When choosing a new bank or credit card, consumers are more influenced by the rewards on offer than they are by customer reviews, according to new research conducted by Collinson Latitude.
The report, ‘Taking Account: The consumer perspective on loyalty programs in financial services’ (.pdf), is based on the findings of a survey of 4,000 consumers from around the globe. It found that nearly two-thirds (63%) of consumers are influenced by the rewards being offered by financial services organizations, not far off the 69% who said brand reputation swayed their decision making process. Rewards also ranked higher than customer reviews (58%).
However, the research also revealed that bank and credit card reward programs were falling short of consumer expectations and were rated poorly. Consumers rated bank and credit card service levels lower than for retail, food and drink and retail sectors. Three key areas in which financial services reward programs were falling short were identified. Eighty-two percent of respondents said financial services reward programs could be improved by offering more choice. Nearly three-quarters wanted better access to rewards online and easier ways to redeem rewards (78%). Finally, just 31% said they received ‘great service’ from their rewards 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 UK-based 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.”
To this end, the report suggests four top tips to improve a loyalty program:
1. Make rewards more attainable.
2. Offer choice and variety.
3. Make rewards redeemable online.
4. Talking sense.