As the world's largest credit union and serving the needs of all Department of the Defense (DOD) military and civilian personnel and their families, Navy Federal has a very large and important clientele to please.
That's why it invested in Predictive Analytics software from SPSS Inc. (Nasdaq: SPSS) to clearly and specifically understand the detailed needs of its customers.
Navy Federal uses market-leading SPSS Predictive Analytics software to create a vital one-to-one relationship with its nearly 3 million members, and thus increase overall customer understanding, improve satisfaction and ultimately reduce member churn.
Credit unions differ from traditional banks as they are organized by and for the benefit of members. They focus on enabling members to gain economic independence, no matter their income, and educate members in financial matters.
To effectively understand how the organization could better serve members, Navy Federal reached out individually to its membership to obtain key attitudinal information. The credit union created a satisfaction survey with indicators related to overall corporate satisfaction, product and channel satisfaction, general member usage, competitive information and special interest surveys on product and service issues.
Navy Federal then used market-leading SPSS Predictive Analytics technology to analyze the survey data, seeking hidden variables or patterns that could be used in creating specific programs to maximize member satisfaction. The results: Predictive Analytics identified a need to enhance bill payment methods, increase the size of the credit union's call centers, and expand the branch office network.
This analysis lead Navy Federal to proactively add free online bill payments, expand its call center, develop additional checking products tailored to specific groups of members and also invest capital to build new branch offices.
"SPSS has unlocked the value of our data with technology to identify how we can best serve, grow and expand our memberships," said Alan Payne, manager of member research and analysis at Navy Federal Credit Union. "Our organization has a greater ability to spot trends and changes immediately - resulting in improved response time to our members."
Additionally, the member research group at Navy Federal uses SPSS Predictive Analytics to analyze member lifetime relationship variables, satisfaction and participation to help develop special products, promotions and services. A direct result of Navy Federal's commitment to customer satisfaction has been their impressive member retention statistics of more than 96 percent.
Payne continued, "Our organization is focused on providing members with the best financial products and services that we can offer and SPSS gives our organization a clear, detailed understanding of each customer, which is vital to the growth and length of membership of our members."
Jack Noonan, SPSS chairman, president and CEO, said, "Navy Federal has provided the military community and their families with trusted financial programs geared to fit every budget and purpose. SPSS is proud to offer a software solution that predicts future actions and outcomes and allows organizations to make more informed decisions, attract and retain customers, grow revenue, reduce fraud and mitigate risk."