Going beyond the card to enhance member engagement

Across the financial industry, card-based rewards programs continue to emerge as institutions large and small compete for business and brand awareness. However, when it comes to nurturing member loyalty, savvy credit unions are moving past credit and debit transactions to blend a wide range of member touch points into their rewards offering.

“One of the newest trends in the industry is the movement toward ‘Relationship Rewards,’ which take a more holistic approach to inspiring member loyalty,” said Andrew Gates, CEO of Azigo, Inc. and Member Rewards by CO-OP consultant for CO-OP Financial Services. “The reality is this: If rewards work with a credit card to drive behavior, then they can work when a member applies for a loan, signs up for e-statements, opens a retirement account or uses online bill pay functions. If you can track it, you can reward it.”

Early Engagement Promotes Long-Term Loyalty

Gates notes that, across all industries, there is increasing recognition that early engagement with a consumer is a predominant factor in developing long-term loyalty. “When a consumer engages with a financial institution three times within the first 90 days of service – for any reason at all – the likelihood of that consumer becoming a long-term, engaged and profitable customer goes up significantly, by more than 30 percent in some cases,” he said. “So if the member is on the phone, visits an ATM, refers a friend or chats with you online, reward that member with points.”

continue reading »

More News