A cursory check on the major banks in Singapore, Malaysia, Thailand, Philippines, and India revealed that almost all of the card products come with a default rewards program of some sorts. The most common form of rewards currency are points, rebates, and airline miles.
There was a time when loyalty programs were deemed the 'killer application' for credit cards. But there seems to be a growing proliferation of 'run-of-the-mill' programs.
What is the relevance of a card loyalty program to an issuer? Have we lost sight of the true business reasons for wanting a loyalty program in the first place?
In the next few weeks, I will be working on a white paper to explore this topic. In the meantime, do share with me your views.
2 comments:
The reality of cardholder loyalty is that such programs are usually originated for promoters who want to 'set and forget' the program. Leave it to work on their behalf; with little or no extra attention.
Relationships need to be given more attention than this. If they are not they can easily crumble, with cardholders getting bored with the program's ongoing sameness and how difficult it is to redeem their points.
For vibrant and engaging programs, refresh what is offered, frequently, and build-up a dialogue with the cardholder, probably with opt-in messaging and added-value offers, on their mobile phone.
For relevance today, there is a need to acknowledge that the king is dead, long live the king!
Thanks for the comment, Alan. I completely agree with you. I made a first attempt to define 'loyalty' as a concept with multiple angles with different areas of significance for various players in the value chain. We must agree that the 'old king' is dead, and we all need a 'new king'.
Post a Comment