Making Rewards Top-of-Mind Will Help Make Your Card Top-of-Wallet
Who doesn’t want cash back?
Apparently, simply offering appealing rewards for using the credit card you issue is not enough, according to one study.
Approximately three in 10 credit card holders (31 percent) have never redeemed the credit card rewards they’ve earned, according to a recent report from Bankrate.com.* That includes cash back, the most popular type of credit card reward, followed by airline tickets, according to the survey.
Welcome to my world.
As Vice President of Loyalty & Rewards Solutions here at First Data, I am responsible for not only leading development of rewards programs for large issuers, but figuring out how to help ensure their card holders will actual redeem these benefits. As I have found, it’s not just the quantity and quality of the rewards that matter, though those are definitely top priorities.
You need to wrap your program with an engagement and awareness strategy that makes sense.
Otherwise, why bother?
After two years of development, we recently launched the First Data Premier Loyalty Platform. Here’s what we learned:
Credit Card Rewards Engagement Strategies You Can Use
Develop a Communication Strategy: Increase the likelihood that cardholders will take advantage of offers by targeting them effectively and engaging them through their preferred communication channels. That’s why our platform features an “Engagement Accelerators” component.
Ensure Promotional Program Compatibility: Provide the ability to integrate rewards programs with other pricing, advertising and marketing strategies (i.e., Social Media campaigns, Store Visits, Ad Placements). And notify cardholders with offers when they’re most likely to be shopping, whether that’s online or in-store behavior.
Analyze Transactions to Understand Behavior: Analyze how cardholders use their cards so you know which offers to make and where and when to present them, and they may just use your card more often.
Educate Cardholders at Customer Touchpoints: Many of your cardholders may not know how to redeem their rewards. Make it easier for them to connect the dots between their points and their preferences. Then your institution will be the one rewarded with higher card usage.
Deliver Multi-Channel Messaging: Whether customers use their cards via desktop, tablet, mobile device, or in person at point-of-sale, you need to ensure your offers are clear and concise and can be delivered available via email, SMS text, in-app notifications and more. That’s why we invested in enabling our issuers to be able to touch their card holders at all the points that matter.
Implement a Reporting Solution: If you cannot measure it, it doesn’t exist. Our web-based analytics can help you manage your loyalty program more effectively, with an interactive dashboard and insights, providing invaluable intelligence to inform you communication strategy.
Over the past two years, First Data has made a substantial technology investment in its Global Financial Solutions (GFS) business line. REGISTER TODAY! Attend this complimentary one-hour webinar (exclusive, by-invite-only for clients, partners and invited guests) and hear directly from First Data GFS executive and product leadership so you can:
- Learn How Our Strategic Investments are Translating Into Powerful New Solutions
- Provide Your Retail Customer With More Payment Options With Point-of-Sale Loans
- Drive Higher Card Usage and Customer Loyalty With a New Kind of Rewards Program
- Give Customers Digital Tools They’ll Use, How, When and Where They Want
- Help Attract, Retain More Business Accounts With Better Commercial Card Solutions
- Deepen Customer Relationships With More Modern Personalized, Convenient Support
To help make your card more top-of-wallet, it needs to be top-of-mind, and to do that you need to adopt these types of strategies.
Want to learn how you can add loyalty and rewards solutions to drive customer satisfaction and generate revenue? Request a free briefing with one of our Loyalty & Rewards Specialists.
* Source Bankrate’s Money Pulse Survey, April 2017