Breaking Down Personalization in Banking Reward Programs
In this blog series, we will dive into personalization strategies employed in loyalty programs across industries. In this first installment, we’re covering some of banking’s most rewarding loyalty schemes.
Loyalty program adoption is on the rise, providing added value to the consumer through relevant outreach and personalized engagement. In fact, 79 percent of consumers claim that loyalty programs make them more likely to continue doing business with a brand and 73 percent of consumers are more likely to recommend a brand with solid rewards programs; however, only 2 in 10 members are very satisfied with the level of personalization they receive.
When it comes to banking, there is a delicate balance between a desire for face-to-face interactions and a desire for digitalization and convenience. 77 percent of consumers prefer to deal with a human customer service representative when handling larger transactions, yet 40 percent of millennials do not visit brick-and-mortar banks. Due to these varying preferences, it is integral for banks to customize outreach to each consumer’s specific needs and wants. Today, leading banks are doing so through advanced customer loyalty programs:
1 | Wells Fargo
The Rewards: Wells Fargo offers a variety of ways to earn and spend points with the Go Far® Rewards program, which opens automatically with a reward-based credit card so customers can start earning points from the get-go.
With the first $1,000 spent at selected retail stores, users earn a $200 cash reward bonus that can be redeemed for special events or once-in-a-lifetime experiences. With AI, Wells Fargo can understand the spending patterns of each customer and serve up relevant promotions based on the customer’s likes and preferences. For instance, if a customer typically uses her card to book flights and accommodations, the bank can send the customer a push-notification via their loyalty app regarding a partnership with a luxury hotel chain that she can use her bonus points to cover.
2 | Chase
The Rewards: Not only does Chase bank offer a standard rewards program, but it also offers the only reloadable prepaid card that allows customers to rack up Starbucks “Stars” points on everyday purchases.
Through the rewards program, Chase allows customers to simply load money onto their Starbucks® Rewards Visa®, and pay for purchases virtually anywhere to earn Star points. When loyalty app users have location services enabled, Chase can elevate the customer journey by sending a push notification to a customer’s app when he penetrates a Starbuck’s geofence, highlighting the amount of Star points he has earned.
3 | Bank of America
When customers pay with an eligible Bank of America credit or debit card, they can earn coins from partner organizations for everyday purchases that they can redeem for cashback. Further still, with Bank of America’s AI-powered virtual financial assistant Erica, the bank can push customers an in-session message related to app activity—ranging from checking balances to sending bill payment reminders.
When it comes to banking, loyalty programs are an essential tool to encourage customer engagement. Through ZineOne’s AI-powered Intelligent Customer Engagement (ICE) platform, we’re enabling today’s financial institutions to connect customers with relevant and timely rewards and offers, and driving next-best actions based on customer historical behavior. Contact a ZineOne expert to learn more about how you can leverage intelligence in your banking rewards program.