Loyalty marketing for financial brands can be a tricky thing. Banks are inherently distrusted by one set of consumers, typically younger generations who view them as self-serving and unsupportive of their goals. In contrast, fintechs are given the side-eye by older generations who value longevity and a track record over digitized, mobile-first interactions.

Both sets of consumers want a financial brand experience driven by transparency and a clear motive to gratify their needs and wants. Whether they are traditional banking institutions or budding fintechs just getting a foothold, brands that achieve this will be able to drive top-line growth and lasting, active, and engaged brand loyalty.

Properly done, financial brand loyalty marketing boosts earnings, increases sales, and enables long-term expansion. A well-planned and implemented loyalty and rewards program can assist you in retaining existing customers, attracting new customers, and growing revenues. This happens through last-mile engagements, which can rise by 12 times with a modern and tech-driven program.

Brand Stickiness vs. Brand Loyalty

Any brand that caters effectively to the needs of its customers enjoys some level of free customer stickiness and retention because switching brands — especially financial brands — can be a hassle.

However, most brands take this free element and don’t build on it to lasting advantage. For example, banks have incredibly high customer stickiness, but very few implement effective customer engagement marketing to transform that stickiness into true brand loyalty.

On the other hand, fintechs may be knocking it out of the park when it comes to customer engagement, but haven’t sufficiently aligned their messaging and brand loyalty marketing to lock in their more fickle customers and make them truly stick in the face of an ever-expanding market of options.

Instant Gratification in Your Bank Loyalty Program

Today’s banking customer expects and demands instant gratification at each touchpoint. You can leverage these opportunities by providing instant gratification, so that interacting with your financial brand becomes a normalized part of your customer’s lifestyle.

The rewards offered at these interactions should be flexible to provide customer choice and match each consumer with a personalized bonus. In addition, these instant rewards should be visible to other members of the person’s social circle, keeping the brand top of mind and providing a positive incentive to come back and earn more.

Account opening

Customers want instant access to benefits, from a ready-to-use ATM, debit, or credit card to loan application and line of credit options.

• Potential reward: An instant large reward (a one-time reward for each account opened, the scale of which may vary based on the opening deposit amount.)

Account balance checks

Customers expect instant information without jumping through hoops to access their accounts and repeatedly prove who they are.

• Potential reward: A token or bonus reward if over a certain balance (a recurring reward, given every day checked, the amount may vary based on target balance tiers.)

Account transactions

Customers desire the ability to complete a deposit, transfer, or bill payment instantly and receive real-time confirmations and notifications.

• Potential reward: An instant reward given when a predetermined milestone is hit (a recurring reward, given every time a new milestone is achieved, the amount may vary based on milestone type and size.)

Set up direct deposit

Customers want to take advantage of time-saving benefits and receive their reward (typically a discount on bank fees or a cash bonus) right away without waiting for 30, 90 or 120 days.

• Potential reward: An instant reward is given when a new direct deposit is set up (a one-time reward for each direct deposit, the size of which may vary based on the average deposit amount.)

Check or cash deposits

Customers demand instant availability of funds without waiting for them to clear. This includes funds from regularly scheduled, automated deposits that fall on weekends or holidays.

• Potential reward: A token or bonus reward every time a deposit over a certain amount is made (a recurring reward, the amount may vary based on the amount of the deposit)

Referrals

Customers want immediate rewards for “helping their brand out” by referring other people who become customers as part of a customer loyalty scheme.

• Potential reward: A large instant reward (a one-time reward for each successful referral, the amount may vary based on the type of account opened or amount of initial deposit.)

These interactions provide the ability to add touchpoints to an ongoing customer journey and provide instant gratification as part of a customer rewards and brand loyalty program.

Constant Gratification in Brand Loyalty Marketing

Don’t drop the ball. You have your customers’ attention, and the way to keep it is through constant, consistent reiteration.

The customer journey is ongoing

You can’t depend on “set and forget” vanity programs that simply count shares and likes. Every time you have the chance to reach out to a customer, whether it’s to congratulate them on hitting a new milestone or encouraging them to complete a journey leg, you need to take it.

The customer journey is unique.

Personalized experiences require constant monitoring, tracking and check-ins to drive additional opportunities for engagement, and data analysis to ensure you are providing ultimate rewards customers actually want to collect.

The customer experience should be fun!

Add gamification for an even more engaged customer base. You don’t have to build everything in-house to develop customer experience ecosystems with which your customers will love to interact.

Consistent Gratification in Customer Engagement Marketing

Banking customers are discerning and aware. Customer loyalty systems and rewards programs that aren’t consistent will soon be dismissed. It’s a big mistake to offer a 100-point incentive for an action one time, then offer half the incentive a few months later. Be consistent, and constantly improve and expand.

How Perx Drives Bank and Fintech Brand Loyalty Marketing Via Experiences

The Perx Lifestyle Marketing Platform (LMP) transforms how banks and fintechs engage with their customers, and helps you instantly, constantly and consistently provide gratification through personalized experiences and rewards.

With this platform, you can maintain customer engagement marketing as you scale, bringing in new business and retaining high-value customers while driving revenue-generating actions. It allows you to:

• Prevent waste associated with legacy brand-building and marketing.
• Make the customer journey frictionless, instantly gratifying and socially viral.
• Provide rewarding experiences that drive real revenue and keep brands top of mind.
• Create a seamless and gratifying online to offline customer experience.
• Automate processes so loyalty processes can evolve with minimum time and labor.
• Design programs that allow legacy organizations to compete with mobile-first and digital-first financial brands.

Your financial customers are waiting to be wowed by your commitment. Are you ready to take your brand loyalty marketing to the next level? Ask for our free demo today.

Too late! That is how large enterprises traditionally have responded to disruptions.

If you look at historic data just from the last 60 years, the least critical way of answering this question would be ‘not quite effectively’ Richard N foster in his book, ‘Creative Destruction’ proves the same by quoting ‘The life span of a company back in 1958 was 61 years and in 2018 it reduced to 18 years.’ In the next 7 years 75% of companies in the S&P 500 index are expected to be replaced by new emerging challengers in each industry.

The category of companies in the crosshair of displacement are the large B2C enterprises who serve the millions of end consumers – the you and me of the world.

Focusing on the Banking industry. 47% of key banking transactions such as C2C and C2B payments, funds transfers and personal loans have been executed by fintechs and digital payment gateways. The wedge that the Apple and Google Pays of the world have pegged between the banks and their millions of end customers is a sizeable one and if not addressed it is only bound to grow exponentially en-route to erode a bank’s profit margins, 1 micro percentile at a time.

In the era of fintechs and the shift towards digital and virtual banks, the one who holds the key to last-mile customer data becomes the victor by default. Last-mile customer data is the new oil, and the trick to master and acquire it is in how closely you position yourself as an enterprise to your consumer – This translates to how much of the customer’s mobile mindshare does your brand, products and services enjoy? With over $100B invested in existing and new mobile-first fintechs globally every year, the wedge between traditional banks and their customers will turn into a larger crevasse.

So how can banks respond to these disruptions? The customer engagement and loyalty platform from Perx enables large B2C enterprises across Banking and other core verticals to reduce this wedge. With the majority of Perx customers represented by Banking & FSI, Perx facilitates them to get back in the driver’s seat by intelligently incentivising its customers for every action and interaction they have with their bank. Let’s face it, in this instant gratification mobile-first economy, the one who conquers your smartphone has the map to succeed.

By arming marketers in the banking industry with a platform that drives not just vanity metrics such as likes and shares but ‘true top-line growth’ through revenue generating customer actions, Perx enables banks to conquer last-mile customer data and interactions – reversing the growing wedge into a disappearing crack.

The Perx-Oracle partnership delivers the sharpest tool in the marketing armoury that banks have long needed.

Leandro Bark, Head of Partnerships, Perx

Perx’s partnership with Oracle and its Open banking APIs initiative helps address and solve this problem at lightning speed. With over 1200+ global banks trusting Oracle Core banking systems, they now get a chance to take the fight back to disruptions such as the mobile-first customer, fintechs and the rest of the herd.

The Perx platform integrated with Oracle open banking APIs allows banks to instantly drive customer transactions, increase credit card spend, reduce loyalty debt and drive meaningful customer engagement all with instantly rewarding customers for doing so.

Our partnership with Perx enables banks to conquer the elusive last-mile in customer engagement.

Sanjay Mathew, Senior Director, Oracle Financial Services

Singapore’s largest bank drove S$ 24 Million in net new credit card spend on a single customer engagement onboard the Perx platform in a matter of 14 days. The largest bank in Philippines drove $64 Million in net new transactions over a week through a dynamic, gamified customer engagement campaign, and one of Singapore’s largest telco increased its daily engaged customers by 110x in the first 60 days of onboarding Perx.

Learn more about Perx. Connect with us to find out how Perx + Oracle can help you drive top-line growth for your company.