A SACCO can have strong financial results, attractive savings products and competitive loan rates, yet still lose members.
When members stop saving, stop borrowing, close their accounts or simply become inactive, the problem is bigger than declining membership numbers. It can affect a SACCO’s deposits, loan portfolio, income and long-term sustainability.
For SACCOs, winning back former and inactive members should therefore be treated as a strategic priority.
The first step is to understand why members are leaving.
Find out why members are leaving
Members rarely leave without a reason. Some may have moved to another financial institution because they found better loan terms. Others may be frustrated by slow services, complicated procedures, poor communication or a lack of convenient digital services.
Some members may also have stopped using their SACCO because their financial circumstances changed.
A SACCO should not assume that an inactive member has lost interest permanently. The member may simply have found the institution difficult to use.
The best approach is to ask.
SACCOs can conduct member surveys, make calls to dormant members and analyse account activity to identify common reasons for inactivity.
The information collected can help the SACCO determine whether the problem is pricing, service delivery, products, technology, communication or member experience.
Make it easier to do business with the SACCO
Convenience has become an important factor in financial services.
Members increasingly expect to check balances, make deposits, apply for loans and receive notifications without having to visit a branch for every transaction.
A SACCO that still relies heavily on manual processes risks losing members to institutions that offer faster and more convenient services.
SACCOs should therefore invest in reliable digital channels and ensure that members can access essential services securely from their phones.
Technology should not, however, replace human support. Members should still be able to speak to someone when they encounter a problem.
Give members a reason to return
Simply asking an inactive member to resume using an account may not be enough.
The SACCO needs to demonstrate why returning makes financial sense.
This could involve introducing products that respond to changing member needs, improving existing savings products or developing loan products for emerging areas such as education, housing, business, agriculture and emergency financing.
The objective should not be to create products simply because competitors have them.
Instead, SACCOs should use member data and feedback to identify genuine financial needs.
For example, a young member entering the workforce may need a different product from a member approaching retirement. A business owner may require working-capital financing, while a farmer may need seasonal credit.
Understanding these differences can help a SACCO remain relevant throughout a member’s financial journey.
Communicate with dormant members
One of the simplest ways of winning members back is improving communication.
Some members become inactive because they no longer understand what their SACCO offers.
Regular communication can keep members informed about new products, investment opportunities, dividends, interest rates, financial education programmes and changes affecting their accounts.
Communication should also be personalised where possible.
Instead of sending the same message to every member, SACCOs can segment their membership according to age, occupation, savings behaviour and financial needs.
A member who has not used a SACCO account for several years may require a different message from an active borrower.
Reward loyalty
Members want to feel that their relationship with the SACCO matters.
A SACCO can strengthen loyalty by recognising long-term members and rewarding desirable financial behaviour.
This does not necessarily mean giving away expensive incentives.
Recognition programmes, preferential access to selected services, financial education opportunities and member-focused events can help strengthen the relationship.
The most important thing is to make members feel valued rather than treating them simply as account numbers.
Improve customer service
Poor customer service can push members away faster than a bad financial product.
Members who experience delays in loan processing, unanswered complaints, unexplained deductions or unhelpful staff may eventually move their business elsewhere.
SACCO managers should therefore monitor complaints and establish clear timelines for resolving them.
Every complaint should also be viewed as useful information.
If hundreds of members are complaining about the same process, the solution may not be to train members to use it better. The SACCO may need to redesign the process itself.
Rebuild trust
Trust is particularly important in the SACCO sector because members are not merely customers. They are owners of the institution.
When members lose confidence in the way their SACCO is managed, winning them back becomes difficult.
SACCOs should therefore maintain transparency around financial performance, governance, member funds and important decisions.
Members should understand how their savings are being used and how the SACCO is performing.
Clear communication can help reduce suspicion and strengthen confidence in the institution.
Deal with dormant accounts
A growing number of dormant accounts should be treated as a warning sign.
Instead of simply recording dormant members in annual reports, SACCOs should develop a deliberate reactivation strategy.
The SACCO can categorise dormant members according to how long they have been inactive and the nature of their previous relationship with the institution.
Members who became inactive recently may be easier to reactivate than those who have not used their accounts for several years.
The SACCO can then contact members through phone calls, SMS, email or other appropriate channels and find out whether they still want to maintain their relationship.
Make financial education part of member retention
Some members leave because they do not understand how to get maximum value from their SACCO.
Financial education can change this.
Members can be educated on saving consistently, building share capital, borrowing responsibly, improving their credit profile and using different SACCO products.
Financial education also gives SACCOs an opportunity to demonstrate their value beyond providing loans.
A member who sees the SACCO as a financial partner is more likely to remain engaged.
Listen to younger members
Many SACCOs face the challenge of attracting and retaining younger members.
Young people have grown up using digital financial services and may have different expectations from traditional SACCO members.
They may want instant communication, mobile services, flexible savings options and products designed around their lifestyles.
SACCOs that fail to understand these expectations risk losing an entire generation of potential members.
This does not mean abandoning traditional members. It means developing services that can serve different generations within the same institution.
Measure whether the strategy is working
Winning members back should not be based on assumptions.
SACCOs should monitor indicators such as membership growth, dormant accounts, savings activity, loan uptake, member complaints and the number of reactivated accounts.
The management should also establish clear targets.
For example, a SACCO could identify a percentage of dormant members it wants to reactivate within a particular period and regularly assess progress.
The board and management can then determine which strategies are producing results and which ones need to be changed.
Member retention starts before members leave
The best strategy is not waiting until members disappear.
SACCOs should continuously monitor member satisfaction and engagement.
A member who suddenly stops saving, stops attending meetings or stops using digital services may already be showing signs of disengagement.
Early intervention can prevent the relationship from deteriorating.
Ultimately, winning back SACCO members is not simply about offering better loan rates or sending promotional messages. It is about understanding members, improving service delivery, providing relevant financial products and building trust.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. Email: [email protected]
