Behavioral Loyalty Metrics
We look at four different metrics to develop a behavioral loyalty matrix; evaluating how your members are demonstrating their loyalty to your brand through primary consideration, increase of business, word of mouth and share of wallet.
Primary Financial Institution
Members who identify the credit union as their primary financial institution are indicating that they have chosen to do a majority of their business with you. PFI can be directly linked to higher balances, additional accounts/HH and higher share of wallet. PFI is only one way to look at behavioral loyalty; as a member may consider you their PFI from a transactional account perspective, but still look elsewhere for loans.
Enhancing the relationship between the credit union and its members through additional product usage is important to gain efficiencies and demonstrate loyalty. We will measure the percentage of households that opened additional accounts with the credit union over the last 12 months.
Member Referral Activity
With the NPS, we get insight into members “intention” or willingness to refer the credit union to others. This may or may not translate into actual word of mouth activity and organic growth through recommendations. We differentiate between intent and actual behavior to find those highly loyal members who are actively helping the credit union grow membership.
Share of Wallet
To gauge share of wallet, your credit union can use self-reported information, or you can compare member balances of deposit and loan products held with your credit union compared to balances held at other financial institutions. SOW is defined as the percentage of total balances the credit union has captured.