Is Your Loyalty Program Optimized for Members?
From box tops and frequent flier miles to punch cards and redeemable points, reward programs designed to foster consumer loyalty have evolved to reflect changing consumer behaviors and preferences.
The redemption habits of today’s cardholders underscore a growing preference for cash rewards or an equivalent, such as gift cards. Recently released statistics from creditcards.com shows cash rewards reign supreme, even above other popular perks, such as airline miles. But 2019 statistics showed a 22% non-redemption rate, which means that roughly one-fifth of cardholders are not engaging with companies’ loyalty programs.
This is where Strategic Link partner, FIS, can help. As the world’s largest global provider dedicated to financial technology solutions, FIS understands that credit union members expect three things from loyalty programs: personalization, immediacy, and ease of redemption.
Credit unions are well-positioned to provide a superior redemption experience that’s simple, provides immediate gratification, and takes the burden of redemption off the backs of cardholders. Connecting with consumers on their terms requires a new loyalty program model – one that integrates the company’s program into consumers’ regular routines and meets their expectations for quick and easy redemption.
FIS Premium Payback is a great example of this new model.
The program frequently engages credit union members by presenting them with the ability to enable loyalty point redemption at point of sale (POS). Cardholders with enough points to qualify for redemption can opt to use their rollback offer when they present their payment card or digital device at POS.
The redemption rate for Premium Payback is four times greater than coupon redemption, and 50% of those enrolled redeemed their points two or more times over the course of 12 months. Ninety percent of users rated the experience as “good” or “very good,” and spending increased by 36% after program implementation.
By intelligently integrating loyalty points into the regular transaction process, credit unions can provide cardholders with the solutions they want and also differentiate themselves by keeping their loyalty program front and center in their members’ minds.
Credit unions can learn more about FIS Premium Payback by joining the Strategic Link partner’s informative webinar, Loyalty – Evolve Quickly, Generate Revenue, and Grow Faster, on March 17, 11 a.m. to noon PDT, noon to 1 p.m. MDT. Click here to register.