As digital innovation continues to revolutionize the banking industry, the way customers are being treated is changing. With the emergence of fintech, the banking industry has been challenged by new ways of thinking about the experience and loyalty of bank customers/account holders. To stay ahead of the curve, banks must adapt or risk losing market share to their competitors who can provide better services at lower costs.
According to Forrester, the pandemic has given rise to a whole new category of customers. These new customers are more emotional, having gone through a lot. Their loyalty can be earned by being more empathetic and with a personalized effort from brands, and businesses, including their banks or financial institutions too.
Please discover in our article the best strategies for bank loyalty programs.
A loyalty program is a customer retention strategy that encourages customers to continue buying from your brand rather than competitors. Eventually, the point of loyalty programs is to reward loyal customers who repeatedly interact with your brands such as purchasing frequently or multiple repeat purchases or even for just using products and services for extensive periods by giving them extra rewards—such as early access to additional discounts, membership programs, referral programs, 24/7 customer service-based program and more.
The more a customer buy or engage with your brand, the more rewards they earn. You can also offer incentives for customers without repeat transactions (like membership programs of signing up for email newsletters and getting early access to all the latest offers).
Online banking reward programs are designed to encourage bank customers to use digital banking services and reward them for their loyalty. Banks benefit from the lower physical transactions, delivery, and administrative costs, while customers enjoy easy access to their accounts and tools that make budgeting and managing their money easier. In a world where you can pay bills online or make deposits in seconds through your smartphone, why would you go back to the old way of doing things? Online banking reward programs provide incentives for customers who choose to go digital.
At Giift, our maximum customer base consists of fintech/financial services clients, banking clients, and so on. So, if we take an example of loyalty programs that we do for our banking clients who in turn, cater to their loyal account holders. These bank rewards programs facilitate them to reward their loyal customers for having a bank account with them or having credit cards/debit cards with them or with their bank and so on. We can also equip the bank rewards programs with gamification features where the bank customers collect points with multiple interactions and are able to earn rewards by redeeming their reward points.
There are multiple different types of loyalty programs for clients in the banking industries which might we add, at Giift, is our forte considering that for over a decade now, we’ve catered to the most reputed names in the banking world. Online banking reward programs typically have three components. A point system that rewards customers for using certain features of their account or for depositing or withdrawing money from the bank’s ATM network. Cash back bonuses/cash rewards can be redeemed for goods or services from the bank’s partner companies. Loyalty rewards are based on your stay with a particular bank or financial institution.
Here are some strategies to implement for a successful banking loyalty rewards program:
These reward programs provide a platform where points, rewards, miles, and gift cards can be earned, burned, and exchanged. They encourage customers to interact and engage with the digital banking features to not only just earn points from transactions but to also earn points from sharing on social media, leaving reviews, through gamification, and so on. At the risk of sounding braggy, our points accrual and customer management system, GiiftLBMS is the one-stop SaaS-based loyalty solution for your brand. You could choose to believe otherwise but our esteemed clients also speak for us, and we assure you, give our loyalty experts a chance and you will be a fan too.
When you think of loyalty programs in the banking industry, you probably think of tiered programs. But what exactly is a tiered loyalty program? And why do banks use them?
Well, tiered customer loyalty programs are a type of membership program where customers get different benefits depending on their rank. Banks can often rank membership into groups depending on specific metrics like monthly transactions or total engagement which helps the banks to segment their customers and understand their preferences better and do target loyalty campaigns for a more personalized experience.
Paid loyalty programs in other membership programs are a fantastic way to build customer value, and they are also a terrific way to increase conversion rates. They offer benefits immediately for a fee, and in the case of recurring fees, you can provide customers with ongoing value.
If you are looking for a way to give your customers more value, paid loyalty programs are worth considering. Studies show that customers who participate in a paid loyalty program are 62% more likely to spend more on the brand than those who don’t.
Value-based loyalty programs in banks are not just about rewarding customers. Instead, they are about connecting with them on a deeper level and creating a more meaningful relationship between customers and banks.
Instead of rewarding customers, these programs offer multiple options for different charities to choose from or have one that truly aligns with your customers’ values.
With this type of program, it is not just about giving money—it is also about making an impact on society.
Reading through our article, you will agree with us that with the rise of innovative offerings, effective loyalty solutions go a long way in building customer lifetime value in the banking sector. At Giift, our banking loyalty solutions allow you to customize your bank reward programs and engage your customers in a loyalty exchange like never before. We believe that the best solution is the one that is tailor-made for your business. So, get in touch with our loyalty experts to find the right loyalty solution for you!