Xtend, Inc., a Grand Rapids, Michigan-based multi-owned cooperative CUSO, recently performed a study to determine the effectiveness of its Member Reach electronic communications service offering. The analysis reviewed data from more than one hundred thirty (130) credit unions in thirteen (13) states to determine whether a higher volume of electronic communications to members translated into a higher rate of members “opting out” of receiving these from their credit unions. The results of the study showed that there was virtually no difference in “opt out” rates for credit unions that were more aggressive on outbound member communication versus those that were not.
Scott Collins commented, “We embarked on the study for a couple reasons. First and foremost, we were looking to gather data to help validate or disprove our contention that members embraced hearing from their credit unions through Email or home banking messages. Second, this data would help us determine what future investments should be made in Member Reach, since it is one of our key businesses. Since all of the credit unions had access to the same robust set of electronic communication tools as part of their core data processing system – CU*BASE from our partners over at CU*Answers, Inc. – we felt comfortable that it would be an apples-to-apples comparison across the board. That said, I must admit I was a little surprised after our teams crunched the numbers. They were virtually identical; our Member Reach clients had an opt out rate of 2.31% and the other eighty-five (85) credit unions who did not utilize our service had an opt out rate of 2.29%. Needless to say, there has been a lot of smiling on our team lately.” Collins believes that this validates members are anxious to hear from their credit unions “when the messages are relevant to their relationship.” He also noted that several enhancements to the Member Reach service are planned in the coming months “that we hope will make it a no brainer to engage our team.”
Xtend’s Member Reach unit delivers nearly two (2) million electronic member communications to members of more than fifty (50) credit unions throughout the country.