New Bank Rewards Programs Improve Customer Retention

Credit card loyalty programs are very popular with financial institutions, much like retailer loyalty programs. But banks are looking for new ways to retain customers and are expanding their rewards programs into other banking relationships, tied together by the debit card. Flexible points programs designed to build stickier relationships and drive customers toward new product and service purchases are one solution that banks are implementing. Three keys to success include concrete information that is easy to understand, clear value that is easy to redeem, and goal-orientation toward more rewards. Most importantly, don't let these programs divert attention and resources from the ultimate customer loyalty program — relationship-based pricing (RBP).