Today, there are two performance differentiators in banking; product uptake and customer engagement. The good news is that these don't have to be mutually exclusive, the better news is that digital rewards & loyalty programs can fulfil both simultaneously.
These digitally integrated programs can challenge traditional methods of customer acquisition and retention by introducing cost-effective and measurable, reward and incentivisation capabilities. Becoming a platform for business innovation and growth by creating more profitable and loyal customers.
Currently, over 57% of customers view their relationship with their bank as “transaction-centric,” meaning to customers their banks are just a way to pay and save. But by offering customers rewards for transacting in places they regularly visit, banks can drive desired behaviours outside of their own brick and mortar setting. App-based or mobile reward & loyalty programs mean that banks can connect with customers in retail and digital spaces, enabling behaviour like card swipes, product use and brand engagement, all while learning more about their customers spending preferences. With the knowledge that 2 out of 3 consumers change their behaviour to maximize rewards, banks are now physically able to reward customers for interacting with them in meaningful ways, guiding customers towards greater product uptake and increased brand affinity.
Incentivising Product Uptake
Using the engagement gathered from loyalty & reward interactions enables banks to cross-sell products, thereby increasing their customer’s lifetime value. Because it’s now possible to access customers at all stages of their product uptake cycle, banks can incrementally encourage individuals to move toward becoming holistically profitable customers. A study by Accenture found that 61% of banking customers expect to have access to more online interactions across their entire customer lifecycle. This means that along with reducing costs, digital loyalty & rewards programs also fulfil customer’s future and current demands.
The added value of Loyalty & Reward services results in customers placing more trust in their bank, enhancing their sense of security and knowledge, and creating stronger feelings of loyalty to their financial services provider. John Golding Head of Banking & Remittance at wiGroup believes, ‘you’re creating advocates for your bank so these programs shouldn’t just fulfil the basic demands of your customer base, when introduced properly they should form a key part of reaching core business goals.’