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The Harley Davidson Effect: Motivating Customers to Become Your Brand provides banks, other financial institutions, and their vendors with the tools, guidance and data needed to achieve the avid consumer loyalty of Harley Davidson whose logo is incorporated into personal tattoos all over the world. The webinar is presented by Elizabeth Rowe, Director, Banking Advisory Service, along with Patricia Hewitt, Director, Debit Advisory Service.
Rewards programs have become a ubiquitous component of the consumer financial services industry, but what impact do they have on creating a sustainable, profitable relationship between the accountholder and the financial institution? The market is asking if these programs return sufficient income and account growth and retention value to justify their substantial investments. Its answer may lie in reframing the discussion from being program-specific to being brand-specific.
“Within their DDA and debit customer rewards/loyalty programs, banks are challenged to turn the notional concept of customer loyalty into a dynamic feature of the day-to-day life of the bank. Concurrently, they must galvanize loyalty and rewards programs to serve not just as retention tools, but to become the bank’s most import competitive weapon, “ states Elizabeth Rowe.
With consumer spending down and consumer credit contracting for the first time in decades, banks are motivated to build reward/loyalty programs around their DDA/debit products that will fundamentally change consumers’ investment in their banks.
FIs are enriching their range of reward offerings to appeal to specific consumer interests. Programs may offer low redemption thresholds or experiential rewards or rewards accrued to as donations to charities. These rewards may be tied to debit card activity or to the value and number of transactions moving through a customer’s DDA.
For FI customers, merchant funded discounts are enriching program values while creating a brand challenge: is it the bank or the merchant whose brand benefits most?
Measuring reward/loyalty program economics is critical to rationalizing program features and enhancements.
FIs must turn customers into bank advocates and must mesh the interests and identities of the bank, the brand and the consumer to withstand a competitive onslaught by new financial services providers and channels.