In an era where members expect tailored experiences from their financial institutions, credit unions must evolve to meet these demands. To excel, credit unions need to integrate AI-powered solutions with personalized member engagement strategies. This dynamic combination not only meets member expectations but also drives growth and loyalty. BlastPoint’s cutting-edge tools are designed to help credit unions achieve these goals effectively.
To see these strategies in action, let’s first explore a case study that demonstrates how integrating AI tools and personalized engagement drives impressive results for credit unions and and an increase in wallet share, before diving into the detailed solutions BlastPoint offers.
Boost Financial Accessibility for Low Income Members with AI-Driven Engagement Strategies
Credit unions and CDFIs, focusing on Low to moderate-income (LMI) members, leverage advanced data analytics and AI technologies to enhance personalized engagement. This data-driven approach leads to a remarkable 271% increase in engagement and 2.8x increase in product adoption with Low- and Moderate-Income Members, dramatically improving outreach and financial inclusion for diverse LMI segments.
Why Increasing Wallet Share is a Winning Strategy
Growing wallet share from current members is a highly effective strategy for financial institutions. According to a PWC estimate, financial institutions can generate a 70% return on initiatives targeting existing members, compared to just 10% when targeting new members. This underscores the importance of making smart choices with limited resources to achieve higher-margin growth.
There are several reasons why focusing on wallet share is beneficial:
- Strengthening Primary Relationships: Increasing wallet share enhances primary relationships with members. This is critical as consumers today have more choices and easier access to financial products and services. Credit Unions need to concentrate on growing business with existing members to prevent attrition and secure primary institution relationships.
- Shifting Revenue Mix: Growing wallet share by adding new products can shift income from transactional to fee income. By offering additional products such as loans and investment options, credit unions can increase their fee income.
- Improving Return on Member Acquisition Costs: Member acquisition costs are significantly higher for new members than for existing ones. By focusing on existing members, credit unions can achieve cost savings and more effective returns compared to efforts to win new members.
- Enhancing Sales and Marketing Efficiency: Targeted and personalized offers are more efficient than broad, untargeted marketing campaigns. By using a targeted approach, credit unions can make personalized offers to each member based on their specific needs, leading to better returns.
Strategies to Expand Share of Wallet and BlastPoint Comprehensive Solutions
To effectively grow share of wallet from existing members, implementing these strategies is essential.
BlastPoint’s solutions are designed to effectively cover all the essential strategies for expanding share of wallet from existing members:
| Action Item | Detail | BlastPoint Key Features |
| Identify High-Opportunity Segments | Focus on individuals and segments with the greatest potential for increased engagement and product adoption. | Segmentation Propensity Scoring Predictive Analytics 360-degree member insights |
Define Revenue Opportunities | Recognize and assess opportunities for generating additional revenue from existing members, including those outside current product lines. | Segmentation Predictive Analytics Next Best Product |
| Match Products to Members | Align targeted product offers with the specific needs and preferences of each member to ensure relevance and increase uptake. | Predictive Modeling Next Best Product |
| Prioritize Conversion Opportunities | Concentrate efforts on segments with the highest likelihood of conversion to maximize return on marketing investments. | Member Segmentation Smart Lists |
| Leverage Historical Data | Develop marketing strategies based on past member responses and behaviors to enhance the effectiveness of future campaigns. | Data Cleansing and Consolidation Trend Analysis Predictive Modeling Member Segmentation |
Harness AI-Powered Solutions to Drive Growth
AI-powered solutions provide invaluable insights into member behavior and preferences, enabling credit unions to craft highly personalized marketing strategies. By leveraging advanced analytics, credit unions can make data-driven decisions that enhance member engagement and increase wallet share.
Leveraging BlastPoint’s Solutions for Enhanced Share of Wallet
BlastPoint offers advanced AI-powered tools that help credit unions maximize their share of wallet through deep member insights and personalized engagement. Here’s how BlastPoint drives growth and efficiency:
Segmentation & Propensity Scoring
Segmentation
Segmentation is a strategic process of categorizing the member base into distinct groups based on shared characteristics such as income level, account balances, loan history, and credit scores. This analytical approach facilitates the development of targeted marketing strategies customized to cater to the unique needs and preferences of each group. By tailoring communications in this manner, credit unions can significantly enhance the relevance and effectiveness of their outreach efforts.
Propensity Scoring
Complementing segmentation, propensity scores offer a numerical estimate of the likelihood that an individual member within these segments will be likely to take action . This level of detailed targeting assists in identifying not only which segments are generally more inclined to adopt but also pinpointing specific individuals within those segments who are most likely to take action. By integrating these scores into their strategy, credit unions can allocate resources and tailor messaging more efficiently.
(A propensity ranking of consumer’s likely preference for daytime TV advertising. 1-10 where 1 = least likely, 10 = most likely)
The image above illustrates channel preferences by segments. The top two groups, Checking Account and Deposit Account display a high affinity for daytime TV, suggesting that commercials aired during the day could be effective in reaching these segments.
(A propensity ranking of an individual’s likelihood to use Facebook. 1-10 where 1 = least likely, 10 = most likely)
The image above illustrates social media preferences by segments. Deposit Account displays the highest affinity for Facebook, suggesting that Facebook ads could be effective in reaching this segment.
Predictive Analytics & Next Best Product Recommendations
BlastPoint’s models analyze first-party, open source, third-party, and proprietary data to identify the “Next Best Product” for each member, considering factors like transactional behaviors and life events. This ensures timely and relevant product recommendations, enhancing member satisfaction and boosting conversion rates.
Driving Engagement with Next Best Product: Success Story from a Montana Credit Union
One notable example with BlastPoint’s Next Best Product is from a credit union in Montana. They utilized our predictive models to boost engagement with their new CD (Certificate of Deposit) product. The outcome was remarkable, with a remarkable 90% correlation between our model’s predictions and actual member engagement. This resulted in a substantial 17% increase in deposits, totaling over $40 million within just 60 days.
This case study underscores how BlastPoint’s predictive models can adeptly identify and promote the next best product to the appropriate members, catalyzing significant growth and engagement.
Smart Lists
BlastPoint’s Smart Lists are a powerful tool for identifying and targeting high-potential leads using advanced AI and machine learning. Smart Lists are tailored to include prospects most likely to respond to specific products or services and can be seamlessly integrated with your marketing automation systems.
This analysis output drives Smart Lists by identifying the locations of legacy members and the sources of new members. This identification serves as a key factor in creating targeted and effective Smart Lists.
This makes them a cost-effective and essential resource for enhancing member acquisition and engagement strategies.
360 Profiles
By visualizing high-opportunity segments and integrating data from various sources, BlastPoint creates detailed 360-degree member profiles. This holistic view helps credit unions prioritize high-potential segments and tailor marketing strategies effectively.
Boosting Share of Wallet with BlastPoint’s AI-Powered Solutions
BlastPoint’s AI-driven solutions provide credit unions with the tools needed to effectively increase share of wallet and drive business growth. Through advanced predictive analytics, targeted product recommendations, comprehensive member profiles, and smart lists, BlastPoint helps credit unions enhance their marketing strategies, build stronger member relationships, and achieve higher revenue outcomes.
Ready to transform your credit union’s growth strategy? Contact us today for a demo and see the difference firsthand.