Writing in Global Banking and Finance Review, Gabi Kool, President of LoyLogic, says that banks should take a fresh look at their loyalty programs given high inflation, low business, and consumer confidence, and fresh new competition from neobanks and fintechs.
He suggests there’s an opportunity to win the battle for customers “through new-age, technology and data-empowered, loyalty programs which break the mold.”
He sees a range of innovative new loyalty solutions emerging that “can allow banks to demonstrate a genuine understanding of their customers’ financial concerns and priorities, supporting and rewarding positive financial choices that suit their individual situation.”
He continues: “Using data, banks can move beyond the one-size-fits-all approach and ensure that the rewards and incentives they offer will truly support and add value to the lives of their customers at whatever their stage of life – whether they’re a student, buying a house, or planning for retirement.”
He recommends “moving away from a focus purely on higher-tier customers, and instead concentrating on rewarding the un-rewarded, or the under-rewarded.” He believes these programs can not only drive retention but provide an effective means of bringing the unbanked into the market.
He concludes that properly designed loyalty programs have so much impact, it’s time to bring their benefits to the boardroom as a means of supporting a wider business strategy.