bank loyalty - definition
ICLP - the global loyalty marketing agency - is an expert practitioner of implementing Bank Loyalty Schemes.
Running effective bank loyalty programmes is more vital than ever as recent research has shown that as many as one in four credit card holders say that they use their cards specifically to collect loyalty points, perks or other discounts. But, of course each of these transactions is potentially profitable for the bank running the scheme.
Many banks have embraced loyalty marketing to help in the fight for market share; to acquire new customers; and importantly to retain those who are already account holders. Existing account holders are thought to be easier to service, as customers as they have gained brand knowledge, are familiar with existing products and processes, and therefore require less product education. Banks, along with other financial organisations aim to keep as many of their existing customers with a variety of bank loyalty initiatives.
Banks already have an advantage over other types of organisations who put loyalty schemes into effect, as most of their account holders will already use a credit or debit card, to which value can be added by the use of a partnering loyalty scheme. Some banks, for instance let the users accrue air miles as they use their cards for purchases.