Members of the financial services industry are failing to match the demand for strong loyalty programmes, according to new research.
A survey of 4,000 consumers around the world shows that 63% are influenced by an appeasing reward when choosing a new bank or credit card.
This was viewed as a higher priority than some of the other methods of persuasion, such as positive reviews from other customers (58%) and the perceived reputation of a brand (69%).
Unfortunately the businesses themselves, as well as their loyalty programmes, have some way to go before they can satisfy their customers. Only one in ten of the survey participants said the groups they go to for financial services offered excellent rewards, leaving the sector lagging in the satisfaction stakes.
James Berry, the e-commerce director at Collinson Latitude - the survey’s author - demanded that banks, insurance providers and other members of the financial contingent wised up to modern consumer expectations.
A lack of reaction
Although the survey outlined plenty of room for improvement, the respondents did at least drill down into some of the things they’d like to see financial services groups do when offering rewards.
A resounding 82% said that a greater number of rewards would solve some of the issues companies are having with their loyalty programmes, while 72% demanded these to be redeemable online.
According to Berry, the survey provides a snapshot of a market which has failed to cater for the demands of their consumers.
“In the midst of a worldwide economic crisis, the financial services industry has had the digital revolution to contend with – one that has thrown up new ways of doing things and ultimately changing the way consumers interact with them.
“What programme managers and marketing professionals in the FS [financial services] sector need to realise is that consumer expectations have changed; they expect to be rewarded for their custom 24 hours a day, 7 days a week, on the device of their choice.”
Berry himself recommended the offering of personalised reward programmes in addition to a better choice of offers to improve the current situation.