Vertice AI: Measure & Manage What You Care About

Have you heard the quote, “We don’t know how to measure what we care about, so we care about what we measure”? ¹ How about Peter Drucker’s quote, “You can’t manage what you can’t measure”?

These quotes encapsulate a dilemma faced by many credit unions in the modern age where data is abundant, member expectations are evolving and business models are changing. Being able to define the right measurements, the process to measure and the actions that impact the measures can seem daunting and complex – but it does not have to be.

Dedicated to the credit union movement, Vertice AI believes credit unions should care about measuring the cooperative principle of member economic participation.  Member economic participation provides your credit union with the means for growth and to live out the mission of people helping people. 

In this blog post, we will explore why Vertice AI focuses on member economic participation and how we enable credit unions to measure and positively impact economic participation.

Measurement Dilemma Part 1: What do we care about measuring?

You may know what you care about but not how to measure it; or you may have existing measures that you must care about for the sake of availability. But are you truly measuring what you care about?

The credit union movement is rooted in the cooperative principles.  These principles shape credit union missions, business models, communities impacted and, perhaps most importantly, how the members within those communities are served.

Understanding the cooperative principles is what has and continues to shape our industry, so should these principles be what we care about measuring?  At Vertice AI, we believe you should care about measuring the cooperative principles, and we are focused on empowering credit unions to impact member economic participation.

Member economic participation drives your credit union growth and enables you to better serve your members by providing ownership, benefits and services not available from other financial institutions. Member economic participation creates a positive feedback loop of growth and service. If you continue to grow member economic participation, you will continue to grow the opportunities for serving your members so that they will, in turn, increase their participation.

Measurement Dilemma Part 2: How do we measure what we care about?

The positive feedback loop of growing member economic participation is exactly why the Vertice AI Solution – purpose-built to drive growth for credit unions – has developed measurements for member economic participation. Our solution empowers your credit union to measure what you should care about using the data you already have.

How It Works:

1. Measuring Member Participation: Vertice AI quantifies economic participation using a proprietary scoring system we call MPP (Member Product Participation). It analyzes five key dimensions, including product usage, tenure, balances, transactions and future potential to determine a member's economic participation.
2. Visualizing Membership Participation: Members are then grouped into participation levels, providing a clear view of engagement patterns and highlighting opportunities to deepen relationships.
3. Tracking Growth: Vertice AI has developed a metric called the Summit Rate, which measures shifts in participation over time, helping credit unions track trends and identify strategies that drive meaningful member growth.

Simply put, Vertice AI believes if you want to grow your credit union you should care about measuring member economic participation. The Vertice AI solution provides your credit union with the ability to quantitatively measure participation and changes over time from the data you already have.

Moving Past the Dilemma: Measuring and managing what you care about

Great, now we can measure what we care about. But how do we manage what we can measure?

If we revisit the dimensions of the MPP measurement, member economic participation is impacted by the number of products and services, and higher tenure, balances and transactions. Generally, the more transactable, non-maturing, balance-holding products a member has, and the more services such as online banking they use, the more participatory they are. 

Does that mean we should market every product and service we offer to every member we serve in the interest of increasing participation? 

Vertice AI believes this approach leads to members unsubscribing from marketing communications and does not give members the impression their credit union knows them and cares about their individual needs and situations. Instead, the goal is to target the right members at the right time with the right offer. A recent Harris Poll study reaffirms the desire for personalization from consumers, with 74 percent of respondents expressing a desire for more personalized banking services.²

Using actionable analytics available through the Vertice AI solution, you can identify targeted opportunities to market specific products to the members who are most likely to adopt that product. By delivering the products that meet members’ individual needs, the more likely they are to adopt, fund and transact on those products. Thus, personalized marketing is the accelerator to improving member economic participation and growing your credit union.

The Bottom Line

In summary, Vertice AI believes that long-term sustainable growth for credit unions is achievable by measuring what you care about and managing what you measure. You should care about member economic participation, and you can positively impact participation through personalized and targeted marketing.

The Vertice AI solution leverages existing data to quantify participation, provide actionable insights and track changes over time through:

1. Measuring member participation (MPP Scoring).
2. Understanding what members are good candidates for improved participation (Participation Leveling).
3. With this understanding, and the advanced analytics offered by Vertice AI, identifying and executing personalized and targeted product campaigns for these members.
4. Measuring the impact to member economic participation and adjusting strategy (Summit Rate).

Measuring and managing economic participation is key to growth. If you are looking to drive long-term sustainable growth for your credit union, move past the measurement dilemma with Vizo Financial and Vertice AI.

1 Dancy, Chris. Don't Unplug: How Technology Saved My Life and Can Save Yours Too. Atria Books, 2018.

2 The Harris Poll. Unlocking the Power of Personalized Banking: Consumer Research Insights. 2024, https://theharrispoll.com/briefs/unlocking-the-power-of-personalized-banking-consumer-research-insights/.

Content provided by Vertice AI