AUX Blog

Data the Taxi Industry Wishes They Had

December 22, 2020

taxi

By Guest Contributor Anne Legg, Data Strategist and Owner of THRIVE™

Industry disruption occurs when a new market entrant solves an existing problem in a new way, and the result is a loss of market share. The obvious example is ride-sharing and its impact on the taxi industry.

Who are potential disruptors in the credit union industry? They are most likely market entrants who offer a competitive product/service that includes an exceptional end-user experience. These disruptors leverage the ease-of-use advantage to cross-sell targeted, second-tier competitive products directly.

PayPal is a prime example of a credit union industry competitor. Credit union members use PayPal as a ubiquitous person-to-person payment solution. While credit unions offer a person-to-person payment solution, the PayPal user experience and ubiquity allow it to lead the market. While losing market share in the person-to-person payment space is not ideal, the true disruption occurs when PayPal offers its competing loans and credit cards to the member. The product run-off can be slow to identify because it may appear as a closed loan or credit card account at the credit union. When the member has closed the product, it is too late in the member relationship to retain the product.

Identifying members who use PayPal is valuable to credit unions for understanding the potential of flight and insight the channel usage experience. PayPal users can provide deep insight into desired member online experience, allowing them to be test markets and beta testers of credit union online services, such as mobile banking.

In the meantime, here is a three-step framework a credit union can take to leverage its data to stop this flight.

  1. Review transaction data and look for trends about competition/friction/flight.
  2. Create offers relevant to a member.
  3. Remove as many obstacles for an effortless engagement as possible.

>>>Interested in learning more on this topic? Check out our whitepaper “Who is in Your Member’s Wallet?”

 

About the Author

Anne Legg is the founder, and principal of THRIVE™ Strategic Services. THRIVE™ works with credit unions to create revolutionary member relationships via organizational education, member-centric data strategies, and data maturity.

She is a recognized credit union business strategist, presenter author, educator with an MBA thesis on the credit union business model as well as two internationally published whitepapers on credit union business strategy. She has delivered over 100 onsite sessions to over 600 credit union senior leaders across the united states, launching their data journeys.

Anne is author of Big Data/Big Climb, the industry’s only playbook on data transformation. And she taught at the CUNA Marketing School and has acted as the subject matter expert for CUNA’s Credit Union marketing curriculum. She has also been an author to CUNA’s Environmental Scan, The Credit Union industry’s leading strategic planning guide. She has also served on various Credit Union Boards, including; CUNA’s Marketing and Business Development Executive Council, MAC, and the California and Nevada Credit Union League Public Advocacy Committee.

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