As cardholder spending preferences have drastically changed during the COVID-19 pandemic, flexibility is more important than ever to ensure your credit union’s loyalty programs are evolving with your members’ needs. With many saving instead of spending, while traveling and dining less frequently, providing expanded rewards opportunities to make members’ everyday lives easier is key for setting your credit union apart – both in these uncertain times and in the future.
A recent Javelin Strategy & Research report, The Evolution of Loyalty and Rewards, shows that while some rewards programs are less significant during economic downturns, cash back remains relevant and important to cardholders during financial hardships. Historically, some of the most popular types of programs have been centered on travel, dining out, and spending—all things that are suffering from the impact of COVID-19.
It is important to keep in mind that consumer spending scenarios will continue to change through the remainder of 2020, which translates into shifts in rewards preferences under different spend categories – which is why giving your members more choices in their reward redemptions will help maximize their earning potential while strengthening brand loyalty for your credit union.continue reading »