SOURCE: Member Loyalty Group

 

CHICAGO, IL--(Marketwire - July 1, 2009) - The Member Loyalty Group, a credit union-owned loyalty organization, today released its first quarter Net Promoter® Score (NPS) benchmark results for credit unions. The report details customer satisfaction levels and is a result of the collaborative efforts of the Credit Union Service Organization (CUSO) to reliably measure member feedback.

The results, pulled from surveys among 10,000 credit union members, show the relationship NPS® for credit unions to be quite high. The average credit union industry score is 55 percent, nearly five times that of the average bank NPS of 11 percent as reported in the Satmetrix Net Promoter® Benchmark 2009 for Financial Services - Banking.

"Our top priority has been to develop standard loyalty metrics using Net Promoter Score (NPS), as many credit unions have been measuring loyalty, but the methodology was not consistent across the industry," said Michelle Bloedorn, executive director of The Member Loyalty Group. "Credit unions can use this benchmark as the key member loyalty or service measure on all organizational scorecards. It is critical that it be as reliable as return on assets (ROA) and other metrics vital to managing the business."

NPS helps credit unions improve current member loyalty and grow membership through word of mouth. While most credit unions see themselves as "member-centric," previously no industry-wide standard for measuring this component of the business existed.

"A trustworthy benchmark is important to making our NPS program successful," said Laurie Gomes, director of market research at Addison Avenue Federal Credit Union. "The Member Loyalty Group gives us reliable information that provides insight into customer loyalty and satisfaction that we use to better serve our members."

The Member Loyalty Group partners with Satmetrix for its on-going research to develop the member loyalty standard metrics and transaction surveys. Satmetrix, in conjunction with Fred Reichheld of Bain & Company, co-developed the Net Promoter Score to measure customer loyalty across hundreds of organizations.

About The Member Loyalty Group

The Member Loyalty Group is a collaborative CUSO that was established in 2008 to develop a common member-loyalty measurement for credit unions and to provide shared programs and services to support Member Loyalty initiatives. The six founding credit unions are: Addison Avenue Federal Credit Union, America First Credit Union, Baxter Credit Union (BCU), Boeing Employees Credit Union (BECU), Educators Credit Union and San Francisco Fire Credit Union. For more information about Member Loyalty Group, contact Executive Director Michelle Bloedorn at mbloedorn@memberloyaltygroup.com or visit www.memberloyaltygroup.com.

For more information about Satmetrix and the Net Promoter Score, please visit www.satmetrix.com or www.netpromoter.com.

Satmetrix and the Satmetrix logo are registered trademarks of Satmetrix Systems, Inc. Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.