Even if the digital transformation at your financial institution is still ongoing, your loyalty rewards program can be a digital-first opportunity to reinforce the value of your organization in a way that matters to your customers. And, since rewards program communication is delivered through electronic means, it is a chance for your brand to connect with customers in a way that is inherently positive. Who doesn’t like to be reminded that they have points that they can redeem as a way to treat themselves?
Winning at credit card loyalty redemptions
Of course, some ways that people WANT to redeem points are not possible at this point. Because they can’t redeem points on airline fares, fancy hotels, amazing concerts, or fine dining, fewer people are engaging with their loyalty rewards programs. Some people will want to grow their stash of points for future travel. But for many others, it’s a matter of showing how their banked points can provide value to their immediate situation. For example, there’s a huge opportunity to position redemption categories such as online shopping and gift cards to take the place of travel and entertainment until those categories rebound.
But as with everything, there’s a right and a wrong way to promote your loyalty program. Maintaining customer loyalty during COVID-19 requires a laser-focus on the audience mindset — their needs, wants, and priorities. Show customers how your loyalty program can help them during these uncertain times. How can loyalty redemptions provide customers a much-needed diversion, smile, or meal they don’t have to cook.
Providing meaningful choice in loyalty rewards
With online shopping, there can be a choice paralysis — and this can certainly also relate to loyalty redemptions. The question is: Are your loyalty rewards presented in a way that’s meaningful to customers?
While access to a catalog of millions of products from major retailers and expansive gift card offerings is valuable, so is having the ability to promote those products in a way that deepens member engagement. To combat option overload, retailers constantly look to refresh the offerings and refine the shopping experience so that customers keep coming back.
Work with your loyalty rewards partner to deliver an alluring customer experience. By creating tailored promotions and custom storefronts, a financial institution can create fresh experiences that encourage frequent redemptions — and engagement with your brand.
