Customer loyalty is priceless.
As much effort it takes to gain new customers, it takes more effort to retain and make them loyal to the services. For any enterprise, it is more beneficial to increase their revenue through existing customers since it leads to a lower investment than that of acquiring new customers.
For banks and credit unions, loyal customers are extremely crucial to the success of an institution since they can grow the businesses faster and more effectively than sales and marketing techniques. Loyalty rewards program technologies aim at creating satisfied customers by rewarding them with discounts, gifts or other exclusive benefits. Most of them now also exist in the mobile sphere in the form of loyalty reward apps. These technologies work best when they are used in coordination with each other.
Data and Artificial intelligence together can provide flexible technology solutions for customer retention. With unprecedented access to data, enterprises can work on retaining their customers through CRM and engagement tools.
Here are three important statistics to show how these tools and technologies can benefit a bank or a credit union.
- According to Rosetta, customers who are engaged buy 90% more frequently and spend 60% more per transaction.
- According to Accenture, 81 % of customers admit that it is difficult to work with a company that does not make it easy to do business with them.
- Existing customers spend 67% more than new customers, and customer loyalty programs are able to cover for themselves.
Listed below are the top reward and retention technologies which can provide the best solutions for banks and credit unions. They can be segmented into discount and reward technologies.
Reward Technologies
Loyalty programs that leverage technology and aim to influence customer purchasing decisions by offering rewards and reward points to customers who make frequent purchases or avail the best deals
1. CO-OP Financial Services
Provides, convenient, secure, connected and personalized experience while using digital credit union platforms. For credit unions, it ensures that the relationships with members are strengthened , thus driving growth.
Features
- Springboard and Mycard Info enhancements can help file missing requests and revising disputed codes.
- Automatic billing updater.
- Provision plus supporter for new tokens.
- Balance consolidation and transfers.
- Mobile banking
- Biometric security and custom settings.
- New P2P enhancements facilitating Realpay payments.
- Multichannel services with fraud mitigation facilities.
2. Access rewards
A network of loyalty discount programs delivering exclusive savings and are completely customized to the needs of the customers. From national brands to local retailers, it adds value to the daily shopping of the customers and increases the relevancy of their partner’s brand. Products include - Discount programs, Mobile Coupons, Loyalty programs, Membership clubs and benefits, Credit card loyalty programs, upsell and cross-sell products and customer incentive programs.
Features
- Custom- branded and designed loyalty website.
- Downloadable mobile coupon application.
- Provides a custom-loyalty discount card.
- Designs customer retention strategy for partners.
- Personalized and timely deals for customers.
- Fundraisers for charitable organizations.
3. Azigo
A white label provider of zero friction merchant-funded loyalty experiences. Membership and retail partners of Azigo can earn customer loyalty through frictionless experiences in services like discovering, shopping, purchasing, tracking, communicating, etc.
Features-
- Customers can earn cash, donations, points, etc by shopping online and in-store through its interface.
- Reports and API features ensure that partners are always up to date and informed, and allow earnings to be shown on other interfaces.
- Cashback rewards when the customer makes purchases at participating retailers.
- SaaS-based function mainly for middle-sized financial institutions.
4. Breakaway Loyalty Rewards
Breakaway Loyalty creates custom incentive programs in order to motivate new and existing customers, generate loyalty and in turn, build revenue. The rewards are self-sustaining and create profitable portfolios for clients.
Features -
- Credit card points programmes which utilize real-time processors.
- Innovative and cost-conscious credit/debit redemption grids.
- Providing market strategies and programs to help partners retain customers and grow portfolios.
- Facility of the online program to view and redeem points online.
- Quarterly promotions through proactive customer opportunity centers.
- Improved customer experiences with reduced liability through point reduction programs.
- Increased performance in card base through the use of portfolio segmentation and analysis.
5. FIS Loyalty program
Offers solutions to keep customers both loyal and satisfied through innovative products and discounted rates. FIS loyalty programs provide turnkey and customized loyalty programs and create winning strategies and strategic guidelines for customer retention for their partners. Presently, it is the leading technology for financial services providers.
Features
- Powerful analytics to understand consumer trends and behaviors.
- Features to outsource database scoring, response tracking and account setups to FIS.
- FIS Pinpoint offers make available rewards directly into customer’s bank accounts
- Community involvement and charitable activities.
- Open and quality banking APIs which ensure security and efficiency.
- Scorecard rewards is a leading loyalty program of FIS which works for both debit and credit solutions and results in an increase in transaction volume and new cardholders.
- Members can earn points for everyday purchases which are redeemable for brand-name merchandise and travel.
6. Novae
For small- to- medium banks Novae platform helps them to build and maintain a loyalty platform which aids them in attracting and retaining cardholders. Novae platform offers a white-label solution which offers unique rewards and customer care features that can adapt to the loyalty strategies of the bank or any other financial institution as their own.
Features
- All digital and mobile first loyalty platform.
- It is possible for customers to access it online, in-store or while traveling and from mobile or desktop.
- It is a universal and cross-border platform.
- Consumers can redeem points at any time.
- In partnership with Visa, the loyalty platform is customized to be used by visa issuing member banks as Visa Loyalty Solutions.
- Secure digital payment platform that helps to combine credit, debit cards, and reward points into a single purchase.
- Multiple interactive customer channel support channels such as videos, chatbots, etc.
7. Jack Henry and Associates
Engaging a loyalty program which provides unique experiences and personalized rewards to attract and retain customers. It ensures that the cardholders earn meaningful benefits and merchant-funded reward options.
Features -
- The cruise net platform works best for small and medium-sized credit unions and also uses the latest .net technology.
- JHA Outlink processing services can enable and offer to outsource of Cruise net.
- Episys works best for larger credit unions and it is highly customizable.
- Online and mobile based applications.
- Relationship rewards are beyond traditional card points.
Discount portals
Loyalty programs that focus on increasing the customer base and revenue by offering discounts on products and services. Special prices and deals are implemented and offered to customers seeking to achieve various objectives.
8. Augeo
Augeo provides loyalty, engagement and incentive solutions by designing personalized experiences, data analytics, and insights and engagement platforms. Some of the intermediate products are - Employee recognition and rewards, membership benefits, and card-linking experiences.
Features -
- Discounted gift cards in addition to local and national merchant networks
- SSA6 16 Certified and level 1 compliant which secures data with real-time backup.
- B2B and B2C programs are designed to elevate engagement. The platform is customizable.
- Points awarded not only for transactional data but also from online, in-store and self-reported sources.
- Omnichannel marketing and communications.
9. Lovemycreditunion.org
Exclusive for credit union members, it helps them to save money on products and services they use every day. The only criteria for customers to receive loyalty rewards and discounts are that they need to be a member of the partnered credit union. The four category products are - Sprint, TurboTax, Trustage, and ADT.
Features -
- Have partnered with Celltrust to avail mobile marketing solutions.
- Easy to use and available in the application format.
- Love to shop discount program offers cash back when the members buy from over 1500 online retailers.
- Sprint discount offers 100$ cash reward for every new line members switch.
- Turbotax discount offers 15$ worth of savings on Turbotax products.
- ADT offers 100$ gift card to avail the newest ADT services and an exclusive smoke communicator.
- Trustage offers savings on car insurance with its TruStage auto and home insurance program.
- New exclusive deals everyday.
CONCLUSION
These loyalty rewards and discount portals act as retention technologies which aim at creating brand influencers by retaining existing customers, increasing the lifetime value of these customers and setting you apart from the competition. A new approach that is being implemented by financial institutions is the one of providing meaningful and attainable experiences which the customers will remember rather than just focusing on financial benefits. A program which is aimed at delivering positive experience through this technique will influence behavior. Relevant program metrics for success need to be identified for efficient implementation.
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