangible data to create internal changes to streamline processes and make dealing with the organization easy and seamless.
The Statistics Speak Volumes
According to the Harvard Business Review article, Stop Trying to Delight Your Customers, of the customers who reported low effort, 94% expressed an intention to repurchase, and 88% said they would increase their spending. Only 1% said they would speak negatively about the company. Conversely, 81% of the customers who had a hard time solving their problems reported an intention to spread negative word of mouth. In short loyalty is not driven by happiness, but rather it is driven by banking made easy.
Timeliness is Critical
Member Effort Surveys are sent via email based on a members most recent transaction. Focussing on the most recent transaction allows the Credit Union to be agile in its reaction, and reach out to rectify a poor situation or to simply thank the member for being a member. Both outreaches are equally as powerful.
The timeliness of the feedback is equally as important to uncover trends within an organization. Whether issues are at the branch, department, product, staff level or systemic across the organization MES is a wealth of information that can quickly right a ship that is going off course.
Once a year member surveys are good, but they are typically answered by members that are highly engaged and happy or member who at that moment in time is upset. With a typical 25% – 30% response rate, it leaves a vast group of members who go unheard. With MES, the survey response rates are similar but the bias of happy is taken out of the equation, providing a more accurate measurement across multiple channels.
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