Financial Services Solutions

Earn Huge Dividends Investing in Customer Loyalty

The financial services industry has lit a fire under points-based customer loyalty programs. In an industry where financial institutions have become largely indistinguishable from their competition, the importance of the customer experience is growing as a key differentiator. Research has determined that the major differentiator in the customer experience is the ability to reward a customer's ongoing loyalty, commitment and product usage.

With the implementation of a customer loyalty points program, customers can earn points for actions such as:

• Utilizing a bank's services
• Making a mortgage payment on time
• Applying for a home-equity loan
• Referring a friend

Only 44% of customers utilize their bank for more than one service. With the introduction of a points-based customer loyalty program, financial institutions can promote increasing product and service purchases.

Financial institutions realize it is all about creating a "sticky" environment for customers. The more services and products a customer utilizes, the more difficult it is for a customer to switch to a competitor. By rewarding customers for increasing their product usage, financial institutions are creating a "sticky" environment, ensuring customer retention and long-term commitment.

The flexible online rewards platform available through Incentive Logic allows the financial institution to market to customers through the rewards website. Advertisements for new bank products and services, loan rates, as well as other industry specific information can be placed directly on the rewards website for easy viewing by customers. Customers can automatically link to a loan application or to an area to sign up for a new service.