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BizReport : Loyalty Marketing : May 18, 2017

Survey: Shoppers not taking loyalty to the bank

When it comes to loyalty programs, most bank customers don't feel rewarded. That's the key takeaway from new Collinson Group data which shows that only half of bank loyalty program members feel they're rewarded for their loyalty.

by Kristina Knight

"Traditional financial services models continue to evolve, with a focus on improved digital services and experiences, but a key area brands need to consider is how they recognize and reward existing customers, for example, through services such as real-time digital rewards or in-store redemptions at point of sale. Consumers are used to instant satisfaction and timely special offers, and those who can't deliver will be left behind. Other sectors such as travel and retail are demonstrating new ways of offering more personalized, timely and relevant rewards," said Lars Holmquist, Director at Collinson Group.

Researchers found most customers want loyalty programs that offer more rewards choices (77%) and that 82% feel the value of a program decreases if choices are not offered.

To combat this, Collinson's experts say banks need to begin offering loyalty club members the ability to combine their bank points with other rewards programs, and to give their customers a bigger selection of rewards.

"A key element in enabling this is providing customers with more ways to earn and redeem loyalty currency. Offering the opportunity to 'spend' points against non-financial products such as travel, leisure or more altruistic rewards is increasingly attractive to program members. The chance to redeem points in physical stores such as retailers and to split payment with loyalty points and cash all make programs more relevant and therefore more valuable to consumers," said Holmquist.

Tags: Collinson Group, loyalty marketing, loyalty marketing trends

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