The Disconnect Between Better Service and Growth

Today’s Industry Insights newsletter from creditunions.com features an article that offers an interesting strategy for growth – better service. And while many institutions could benefit from better service, I see a major disconnect between simply offering better service and realizing the growth objectives you’ve defined for your institution.

The author states: “Not many people (in the credit union industry) seem to be talking about providing better service,” and continues to suggest that focusing on better service is the “recipe” for growth.

I would take a different stance - the issue within financial services is not with institutions talking enough about providing better service, but with institutions making generalized statements that assume traditional definitions of service.

Institutions looking to grow have much more to consider than their level of service. Perhaps the most important priority for these institutions is taking the time to fully understand their markets, their customers and their competitive position. Many institutions fail to look further than demographic data and peer group studies in attempts to identify growth opportunities. And while these pieces of information are helpful, they do not paint the whole picture and fall short of providing any substantive strategic direction.

If you’re really looking to grow, start by assessing your market. This means quantifying available dollar potential; identifying available niche opportunities; projecting dollar growth; and taking a good look at your institution relative to your competition and your customers' needs.

Better service is not the silver bullet that will allow your institution to acheive and sustain growth; and while there is no silver bullet - any institution can take the first step of assessing their market to determine unique opportunities for growth.