The NAFCU Journal May-June 2020 - 22

marketing and advisory services for FIS,
says, "Too much data can keep people
from focusing on the appropriate conclusion. You want to use the correct data
- and the correct amount of data - to
help you make a good decision and not
end up with analysis paralysis."

Partnering
for Growth

E

very credit union can benefit
from acquiring and utilizing
member data. Yet not every credit
union has staff trained for and experienced in data analysis. In those
cases, it may make sense to work
with a third party that can bring
expertise in both data analytics and
the latest data privacy regulations.
"It's incredibly important that you
partner with someone you can trust
and who can help you be successful
in the market within the context of
changing laws," says Grayson Clarke
of Mastercard, which is a NAFCU
Services Preferred Partner. 
Lesley DeCator of FIS, another NAFCU
Services Preferred Partner, agrees,
adding that a partnership with data
experts also can help credit unions
brainstorm the right plan for putting
that data to work. "My team can help
credit unions identify the appropriate
data set and then help them break it
down and draw conclusions," she says.  

Misguided Metrics

Avoiding "analysis paralysis" is only one
of the challenges that must be addressed
if credit unions are to develop successful
growth strategies based on data analytics.
Sometimes, DeCator says, "people aren't
really mining the data and listening to
what it's telling them. Many times, they
go in with a hypothesis or a competitive
strategy without really understanding
the member behavior. If you're going to
work with data, make sure you're letting
the data drive the conclusions.
"Avoid that focus-group-of-one mentality,
where just because I think it's a good idea
or my behavior is a certain way, that's
enough to start driving development." 
Anyone who works with data knows it's
easy to use data interpretation to support
any number of positions and agendas. Just
because a particular product is touted at a
conference or the members at XYZ Credit
Union are clamoring for a particular new
service doesn't mean either one is right for
you and your members. Let an objective
analysis of the data decide. DeCator says,
"It's absolutely critical that you're building
something the membership really does
want, not just burning resources on something that might be trendy."

Grayson Clarke, senior vice president
of data and services for Mastercard,
believes it is also critical to take a holistic
look at the results of any data-based initiative. "You can run a well-intentioned,
well-designed outreach to members,
but if you don't know where it worked
and why, then you miss the insight that
allows you to get better at creating value
for members next time." 
In addition, Clarke cautions against measuring only first-order metrics. "Let's say
you're trying to drive a given behavior,
like spend growth on debt using benefits communications or rewards. It is a
mistake to only measure the impact of
actions on spend dollars. It's important
to look at the entire customer relationship to see whether that spend growth
also led to other changes, like higher
deposit balances. Understanding how
actions impact the overall relationship
and how it's growing, as opposed to just
the first-order metrics, is key to longterm success." 
Perhaps the most significant challenge
to effective data use is the ongoing
changes to data-privacy regulations
being implemented - and proposed -
across the United States and around
the world.

Partnerships, like data itself, are one
more tool available to credit unions
for helping the member relationship
evolve and grow. "At the end of the
day, data can tell us what members
are choosing to use and how it's driving value for them," Clarke says. "That
way, organizations have a measure to
know whether they are investing in
the right approach to grow relationships and their business."

22

THE NAFCU JOURNAL  MAY-JUNE 2020



The NAFCU Journal May-June 2020

Table of Contents for the Digital Edition of The NAFCU Journal May-June 2020

The NAFCU Journal May-June 2020 - Cover1
The NAFCU Journal May-June 2020 - Cover2
The NAFCU Journal May-June 2020 - 1
The NAFCU Journal May-June 2020 - 2
The NAFCU Journal May-June 2020 - 3
The NAFCU Journal May-June 2020 - 4
The NAFCU Journal May-June 2020 - 5
The NAFCU Journal May-June 2020 - 6
The NAFCU Journal May-June 2020 - 7
The NAFCU Journal May-June 2020 - 8
The NAFCU Journal May-June 2020 - 9
The NAFCU Journal May-June 2020 - 10
The NAFCU Journal May-June 2020 - 11
The NAFCU Journal May-June 2020 - 12
The NAFCU Journal May-June 2020 - 13
The NAFCU Journal May-June 2020 - 14
The NAFCU Journal May-June 2020 - 15
The NAFCU Journal May-June 2020 - 16
The NAFCU Journal May-June 2020 - 17
The NAFCU Journal May-June 2020 - 18
The NAFCU Journal May-June 2020 - 19
The NAFCU Journal May-June 2020 - 20
The NAFCU Journal May-June 2020 - 21
The NAFCU Journal May-June 2020 - 22
The NAFCU Journal May-June 2020 - 23
The NAFCU Journal May-June 2020 - 24
The NAFCU Journal May-June 2020 - 25
The NAFCU Journal May-June 2020 - 26
The NAFCU Journal May-June 2020 - 27
The NAFCU Journal May-June 2020 - 28
The NAFCU Journal May-June 2020 - 29
The NAFCU Journal May-June 2020 - 30
The NAFCU Journal May-June 2020 - 31
The NAFCU Journal May-June 2020 - 32
The NAFCU Journal May-June 2020 - 33
The NAFCU Journal May-June 2020 - 34
The NAFCU Journal May-June 2020 - 35
The NAFCU Journal May-June 2020 - 36
The NAFCU Journal May-June 2020 - 37
The NAFCU Journal May-June 2020 - 38
The NAFCU Journal May-June 2020 - 39
The NAFCU Journal May-June 2020 - 40
The NAFCU Journal May-June 2020 - 41
The NAFCU Journal May-June 2020 - 42
The NAFCU Journal May-June 2020 - 43
The NAFCU Journal May-June 2020 - 44
The NAFCU Journal May-June 2020 - Cover3
The NAFCU Journal May-June 2020 - Cover4
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_NovemberDecember2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_SeptOct2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_JulAug2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_MayJun2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_MarApr2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_JanFeb2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_NovDec2019
https://www.nxtbook.com/ygsreprints/NAFCU/G109023_nafcu_septoct2019
https://www.nxtbook.com/ygsreprints/NAFCU/G106941_nafcu_julaug2019
https://www.nxtbook.com/ygsreprints/NAFCU/G105388_nafcu_mayjun2019
https://www.nxtbook.com/ygsreprints/NAFCU/G103030_nafcu_marapr2019
https://www.nxtbook.com/ygsreprints/NAFCU/G88665_nafcu_janfeb2019
https://www.nxtbook.com/ygsreprints/NAFCU/G100235_nafcu_novdec2018
https://www.nxtbook.com/ygsreprints/NAFCU/G98517_nafcu_septoct2018
https://www.nxtbook.com/ygsreprints/NAFCU/G96479_nafcu_julaug2018
https://www.nxtbook.com/ygsreprints/NAFCU/G93390_nafcu_mayjune2018
https://www.nxtbook.com/ygsreprints/NAFCU/G90161_nafcu_marapr2018
https://www.nxtbook.com/ygsreprints/NAFCU/G88665_nafcu_janfeb2018
https://www.nxtbook.com/ygsreprints/NAFCU/G83806_nafcu_novdec2017
https://www.nxtbook.com/ygsreprints/NAFCU/G80296_nafcu_septoct2017
https://www.nxtbook.com/ygsreprints/NAFCU/G79086_nafcu_julyaugust2017
https://www.nxtbook.com/ygsreprints/NAFCU/G75911_nafcu_mayjune2017
https://www.nxtbook.com/ygsreprints/NAFCU/G73247_nafcu_marapr2017
https://www.nxtbook.com/ygsreprints/NAFCU/G71923_nafcu_janfeb2017
https://www.nxtbook.com/ygsreprints/NAFCU/G69249_nafcu_novdec2016
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_septoct2016
https://www.nxtbook.com/ygsreprints/NAFCU/g63853_nafcu_julaug2016
https://www.nxtbook.com/ygsreprints/NAFCU/g61005_nafcu_mayjun2016
https://www.nxtbook.com/ygsreprints/NAFCU/g58935_nafcu_marapr2016
https://www.nxtbook.com/ygsreprints/NAFCU/g56716_nafcu_janfeb2016
https://www.nxtbook.com/ygsreprints/NAFCU/g55605_nafcu_novdec2015
https://www.nxtbook.com/ygsreprints/NAFCU/g53582_nafcu_sepoct2015
https://www.nxtbook.com/ygsreprints/NAFCU/g52154_nafcu_july2015
https://www.nxtbook.com/ygsreprints/NAFCU/g50302_nafcu_mayjune2015
https://www.nxtbook.com/ygsreprints/NAFCU/g48554_nafcu_marapr2015
https://www.nxtbook.com/ygsreprints/NAFCU/g47118_nafcu_janfeb15
https://www.nxtbook.com/ygsreprints/NAFCU/g45886_nafcu_novdec2014
https://www.nxtbook.com/ygsreprints/NAFCU/g44155_nafcu_sepoct2014
https://www.nxtbook.com/ygsreprints/NAFCU/g42892_nafcu_julyaug2014
https://www.nxtbook.com/ygsreprints/NAFCU/g41296_nafcu_mayjun2014
https://www.nxtbook.com/ygsreprints/NAFCU/g39799_nafcu_marapr2014
https://www.nxtbook.com/ygsreprints/NAFCU/g38961_nafcu_janfeb2014
https://www.nxtbook.com/ygsreprints/NAFCU/g38041_nafcu_novdec2013
https://www.nxtbook.com/ygsreprints/NAFCU/g36539_nafcu_sepoct2013
https://www.nxtbook.com/ygsreprints/NAFCU/g34910_nafcu_julaug2013
https://www.nxtbookmedia.com