Countless loyalty schemes make consumers jump through hoops. But this can backfire for credit agencies and financial services institutions forcing their customers to navigate the fine print. Best customer loyalty programs are those which are simple, with rewards that can be efficiently redeemed. The reward platform also needs to be mobile-first and marketing support is essential for fostering active engagement.
According to the customer loyalty census by Colloquy, an average household in developed countries like the US has membership of as many as 29 loyalty programs of which only 12 are active. Banking rewards and customer loyalty programs for credit unions were no different.
Nearly 4 of 5 customers reported rewards program is a top priority while selecting a financial institution. Around two-thirds of the customers increase the products they hold with credit companies to earn more benefits. But quality is just as important. Here are the customer loyalty programs of 2017 credit agencies cannot do without.
#1 Simplifying the Customer Experience With Pathwwway Gambling
Prior to implementing the rewards program, the credit agencies evaluate the customer needs first. This is important for credit unions and local banks that enjoy a reputation for deeper connections with communities they serve. In fact, their customer loyalty programs need to match the level of personalised services that they provide. Current consumers crave instant rewards, so a seamless experience unencumbered by challenges or hidden requirements is essential. For reducing friction, it is essential to access and track rewards from any device for customers. Additionally, the points must be accrued fast in real time to ensure users are not waiting to use their rewards. Fine print can lead to quick defections. Consumers will abandon a reward program that does not provide instant gratification.
#2 Value Beyond the Typical Points for Loyalty Scheme
More than around half of the customers want financial institutions to locate discounts for them. These are ways they can save money on banking and credit. To provide a value that transcends the typical points for loyalty scheme, reward programs can serve to be proactive about the way information about savings is shared with clients. Reward platforms track customer actions and leverage the data to extend discounts and special offers from concerned local merchants.
#3 Gamification: Increasing Customer Program Adoption through Winning Moves
Additionally, gamification can enhance customer experience. Customer focused game concepts can enhance program adoption and adherence to the reward scheme, and game odds should be beatable. Mega credit institutions like Bank of America offer cookie cutter discounts. Rewards, however, are increasingly being shaped by consumer action, preference or location. Also, they fail to foster loyalty if they do not do so, as they offer unique, meaningful value to clients.
#4 Customisation Can be a Game Changer
Along with purchasing behaviour, the rewards platform can help credit unions and community banks to identify most profitable customers and suggest customised product or service rewards in alignment with interests.
Offering customised rewards at local businesses make it easy for customers to support the community too. Capitalising on the bank local function, community banks and credit unions can start dialogue with local merchants who can become their banking customers. Reward programs that provide incentives for shopping locally are also a natural fit.
#5 Non Monetary Rewards: Why Cash is Not Always King
Cash, prizes and discounts are not the way to loyal customers, non monetary can work under some circumstances. For instance, community based institutions can draw on unique understandings of values of persons served and areas in which they work, permitting customers to convert rewards in a way that is gratifying.
#6 Make Rewards Easy to Access
Successful reward programs of credit agencies encourage greater redemptions. Consumers in different sectors including credit are moving towards brands that serve their needs fast. Brands and credit agencies that provide digital notifications about redeemable rewards offer greater success and engagement. Value of rewards provided should align with engagement and investment options for easy acquisition. Encourage redemption and reward programs that don’t rely on breakage to profit. Credit agencies are working hard to ensure loyalty programs offer reward points that are redeemable and don’t cheat the customers through banking on breakage.
#7 Marketing Advantages
Consumers expect and want to be contacted by loyalty programs with value additions. The loyalty programs customer agencies are following involve real-time, personalised omni-channel marketing techniques to increase customer activity and engagement. Reward notifications activated by time or location sensitive cues, differ from traditional programs. These can offer a credit agency the competitive advantage it seeks.
#8 Scalable Initiatives From Pathwwway Gambling
For credit card companies, successful customer loyalty programmes should be able to expand their offering and provide robust scalability. Whether it is Chase’s Ultimate Rewards or Amex’s Membership Rewards, the programs have to offer the best flexibility for customers to be able to transfer points across hotels and airlines for example. Chase is a financial services provider that offers bonus earning options for travel costs. Chase has also lifted its funding rate and offered credible point utilisation by introducing a booking bonus with points. Membership rewards are integrated with Amazon through API to ensure members have points balance offered as a payment option on the checkout page, making claiming points more convenient. JP Morgan Chase reported a 35% rise in card accounts in 2016’s third quarter following the launch of such valued and attractive rewards.
Identifying the costs associated with rewards for issuers and how these rise over time is important. Explore how credit card issuers will advance to continue getting reward benefits without additional costs. Ultimately, the top credit agencies are concerned with offering rewards that have payoffs, not payouts. The aim here should be to provide the best financial services and unique reward programmes based on the needs and requirements of the customers. Customisation is the key here as is an emphasis on the final outcome of the reward scheme.
Loyalty programs credit agencies use range from reputation and credibility management to membership rewards that offer their customers flexibility. Additionally, the stress is on providing the best services and accessible reward systems to ensure that customers don’t just make a token transaction. Acquiring customers for life involves long term commitment to initiating customer loyalty. Credit agencies that ignore this critical point risk missing out.