Customer Retention through Closed Group Reward Programs for Banks
Have you ever dreamed to be part of your customers’ everyday decision making process? Such that, before every decision, they make they would think about you first. ‘Closed Group Reward Portals’ enable banks to be a part of customers’ decision-making process for each of their needs. This continuous engagement can be converted to a strategy which involves repeated use of banking products/services. This ingenious concept can help banks step out of its shoes of being a mere financial partner to a friend who can be counted on, in their day to day lives by giving them exclusive rewards and offers to meet their everyday needs.
The platform facilitates engagement between Bank, Customer and Merchants for their mutual benefits. Closed Group Reward Portals are relevant in today’s scenario of extreme competition because these portals are especially helpful in customer retention. The commercial world has realized that customer retention is more viable and cost-effective when compared to customer acquisition.
All that needs to be done is to utilize the trust customers have on their banks trust in a way that is beneficial for both the bank and its customers. Ensure that first-time customers are offered something to make them come back for more. And once they do come back, offer them something that makes them a lifetime fan.
Implementing such a strategy is not too complicated. Banks already have a large database of its customers. All they need to do is to analyze this data, interpret it to understand what their customers’ want and then device strategies to provide the same. Take a quick look into some of the prerequisites of providing rewards to customers:
- Know your customer: Utilize the data you already have about your customers to understand their buying behaviour & preferences. This will help in providing them what they need.
- Personalize deals: Once you know the preferences, offer them exactly what they need. They will find it too hard to say “no”.
- Location-based deals: Location-based deals are always a big hit. Providing exclusive access great offers with accessible vicinity will definitely have a lot of takers.
- In-premise deals using beacon technology: These gadgets not only help you make the best of the available technology, they also capture your customers’ interest. Sending push notifications to their smart handheld devices are extremely useful in capturing their instant attention when they enter the bank or are within the bank’s premises.
Here are some proven reward strategies in the banking industry:
- Target the right audience: Creating niche reward deals will work only if they are targeted at the right audience. Data analysis about the spending pattern of customers can help analyze which deals will work with which group of audience.
- Offer the right deals: Once the customer preferences are known, it is important to ensure that every deal meets those preferences/ needs of customers. For example, if more of your customers are seen to be spending on travelling, offering deals for ticket booking, hotel booking, etc will be an instant hit. Also, generic deals like utility bill payment can cater to all sects of your customers.
- Go Viral: By allowing users to purchase gift cards and coupons which they can provide to non-members, banks can reach out to a wider network through their customers. Furthermore, allowing the users to share their loyalty points with their friends and family through social media can help the platform go viral.
- Create urgency: Offer personalized deals on popular products and services with achievable points. When you offer something they like and tell them it is only available for a limited time, they will surely rush to grab it. The key here is to ensure that they feel that the deals are achievable with their loyalty points.
- Offer exclusive privilege & convenience: Make customers experience the privilege of being your bank’s customer by offering exclusivity. Ensure that they are allowed to choose the time of deal redemption (slot booking for spa appointments/ dinner reservation etc) as per their convenience. It is these little things that will ensure that customers are satisfied and will come back for more.
Closed reward portals help you generate a sustainable and mutually beneficial relationship with your customers. The portal successfully creates customer exit barriers which grow over time. To execute this portal effectively you need a solution provider who has the experience and technology in this industry.