No matter what industry we’re targeting, the end game is always about retaining customers and yes loyalty programs are proven to beat the competition by being an exclusive retention strategy. With the increasing number of customers adapting multiple payment channels, only 30 percent of consumers are using a single source for all their financial needs. Most of the customers have already spread their payments and other sorts of financial requirements across a range of multiple providers.
Talking precisely about customer loyalty in the banking sector, the field is ultra-competitive. For accelerating the process, one direly requires showcasing something different and have an extra eye for details, to find the best marketing strategy for the customers. A survey by Deloitte states that only 19 percent of banking customers are deemed as true loyal to their bank. The listed survey findings implied similar both for USA and Europe. Suggesting that the banking industry hasn’t even got their feet wet on the aspect of building a loyal customer base and that can be considered as a major reason of customer’s constant switch.
Let’s breakdown the aspects of deriving loyalty in the financial industry with the help of a loyalty rewards program.
Financial services loyalty programs are considered as an excellent customer retention tool which aims to elevate brand love and purchasing frequency for banks and financial institutions. Though the basic definition limits to just a two liner explanation, here are some essential features that portray the characteristics of a financial service loyalty program.
No wonder businesses have always been in abundant confusions and struggles in retaining customers, it is still one of the most crucial aspects in skyrocketing a business. Here are the common challenges being faced in terms of customer retention-
To quick run the process of digital transformation, the companies are in need of a tool that can have the powers to incentivize online transactions. Its is bright new chance for the brands to indulge in being digitally active and incentivizing customers o transactions made online.
Competition is in the nerves and do we have a choice other than to look a slightly differentiated or highlight the USP to bring in more audience onboarded? A retention tool is excessively imperative to grab customer attention and prevent customers from switching from one brand to another.
You must not be the only bank or financial institution providing loyalty program for the customers, there must be hundreds of others in the race! Not every loyalty program is designed to give in the feel good factor, ensure that the loyalty program you’re offering adds some value to the customer’s regular transactions and do not seem like a not so relevant, non-performing program.
Features completely depends on the bank, whichever seems better and engaging according to the marketing strategy, here are some top features you, as a brand should definitely consider-
Every brand is different and so is their strategy to market! Remember that you must have a personalized loyalty strategy for you business wherein your customer loyalty programs can eb customized as per the need and have a sharp increase in enrollment rates and build advocacy alongside.
You can’t find all your customers through targeting from one single medium. Be amongst the smart marketers b offering an omnichannel approach for your loyalty program management. For a start opt in for omnichannel loyalty programs ensuring customers that they can earn points or redeem the rewards by keeping active participation in various activities.
A mobile wallet is excellent in keeping loyalty cards, reward coupons, passes etc. stored well. Have a feature of integrating mobile wallet which can automatically send push notifications no matter where customers are and prove as an effective option to promote the brand alongside.
Be the brand offering customers something extra from the rest! How? Offer free membership bonuses to the brands which includes prioritization in various activities, welcome gifts, offers and deals on special occasions and pretty much everything.
While some of you must be trying to find out if a financial loyalty program is worth it, leading banks have already all hands in the strategy. Some of the top names are-
Customer loyalty is a vast sector, with multiple tools to implement, manage and track. There’s an extensive use of technology in advancing digitization and letting a brand stand out from the rest in the competition. Banks have many chapters to unfold in the near future, get started with the loyalty game taking along the numerous marketing strategies you have been building through customer analyzing. Loyalty is a wide road, start your journey sooner possible!