In today’s dynamic arena of financial services, where customer loyalty is paramount, the journey towards acquiring, engaging and retaining consumers is an intricate one that goes far beyond basic transactions. The art of up-selling to the next tier of premium banking cards requires a deep understanding of customer preferences and lifestyle aspirations. It’s a world where every travel perk needs to be meticulously thought through to entice, capture and retain customer loyalty.
For the modern consumer, the allure of travel rewards is not just about the destination but also about elevating the journey. So by carefully curating a diverse portfolio of benefits and rewards, banks not only enrich the cardholder’s journey but also enhance their banking experience day to day. This, in turn, increases card spend, fosters loyalty and ensures that an issuer’s card remains top of wallet.
Need for unique incentives
From luxury lounges to highly coveted air miles, the appeal of travel benefits has become a key part of modern banking, where every swipe of a card can earn rewards and discerning consumers are spoilt for choice. Yet, amidst the sea of options, banks often find themselves adrift, serving customers with what they believe is a preferable offer as it may appear to stand out in a fiercely competitive market. But simply all that is required is to offer unique and valuable incentives customers want. All this information can be acquired through data and utilized in personalized strategies.
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Collison International’s recent research, driven by behavioral data, investigated the value of travel benefits, their priority for customers when they sign up to a bank, and the impact rewards have on customer loyalty and spending. The study found that while credit card rewards are better than they have ever been, most people will still look for travel-related rewards when they sign up with a bank as a cardholder. As many as 84 percent of consumers will prioritize the rewards they’ll get over the reputation of the payment card issuer, and in the UAE, specifically, 66 percent of respondents based in the region agreed that a bank’s benefits will encourage them to use that card to spend more.
Preference for lounge access
Choosing to sign up with a bank goes hand-in-hand with earning premium perks such as airport lounge access. With 69 percent of UAE consumers agreeing that they would be swayed to change payment providers to receive access to airport lounges as a cardholder perk, brands that excel in this arena are those that recognize the power of travel experiences and lifestyle benefits to drive customer engagement, appreciation and loyalty.
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An absolute must for winning customer loyalty is an unwavering commitment to keeping the customer at the heart of every decision, and understanding what exactly it is that customers need. The essence of loyalty lies in the ability to not only anticipate but also fulfil and even exceed the unique needs and expectations of each individual. By leveraging data-driven insights, we can curate personalized lifestyle rewards and programme strategies that foster authentic connections that are key to success.
As banks strive to innovate beyond traditional reward structures, our findings show that the path to customer loyalty must also come with simplifying the process of earning and redemption and improving the clarity of offerings to enhance user satisfaction and encourage spending. Whether it’s a frequent flyer seeking seamless travel experiences or a leisure traveller craving unforgettable adventures, personalized offerings will guide customer loyalty and engagement. Every transaction offers an opportunity for engagement and a stepping stone towards greater benefits.
Banks must master the art of creating synergies between everyday spending and rewards, creating relevant offers that link spending with reward activation and the benefits that can elevate a customer’s lifestyle.
Research methodology
Dynata conducted an online market research survey collecting a sample of 8,128 respondents in Denmark, France, Germany, Italy, Norway, Saudi Arabia, Sweden, Turkey, the UAE and the UK. The UAE sample is inclusive of 1,014 individual responses.
Priyanka Lakhani is senior vice-president, commercial, EMEA at Collinson International.
