LOYALTY BANKING
“ Banks that are loyaltyled hardwire the customer ’ s perspective into all of their important decisions : they elevate customer goals alongside shareholder returns ” KATRINA CUTHELL SENIOR PARTNER , BAIN & COMPANY
Katrina Cuthell
TITLE : SENIOR PARTNER COMPANY : BAIN & COMPANY INDUSTRY : MANAGEMENT CONSULTING LOCATION : AUSTRALIA
“ Combining loyalty rewards with a frictionless customer experience can be a way for brands to set themselves apart and drive lasting loyalty ,” he states , and these can easily be tailored to suit each bank ’ s objectives . However , Cuthell contends that loyalty should not just be restricted to a single programme but rather inform the overarching philosophy of the bank itself . “ Banks that are loyalty-led hardwire the customer ’ s perspective into all of their important decisions : they elevate customer goals alongside shareholder returns . Our research has demonstrated that doing so pays off with customers staying longer , buying more , and recommending the bank to friends , therefore achieving higher revenues .”
The danger of alienating future customers When it comes down to whether traditional banks are alienating millennial and Gen-Z customers , both Cuthell and Quinn are in agreement : yes . “ While consumers ’
Katrina Cuthell is a partner in Bain
& Company ' s Sydney office . She is a leader in Bain ' s Financial Services practice , with a focus on customer strategy , customer experience , loyalty and digital transformation . Cuthell also has significant experience in working across the payments value chain for both issuers and acquirers . Cuthell has more than 20 years of management consulting experience in both Australia and the UK .
willingness to try banking products with technology companies varies , it is consistently higher among younger consumers ,” explains Cuthell . “ In the UK , our 2019 research found that 65 % of 18 to 34 year-olds were open to banking with an established technology company , versus 34 % of consumers aged 55 and over .” The impact of the COVID-19 pandemic , which made physical branches unusable and digital platforms all but essential , has likely boosted these statistics across every demographic .