Loyalty Programs have long been considered the right medium to not just connect with the customers but, let them stay with a brand for a longer run. Even the banking industry is now following a similar approach to loyalty. When it comes to retail banking, even the banks having the most established loyalty programs are busy making them more polished and responsive for their customers. While millions of dollars are being spent on developing loyalty programs, marketers are eagerly anticipating radical growth in sales.
The most imperative factor here is having the right strategy to get more customers onboarded and increase sales as well. There’s nothing better than an engaging loyalty program that attracts more customers and has it all in just one system.
Defining a Financial Services Loyalty Program
Today, every bank requires a bank reward program. Basically, the loyalty program for banks is a customer retention tool that aims to increase brand popularity and opportunity to foster purchasing as well. They contain a string of unique features that sets them apart from other sorts of the loyalty program. Here are some major factors-
1. As customers are not into purchasing products in the traditional way, financial loyalty programs should think of incentivizing members to make transactions using their credit cards or highlight service packages including loans and mortgages.
2. Due to its unique nature, enrolment in the financial loyalty program is limited. For becoming a member, one needs to have an active account, else it won’t be able to progress anymore.
3. Companies in this industry have a relatively lesser opportunity for interacting with their loyal audience. The customers are more likely to turn to people when it’s time to renew a contract. That’s the reason why creating new touchpoints is a priority in loyalty programs.
4. Conclusively, financial reward programs are mostly required for promoting content, educating the members about current offers, and extend the brand’s online presence as well.
Understanding the Largest Customer Retention Challenges for Financial Services
Customer retention has always been the tough part especially in terms of the financial industry as they have customers with divided attention between multiple challenges, including-
1. Digital Presence is more important than ever
For speeding up the entire process of digital transformation, most companies need a tool that incentivizes online interactions.
2. Dealing the Highly Competitive Environment
Without having a strong customer retention tool, it’s relatively easier for customers to switch to a competitor which is offering better and lucrative deals.
3. No Relevance
Customers are not interested in loyalty programs that do not add extra value to their lives. They require rewards after almost every transaction made.
Though, a loyalty program could actually help in solving all issues at once. The most imperative role is that the customers do not value loyalty programs that fail to pay attention to the attitudes, behaviors, and expectations as well. Here, the solution is to challenge the concept of loyalty but to reinvent it. Majorly, loyalty in the banking and financial services sector should be about emotional engagement, making use of a next-gen loyalty program. Through creating new touchpoints which are used for engaging customers outside of the buying cycle. It means that one can earn some benefits without paying. Companies can show that they really care about their customers and wish to learn more about them.
Best Loyalty Program Features for Financial Services
A modern loyalty program is well equipped and has all the imperative features for helping the banks and financial institutions to stand out and let the customers trust your brand.
1. Scalable Cloud Environment
No matter if you have started with just a few locations initially, your loyalty program should have the capabilities to enlarge and expand whenever it is required. Though it may seem like a manageable situation in the beginning but, would need the capacity when it’s the right time. A cloud environment can store the necessary information given by the customers and make it retrievable from almost any location.
2. Real-Time Changes
Exactly like you, your competition might also be thinking about how they can deliver some equally compelling personalized experiences. Events or industry news might change the field and a brand might have to accept whatever it takes and adapt likewise. Your loyalty program should be built to incorporate the changes on the go! You need to stay on the toes when it comes to accepting the challenges and competing at the same time. In fact every bank loyalty program should focus on creating better opportunities for customers to stay with them, leaving the competitors behind.
3. A Modern API-Based Architecture
When a loyalty program expands to new product offerings, one would be glad that you built it to easily plug into other systems the brand is already using. When new features become available for customers, they start looking into different demographics which includes easy installation, letting you spend less time getting your loyalty program to work and more time for boosting sales.
4. Real-Time Segmentation Capabilities
Personalization can keep the people coming back, so the marketing should be tailored as per the customers. Traditional marketing might rely on repetitive information for creating segments that end up too broad or too narrow which do not deliver what exactly your customers expect. The loyalty programs provide you with inside access to what customers really need. Through this information, one can craft more targeted segments and drive successful personalized marketing campaigns as well.
As mentioned, loyalty for banks is an imperative factor. Many banks are currently running a loyalty program but maximum might not have the right features to implement the best. Having a loyalty program software is always a plus for a business to not just handle the currently running loyalty program but, also to integrate the new possibilities into your already running loyalty program. Many biggies including Citibank, Bank of America, Wells Fargo, Credit Suisse, Barclays, and more are already running a loyalty program for themselves. Get started with yours soon!