LOYALTY BANKING
Clearly , the advent of a more digital techfocused milieu is having a significant impact on customer loyalty . Continuing to offer the same experience is a strategy guaranteed to lose traditional banks business , particularly when newcomers can bring a price and technical advantage to the fight . For now , incumbents are on the back foot and essentially playing catch-up with the competition .
The meaning of ‘ loyalty-led ’ banking To truly turn the tide , banks will need to match the status quo and then push further to emerge as leaders . For Quinn , this means providing customised offerings capable of meeting individual needs and preferences . “ In order to be truly ‘ loyalty-led ’, loyalBe suggests that banks employ tools like continued recognition , which is the feeling of being individually acknowledged and valued as a customer and rewarded for investment in the brand over time .”
# 1 Establishing a digital presence
# 2 Deploying online tools to incentivise custom retention
# 3 Lack of customer relevance in available loyalty plans
The phenomenon of incentivising the onboarding of new customers to the detriment of maintaining existing customers is well known and certainly not constrained only to banking . Nonetheless , ensuring that this disparity is healed should be of prime importance ; Quinn cites reports from Bond and Citi that found 71 % of customers considered loyalty programmes meaningful and 86 % felt more compelled to be brand loyal while participating in such schemes .
60 July 2021