And here are three ways on how financial firms can improve their loyalty services. A research from Collinson Group research revealed three things ways on how financial services loyalty programmes could be improved.
Three in five, or 60% of respondents in Singapore said they want a simpler user experience, whilst 52% noted that they would want the ability to combine points with cash. Forty-nine percent indicated that they want a larger selection of rewards.
“This indicates that usability and accessibility of rewards are top of mind for financial services loyalty programme members,” Collinson Group said.
The study said the two of the strongest categories of reward that are most popular with global financial services customers are travel and leisure.
It added, “In Singapore, customers consistently place a high value on benefits such as airport lounge access, concierge services and unique social and cultural leisure experiences. Collinson Group research reinforces that customers value products and experiences offered outside of company core inventory as part of a financial services loyalty programme.
Meanwhile, the research also revealed that only 57% of bank and financial service loyalty programme members in Singapore feel rewarded for their custom. Customers are looking for more opportunities to earn loyalty currency and more choice when redeeming their points.
Here’s more from Collinson Group:
Reward and recognition are becoming increasingly important for customer retention and revenue growth. As regulators encourage greater competition in the financial services market, new competitors emerge and consumers are given more opportunities to compare and switch services. Brands must consider how best to remain attractive to this sophisticated set of consumers who have a greater access to information and are always after the best value for money.
The Collinson Group research with 2,250 consumers across the United States, United Kingdom, Singapore and the UAE revealed that more than three quarters of respondents (77 percent) look for loyalty programmes with a greater choice of rewards. Furthermore, four in five respondents (82 percent), said that the value of a programme decreases when there is only a limited range of rewards available.
An enhanced redemption experience is delivered through a programme that offers the customer the ability to redeem in retail outlets and leisure stores, as well as an e-commerce platform. Survey respondents were clear that the value of a loyalty programme decreases if points cannot be redeemed in physical retail outlets, with 49 percent in Singapore agreeing.
Chris Rogers, Director at Collinson Group said: “Traditional financial services models continue to evolve, with a focus on improved digital services and experiences, but a key area brands need to consider is how they recognise and reward existing customers. Other sectors such as travel and retail are demonstrating new ways of offering more personalised, timely and relevant rewards.
“A key element in enabling this is providing customers with more ways to earn and redeem loyalty currency. Offering the opportunity to ‘spend’ points against non-financial products such as travel, leisure or more altruistic rewards is increasingly attractive to programme members. The chance to redeem points in physical stores such as retailers and to part-pay with loyalty points and cash all make programmes more relevant and therefore more valuable to consumers.”