FEATURE between April and June 2021 , and the increased level of customer expectations when it comes to digital expectations has left some traditional banks vulnerable to customers voting with their feet .
But what can the banks do to stop their customers from switching ?
Loyalty in action
There ’ s no one-size-fitsall model here and a quick look around the industry highlights the fragmentation of perception as to what banks offer .
LOYALTY PROGRAMMES IN THE BANKING SECTOR ARE FOCUSED ON A TRANSACTIONAL RELATIONSHIP : THE CUSTOMER TRANSACTS WITH THE BANK , WHO IN RETURN OFFER A LIMITED SELECTION OF ‘ REWARDS ’.
For instance , The Bank of America is one of the world ’ s largest financial services companies with around 56 million consumers . It offers a tiered rewards system depending on the number of its products used or money spent .
Each level offers progressively more ( and better ) benefits , which creates a sense of exclusivity – a reliable way of making customers feel important . ease of payments , to retailer credit cards which give their shoppers points .
When you throw in frustration over branch closures – data from the Financial Conduct Authority ( FCA ) shows that 267 bank and building society branches were closed permanently
Closer to home , Barclays created its ‘ Blue Rewards ’ loyalty programme based on a subscription model . Customers pay a £ 4 monthly membership fee in exchange for cashback rewards . It ’ s a model that encourages retention – members who pay a fee are most likely to commit to making sure they get the most out of their membership .
It also creates revenue via membership fees to invest back in the programme . Lloyds offers a www . intelligentcxo . com
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