Reward programs, when delivered right, can be an extremely effective tool for boosting customer loyalty and sales. The retail and food and drink sectors have figured this out, and consumers are engaging their programs in droves.
But the financial services industry is still stumbling about somewhat aimlessly when it comes to reward programs, according to a new report from reward program service provider Collinson Latitude.
The report, “Taking Account: The consumer perspective on loyalty programs in financial services,” surveyed 4,000 consumers around the world and found that only 1 in 10 said that their financial services reward program provides excellent service.
Additionally, consumers ranked the FS industry low in comparison to service levels delivered by the retail, travel and food and drink sectors.
The researchers noted three main areas where financial services reward programs were struggling:
1. Choice of rewards: Just over 80% of respondents said programs would be better if they offered more rewards choices.
2. Access to rewards: Almost three-fourths (72%) said they wanted better access to reward programs online and an ability to redeem rewards easily (78%).
3. Service levels: Only one out of three (31%) said they received “great service” from their financial services reward program.
“What program managers and marketing professionals in the FS sector need to realize is that consumer expectations have changed; they expect to be rewarded for their custom 24 hours a day, 7 days a week, on the device of their choice,” said James Berry, e-Commerce Director at Collinson Latitude. “To genuinely improve customer satisfaction–and close the satisfaction gap between other industries–banks and credit providers need to start investing in more personalized reward programs that offer consumers greater choice and accessibility.”
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