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Collinson Group research has revealed that just 38 per cent of bank and financial service customers in the UK feel rewarded for their custom. Customers are looking for more opportunities to earn loyalty currency and more choice when redeeming their points.
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 per cent) look for loyalty programmes with a greater choice of rewards. Furthermore, four in five respondents (82 per cent), said that the value of a programme decreases when there is only a limited range of rewards available.
In the UK, research respondents cited three ways that financial services loyalty programmes could be improved: the ability to combine points with cash (37 per cent), have a larger selection of rewards (37 per cent) and a simpler user experience (33 per cent). This indicates that usability and accessibility of rewards are top of mind for financial services loyalty programme members.
Two of the strongest categories of reward that are most popular with global financial services customers are travel and leisure. In the UK, 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.