If you have reviewed the some of the important steps and hurdles to overcome for credit unions to improve their analytics maturity outlined in our first article on Why the Lag, then you are ready for some more steps in the process.
Maintaining data quality is a hurdle for many credit unions, but it is a critical component to becoming data-driven. To achieve consistent and reliable member data, credit unions must constantly manage data quality at the source so that they can trust and use the data to enable quicker and more knowledgeable decision-making. As the saying goes, “garbage in, garbage out” so the importance of clean data can’t be understated.
Step one is to know what data you’re collecting, why you’re collecting it and where it comes from. Make sure that every component is coming from a trusted and knowledgeable source. Validate data as it is entered by automatically flagging missing, incorrect, and/or inconsistent information. Whenever possible, eliminate the opportunity for free-text fields and opt for drop-downs instead.
If you discover problems with incoming data, go all the way back to the original source to make corrections. The data warehouse or analytics platform is not the place to make those data quality corrections. Otherwise, you will constantly be correcting for inaccuracies. Use the data warehouse to identify issues, and then make the corrections at the source.
Lack of leadership buy-in is another challenge we see for those credit unions failing to successfully implement a data strategy. For any new initiative to work well, all departments within they credit union need to communicate, work together and see the payoff of becoming data-driven. Buy-in will require fortitude and integration into the strategic plan, culture and budget. This is where analytics becomes as much of a change management problem as it is a technical one.
To gain support and financial approval for your data analytics initiatives, you need to give senior managers a snapshot of how these efforts can pay-off. Be sure to provide the “why” the credit union should invest in data analytics and the multitude of ways the data will improve efficiency, member engagement, marketing effectiveness and more. Be transparent and encourage team members to want to be a part of this transformation with concrete examples of how it will improve the “whys” for your credit union (time savings, member service increase, cost reduction, etc.) Show evidence and examples of how the competition is using data to grow and increase market share.
A lack of analytics talent is a major obstacle faced by credit unions desiring to be data-driven. Hiring, training and managing highly skilled, knowledgeable, data-savvy personnel is costly. Given the explosive growth on the job posting sites for those with analytics expertise and the intensifying competition to fill more jobs than there are qualified people, it is difficult to attract and retain the right talent.
An effective data analytics talent effort should consider not just compensation but also cultural fit. Striking this balance is critical to set both the data scientist/ data analytics hire and the credit union up for long-term success. Also, consider if anyone in house has the foundational skills necessary to build upon. Your “Excel gurus” could very well be trained to become your organization’s modern analytics expert.
Millennials, particularly, find it appealing to work with organizations with a strong social and community conscience. Credit unions inherent operating model – from their community focus to their charitable presence – are well-positioned to offer job applicants the right cultural fit.
Still not sure if your internal team has the right skills? Consider working with outsourced firms that can augment your internal data efforts.
Is your credit union making the most of member data? If not, what is holding you back? At The Knowlton Group, we believe that every organization – no matter their size – can become data-driven. The best data and analytics program starts with a great strategy and clearly defined roadmap and implementation plan. Our personalized approach to each engagement ensures that the specific needs and goals of your credit union are captured for maximum results. Want to know how you can further improve your members’ experiences? Let’s talk. Contact me today at email@example.com or call 860-593-7842.