What makes for a ‘sticky’ credit card rewards program?
An ideal credit card rewards program is a “sticky” one. Stickiness suggests that members use the rewards program often, consistently find value in their participation, and keep it top of mind. Cardholders are less likely to be won over by a competitor offering a moderately better rate because the benefits and experiences they receive are so meaningful to them. Here’s what it takes for credit unions to create a rewards program of that caliber.
Credit unions have long been known for their commitment to customer service. But in an increasingly competitive financial services landscape — where providers ranging from big banks to fintechs are focused on delivering customer value — credit unions must find innovative ways to retain their members and recruit new ones.
A credit card rewards program is one option. Loyalty marketing isn’t a novel concept; many credit unions already offer their members extras like gift cards or discounts on car rentals. However, fewer of them offer members a rewards program with features like travel booking that encourage repeat interaction with the credit union.
Here are five ways credit unions can use a credit card rewards program to boost member satisfaction.
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