Revamping Loyalty program for Financial Institution
Gone are the days when financial institutions were all about regular transactions, monotony, and no engagement throughout the association! Today, banks and financial institutions are adopting an advanced approach to create customer engagement and retention. With consumer behavior flipping upside down, it is imperative to have a loyalty program for financial institutions. The right bank loyalty software can bring excellent results in attracting more customers onboarded and retaining the existing ones as well.
A loyalty program for financial institution is Much More than a Retention Strategy
A bank loyalty program is not just a regular retention strategy, it’s basically an opportunity to upgrade, grow and flourish a business. We can witness tons of digital banks with outstanding services and products coming into action but, does that mean the customers will decrease in number drastically? Not necessarily! Every customer is looking for better deals, lesser pricing options, and of course better financial products to experience the diversity of digital banking options.
Here comes the time when it’s necessary to have a bank loyalty program software! With the diversity in digital banking, customers can have heaps of options, and with every digital banking financial institution having a loyalty program added in, there’s an even more exciting chance to amaze customers with the pouring in deals and offers. Providing customers with the right solutions can help a brand in gaining new customers and turning regular customers into brand advocates. A survey states that 73% of consumers are more likely to recommend a brand with a robust loyalty program.
Traditional Loyalty Programs are far behind the race
New loyalty strategies are bouncing in, with more dedicated customer loyalty programs focusing on personalization and business growth. Banks are no longer running the classic loyalty programs offering similar generalized offers. It’s time to fancy all that monotony around with new, strategized, and revamped loyalty programs. Today, loyalty is an unmissable aspect, and in the era of digital banking, financial institutions should be highly focused on enhancing customer experiences and providing streamlined services that expand the curriculum of what customers can do just through mobile platforms.
So, emerging technologies, revamped strategies and so much more has now made traditional loyalty program take the back seat, and the new era offers smarter loyalty solutions to slide in.
What is a Financial Service Loyalty Program?
Exactly as the name says for itself, these are the reward programs specially designed and developed for loyal customers. Used as an effective and impactful tool for customer retention targeting to increase the brand value and purchase frequency for the banking and financial services industry. Unlike the regular loyalty programs curated for e-commerce, retail, etc. Financial Service Loyalty Programs are the most rewarding of all giving customers an opportunity to earn reward points, cashback offers, and even extra benefits on all banking activities.
Dealing with the biggest challenge for financial institutions- Customer Retention
Though not just for financial institutions, customer retention is by far the most complex challenge today which has been a pain point for most businesses. Here are three challenges you need to keep your focus on sorting out-
Enhanced Digital Presence
To speed up the process of digital transformation, companies are in need of a tool that can incentivize online transactions. Loyalty programs are one such solution to track, analyze and manage the process of digitally rewarding customers.
Extremely Complicated Environment
In absence of a strong customer retention tool, there’s a fair chance for customers to find alternative options in terms of similar services. Differentiate yourself from the rest of the competition with a smart loyalty program offering better deals and personalized offers to the customers.
Irrelevancy
Customers are smart enough to decide what is more relevant to them. They are more interested in loyalty programs that add value to their regular lives rather than the ones which are just offering the regular deals any other in the competition can provide.
Features to be considered for Building the best Loyalty Programs for Financial Institutions
Modern loyalty programs help banking and financial institutions in standing out and fulfilling imperative business goals. Here are the features to consider-
Membership-Based Rewards
Rewards should be for the members who have been associated with you for a long time, the ones who are actively participating in events, the ones who are the highest spenders, etc. As a brand offering loyalty rewards, you can encourage free program renewals, VIP access to sales, and upgrade loyalty program tiers based on high spending, long association, or any factor you would like to consider.
Personalized Rewards for Loyal Customers
Generalized offer campaigns are no longer the right way to capture customer attention! It’s time to go personalized! Offer a plethora of incentives to the audience, give cashbacks, gift card rewards, and personalized deals to the customers who have been looking for some particular offers or have been associated with the brand for the longest time. provide customers loyalty points that can be easily redeemed at various options including flight bookings, mobile & DTH Recharge, offers, etc.
Membership Bonus
Not every member is the same, some might be frequent purchasers, and some might just be genuine customers who have been supporting you since the beginning! Provide free membership bonus to the filtered audience based on their reward point balance etc. Some great ways to reward these members are to provide priority services, a fast lane for banking deposits, zero-fee banking services, welcome bonus and gifting options for new members, and quite a lot of stuff. By doing this you can stay in customers’ good books and keep your brand trust and reliability alive. Another major benefit here is differentiating yourself from the rest of the competition and providing them with meaningful rewards that can contribute to improving branding.
Leading Brands Running on a successful model of Loyalty Software For Banks
Though we have a lot of brands who have already implemented strategic options to level up banking services, here are the top names you must be knowing and using.
Citi ThankYou powered by Citibank
Preferred Rewards powered by Bank of America
Go Far Rewards powered by Wells Fargo
The Bonvia Rewards Shop powered by Credit Suisse
Blue Rewards powered by Barclays
Reward Program powered by ICBC
Purchase Eraser powered by Capital One
Pay for A’s powered by Zions Bank
Surprisingly, according to a survey conducted in 2020, the loyalty market is tapped at $200 billion. The industry analysts estimate that some $100 billion worth of loyalty points go unused every year. The up-gradation of Fintech is phenomenal and have been looking for more and more advancements every year! Consumers are growing and so are the number of financial institutions offering just the similar services, to outgrow and outstanding amongst the tough competition, be ready to have the right loyalty solution facilitating the customers in providing nothing but the best rewards they have ever thought about.
Final Thoughts
Isn’t it obvious that your financial service loyalty program should be strong enough to fight against all odds of competition and the race of offering similar sorts of services in Fintech? In the far stretched loyalty environment, you must have the focus and dedication to providing exclusive loyalty programs and revamping your existing program with Novus Loyalty for better business outcomes.
