It’s no secret financial institutions have access to a wealth of information on their customers.
Data enables brands to better market products and services like loans, accounts and credit cards. And while some consumers are hesitant that “Big Brother” is watching, the majority appreciate brands that use their information to offer more personalized products and services.
Let’s get personal.
Personalized offers outperform generic offers. In fact, 73 percent of consumers prefer doing business with brands that use personal information to make their shopping experience more relevant. And the same holds true for promoting rewards and activities.
So how can financial institutions integrate customer data into their loyalty rewards program to offer more relevant content and a more personalized rewards experience?
Analyze cardholder demographics, purchase behavior and travel patterns to promote activities that encourage point and card spend.
- Cardholder demographics – Financial institutions advertise specific cards to customer segments based on their income, purchase behavior and affinity for travel. Use that data to offer specific activity rewards to each of your cardholder bases. Big spenders? Offer high-end activities like a day at the spa or a luxury vehicle for their airport transfers. Frequent fliers with high card usage? Offer activities suitable to both business and leisure travelers, like museum passes or local-flavor walking or dining tours. Incentivize customers to book using their card for double points or miles.
- Purchase behavior – Analyze customer card spend behavior. Look for purchase patterns to determine which activities members are most likely to purchase; the same will likely hold true on redemptions. If you know Susie frequents Sur La Table, suggest a cooking class or tasting tour available where she’s traveling. When she’s not traveling, encourage her to check out cooking classes or fine dining activities in her home city. Make activity rewards offerings a priority in your communications with Susie by giving them space (and frequency).
- Travel (and non-travel) patterns – Frequent fliers present a huge opportunity to increase activity reward redemption. Each time they travel, they receive communications about their trip. These communications should offer activities to enhance their trip based on who is traveling and where they’re traveling to. Offer double points or support a promo code to incentivize frequent travelers to explore available offerings. Look for travel patterns. If you know Mike vacations with his family in Orlando every summer, offer Disney tickets and other activities the family may not have explored like a scenic boat ride or alligator tour.
This doesn’t mean you should discount cardholders who don’t travel frequently. There’s still opportunity to engage them with activity promotions in their hometown. If you know Mary typically flies only once every couple years, promote staycations and nearby activities like shows or concert tickets, gift cards or other experiences in her home city.
The customer is key.
Understand your customers’ travel (and non-travel) patterns and think outside the box when offering loyalty rewards. Just because you have an array of travel rewards, doesn’t mean all your customers are going to want to redeem on the same products. Testing different offerings within your various customer segments will help your organization better understand the types of people who value your brand, increase redemptions and reward your most loyal customers.
Download our latest report – Picking up Profits: Key Consumer Insights to Drive Travel Attachment – which reveals travel consumer demographics, booking patterns, motivations and objections as well as how brands should use that data to optimize content and increase ancillary travel attachments.