How to Address Decreasing Member Loyalty
Member loyalty has been steadily decreasing over the years as borrowers are able to conveniently shop rates online before making a purchase. Lenders are investing thousands of dollars in online advertising and mailers hoping to attract borrowers in a highly competitive market. While these advertisements may generate new leads, they don’t encourage loyalty or promote relationship lending.
A more effective marketing strategy is providing a valuable online car research and buying tool for members to utilize at the start of the car buying process. Member Auto Center links inventory from reputable local dealerships directly to your credit union’s website. When a member finds a vehicle they like, they are prompted to apply for a loan with your credit union. Once approved, they can be provided with an Approval Certificate to take with them to the dealership. This keeps your credit union in control of your member’s financing and makes the buying process much easier, producing loyalty and member satisfaction.
Another way to gain loyal members is by garnering referrals. Borrowers are more likely to choose a credit union or bank based on a referral than an ad campaign because they want to know that they will be treated fairly. One way to increase referrals is by partnering with local dealerships. Keystone Lending Alliance has built strong relationships with dealerships throughout Pennsylvania, so you don’t have to, and loans can be generated quickly. As dealerships become familiar with your credit union on our program, they will begin to send loans to your credit union through our indirect lending platform.
Add value with a focus on convenience, automation and protecting your members. Autopay, mobile banking, and online chat options encourage timely payments and enhance member experience. Loan insurance products, such as Insurian’s CU Member Vehicle Return Program (VRP), provide peace of mind and protection for your members. Keystone Lending Alliance has partnered with Insurian to offer VRP to our credit union members. Borrowers can return their vehicle to have their auto loan balance paid in full if they experience a qualifying life event, even if they owe more than the vehicle is worth. Services like these build your members’ trust, increasing the likelihood that they will return for their next loan and open more accounts with your credit union in the future.
Finally, show your members that they matter! Thank them for their business by offering small bonuses such as member specials or exclusive member benefits. Keystone Lending Alliance rewards returning credit union members with a rate discount on auto loans, promoting loyalty and satisfaction.
When members are treated well, they become members for life. They may also recommend your credit union to their friends and families, leading to more referrals and loyal members.
Keystone Lending Alliance values member loyalty and consistently directs members back to their credit union when decisioning indirect auto loans. If you would like to learn more about Member Auto Center, indirect lending, or our partnership with Insurian’s Vehicle Return Program, give us a call at 724-934-3394. Our management team would love to discuss these options further with you to see if they would be a good fit for your credit union’s needs.
Keystone Lending Alliance, LLC 6021 Wallace Road Ext. Suite 100 Wexford, PA 15090 724-934-3394 (p) | 724-934-3389 (f) www.keystonelendingalliance.com