Insight

Increasing Customer Loyalty in the Banking Industry

Post by
The Kard Team
Increasing Customer Loyalty in the Banking Industry

For a long time, the banking industry has been stuck in quicksand. Services are far too stagnant and transaction-centric, while other industries provide more meaningful experiences for their customers. Much of the banking industry has yet to capture the potential of merchant-funded rewards. A recent Deloitte Employee Survey found that only 19% of bank customers can be characterized as loyal to their bank which has been cut in half over the past ten years. It's clear that banks need strategies to enhance their value by engaging with customers on a deeper level through personalized interactions.

Reward Your Customer:

Customers are always looking for ways to make their money go further, and rewards programs are a proven way to incentivize customer loyalty and encourage card spend. Customers should be able to receive rewards from where they shop in any currency they prefer, be it points, cash, stock, or even crypto. Customers are more likely to swipe their cards at participating merchants with cashback offers, leading to a higher overall usage rate and average spend. Furthermore, a positive reward experience empowers customers to be advocates themselves, driving further spend through referrals and recommendations.

Create More Opportunities:

A crucial aspect in driving customer loyalty is presenting them with a simple and seamless user experience. Whether it is a geomap, "featured" page or list of nearby offers, customers must be made aware of the great offers available to them. This is also true for email and push campaigns that alert users of new offers that are ideally relevant to them. Customers are more likely to take advantage of offers if they have more opportunities to earn them—it all starts with awareness.

Ensure Customers Know About Their Rewards:

Awareness isn't just key in the build-up—it's also a critical element in the moments after a transaction. It begins with the 'surprise and delight' euphoria that comes with a rewards notification. Notifications of rewards have been proven to reinforce user loyalty and behavior, increasing the likelihood of continued spend. After an earned reward, the "user delight" associates the shopping experience with savings, leading to further loyalty and even excitement. Ultimately, customers come back to shop because they have a great experience—rewards can be a big part of that, as long as their earnings are effectively communicated.

Businesses are always trying to find ways to drive customer loyalty, but it's becoming more and more difficult in a newly customer-driven world. Fortunately for business owners everywhere, advancements in technology have opened up new opportunities regarding customer retainment. Customers these days prioritize a personalized experience more than anything else—they're getting pickier by the day. Kard offers customized services that build customer loyalty through a seamless reward experience.

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