Bank loyalty programmes pile on pleasure and personalisation

Banks must develop programmes with full-on pampering.

When OCBC Bank created a customer loyalty programme for their OCBC Voyage card users, it was determined to remove the usual complications and restrictions that hounded such airline travel credit cards. The bank let card holders redeem their Voyage Miles from their desired airlines, be it full service or budget, and the bank did not impose any points expiry or blackout date restrictions. The goal was to remove features that could frustrate customers enough to leave the loyalty programme.

“One of the shortcomings for existing loyalty programmes lies in the restriction placed on redemption of points collected, which can increase the barriers to customers staying active in these programmes,” says Theng Kiat Goh, chief marketing officer, global consumer financial services, OCBC Bank.

Personalised programs
Faced with tougher competition and users who will not hesitate to switch banks if their existing ones proved less than accommodating, banks are developing loyalty programmes with full-on personalisation.

ICBC Singapore, for instance, launched the first RMB/SGD credit card and the first USD/SGD credit card in Singapore complete with fee waivers in an effort to woo dual currency credit card holders. Credit card holders receive administrative fee waivers of up to 2.5% for purchases made in yuan within mainland China, or for all purchases – both on- and off-line – made in USD.

“This is especially appealing to the modern, internet-savvy traveller, who can look forward to saving money on their transactions, be it in China, or anywhere else in the world through the internet,” says Yunchuan Cao, deputy general manager at Industrial and Commercial Bank of China (Singapore).

One of the best ways banks can boost customer loyalty is by redesigning their reward programs to become more personalised, concurs Chris Rogers, director, market development at Collinson Group.

In explaining the value of pampering and personalisation, he cites his firm’s research which found less than half of consumers in Singapore feel they receive a high level of personal service. Singapore consumers also feel that their banks do not reward them for staying, citing this as the strongest reason for not feeling loyal to their bank.

Rogers also mentions the growing importance of tapping e-commerce trends to further increase points accumulation and redemption.

“Embracing and integrating modern e-commerce techniques with loyalty programmes to deliver relevant and motivating experiences across multiple devices and channels will boost loyalty as consumers expect to be connected to their loyalty programmes and redeem their rewards anytime, anywhere,” he says.