Credit unions aiming to boost income, move their debit and credit cards to the top of members’ wallets, enhance cross-selling and build relationships with small businesses in their communities may want to consider how their rewards program can support those efforts.
A rewards program with flexible design options can be tailored to offer incentives to members to use their cards more frequently, especially with participating local merchants, and to sign on for other products and services, from auto loans to e-statements.
The strategies employed by these financial cooperatives, which partner with Buzz Points, demonstrate a few examples:
- UMassFive College Federal Credit Union, Hadley, Mass., offers cardholders a half-point per dollar spent on any debit transaction, but a full point per dollar shopping at local participating merchants. The $448 million CU also sponsors regular “Pot-O-Points” promotions offering additional points for increasing debit card usage. The credit union’s monthly interchange income increased from $79,410 in September 2014 to $98,333 in May 2016.
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