Customers want innovation in loyalty and rewards, but most credit unions are not prioritizing these programs. Beyond an ability to meet customer expectations, there are many reasons CUs should change this right now and give loyalty and rewards more attention.
With deep market saturation, continual launch of new programs and reinvention of existing programs, there is a high degree of churn and upward pressure on brands' credit card reward programs. However, these marketing communications create opportunities to build customer loyalty.
Successful co-branders understand the importance of constant testing in order to find effective ways to drive world spend. They also know that encouraging cardholders to use their cards beyond the brand not only increases card usage, but also boosts card loyalty. By linking world spend to incremental co-brand rewards, cardholders will be more likely to keep their co-brand cards top of wallet.
The #forthefun campaign gives Chase Freedom a personality boost while still focusing on its value prop: the juxtaposition of the card’s utility (“the card is for the essentials”) with the card’s end benefit (“the cash back is for the fun”).
What happens when you put two great things together? Reese’s Peanut Butter Cups? Peanut butter and jelly? Starsky and Hutch? Citi recently asked this question as part of a social media promotion to create awareness for its new Double Cash Card.
In our on-the-go, constantly connected, mobile world where so much is at our fingertips, consumers have a new expectation of wanting things quickly, easily and in the moment. This expectation is challenging industries to look for new opportunities to engage consumers, opportunities that will meet an increasingly impatient society head on. One area that American Express is exploring has the potential to change the face of the credit card rewards platform by bringing an “on-the-go” approach to the current burn structure.
Many issuers have small business payment products that include usage incentives to encourage spend on the cards. But we recently noticed that one major issuer is now offering incentives for business to accept credit cards from their customers.
A quick look at the product launch DM for Citi's Double Cash Back Card intrigues us, but also leaves us with some ambiguity. Here's what we like and what we think could be improved...
As credit card issuers grow their portfolios by concentrating their acquisition efforts on cardholders with higher spend, rewards are necessarily becoming a bigger part of the value proposition. And now, as part of monitoring market activities, CFPB announced that it will review the clarity and transparency of reward disclosures.
As rewards cards have become almost ubiquitous, financial service companies are increasingly focused on showing the value of these products. To do this, it’s not enough to simply tell cardholders how to earn points or miles, you need to show the end benefit that comes when those points are redeemed for something tangible. A current social promotion from Capital One does just that: “What’s on your #BucketList? If you can dream it, you could make it a reality with miles from the Capital One Venture Card."