(Written for RAZR Rewards)
Surely you've seen the trends related to your loyalty program. Credit card spending is down. Redemptions are down. But what can you do? The world is in crisis. Is making sure that your customers are redeeming their loyalty points really a priority? In a word: Yes.
Read on to learn why loyalty point redemptions are essential for a robust relationship with your members and how custom storefronts can improve engagement.
Why your loyalty program can't wait
Engaged customers are the foundation of a successful financial institution. With COVID-19 affecting the traditional ways that your financial institution builds customer loyalty and relationships, it's never been more critical to double-down in areas that you can control.
Waiting for this to blow over is not an option — not when nontraditional banking options are threatening the status quo and making it even more important that financial institutions aggressively pursue transformation with mobile and digital-first strategies at its core.
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.
A full 70% of consumers say the loyalty rewards offered by financial services providers have a "major impact" on purchasing choices. 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. Loyalty redemption can 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.
Using online custom storefronts to engage consumers in loyalty redemptions
While there is no one-size-fits-all approach to loyalty marketing, we've found that custom storefronts focused on key categories are effective in driving loyalty redemptions during the pandemic. Adapting storefronts and promotions based on redemptions can help you finely tune the customer experience for the best level of engagement.
Boredom Busters: crafts, puzzles, video game consoles, and top trending games
Health and Wellness: yoga mats, cooking equipment, and books
Work at Home Gear: noise-canceling headphones and webcams
Delivery Services: food delivery services (e.g., GrubHub) and shopping services (e.g., Instacart)
Engage with RAZR Marketing for better customer engagement
Engaging with your customers can't wait. To remain top-of-mind for your customers — and their preferred banking partner — you need to provide value in a digital-only world. A robust loyalty rewards program can help you do that.
With a consumer engagement platform like RAZR Relationship Rewards, it's easy for financial institutions to create and update custom storefronts. And, with daily updates on metrics such as redemptions by category, programs, and incentive levels, financial institutions can ensure that promotions are always on target.
Using RAZR Relationship Rewards allows you to incentivize behaviors that not only earn your customers points but helps you retain their loyalty, especially in these times. Request a demo to learn more.