In today’s disruptive world, it’s more important than ever to engage with your cardholders. Community financial institutions are flooded with pitches from solution providers claiming to boost revenue while making your institution more attractive to consumers, but not all can clearly demonstrate their value.
Rewards programs that are actually rewarding for you and your cardholders should do the following:
Offer Unique Rewards
Since rewards programs are now a necessity for any financial institution looking to compete in today’s economy, it’s important to find one that offers rewards that stand out.
Consumers can join any rewards program for discounts or coupons at national retailers. Why not cement your institution’s foothold in the community by offering local rewards? You’ll create new commercial opportunities while giving your cardholders the rewards they crave.
Kill the Fine Print
Redeeming for rewards shouldn’t be rocket science. Rewards programs that rely on fine print and expiration dates to discourage consumers from redeeming their points in order to show profit don’t work. In fact, unused or latent rewards programs are more expensive because you’re not seeing the highest return on your investment.
Ensure your provider actively promotes participation in your rewards program—both you and your cardholders will benefit.
Boost Your Revenue
According to a recent study conducted by TMG and IQR Consulting, rewards cards are 79% more profitable than non-rewards cards. In fact, cardholders who redeemed their points spent nearly 186% more than cardholders who didn’t redeem.
A good rewards program provides your cardholders with the rewards they want. A great rewards program encourages your cardholders to redeem for rewards while helping your institution realize the highest ROI possible.
Skeptical that a rewards program can result in a positive ROI?
Buzz Points® commissioned Forrester Consulting to conduct a Total Economic ImpactTM study to examine the potential return on investment that community financial instructions may realize by utilizing its program to encourage local purchases and increase use of debit and credit cards. The study concluded that over three years, Buzz Points partners realize 139% ROI and a total payback time-frame of only 4.1 months.
Download the full study for free here.