Inspire member loyalty with merchant-funded rewards
For today’s consumer, nothing says thank you like a great rewards program. And while the rewards industry has traditionally been shaped by the interests of global financial institutions, new merchant-funded solutions are hitting the market, making it easier than ever for credit unions to inspire member loyalty and keep their payment cards top of wallet.
“The demand for card-based rewards programs continues to grow throughout the financial industry,” said Andrew Gates, CEO for Azigo, Inc. and Member Rewards by CO-OP consultant for CO-OP Financial Services. “Within this space, merchant-funded rewards are by far the fastest growing segment, especially for credit unions. Today, even the smallest credit unions can offer members rewards from tens of thousands of top retailers, while also including exclusive offers from small, local merchants.”
Leveraging Your Local Cachet
According to Gates, a merchant-funded rewards program founded on the trend of “local love” plays squarely into a credit union’s strengths. “As a credit union, you are universally viewed as community-based and community serving,” he said. “And local merchant-funded rewards bring together amazing synergies across your community. In addition to strengthening your ties to local members and merchants, these rewards help your partnering businesses showcase their products and services, all while rewarding members for something they are already doing: shopping Main Street.”