How Customer Loyalty Programs Powers Australia’s Banks In Delighting The Customers?
- Posted on February 13, 2023 by Robert
- Reading time about 5 minutes
Building trust, engagement, and loyalty among customers is not a matter of days, it takes many years to build the commitment level of the audience. Australia is one of the more mature markets in the loyalty space. With 9 out of 10 Australians actively participating in one or more loyalty programs instead major banks in Australia have largely failed on delivering better long-term customer outcomes.
Over the past two decades, banks in Australia have launched many programs to become more customer-centric which have led to sustained improvement in customer loyalty. Bank Loyalty Program Australia has cut against the stated goals of delivering a great experience for customers. Let’s see how customer loyalty programs can help banks and financial institutions to establish better customer relationships.
Why Are Customer Loyalty Programs Essential For The Banks?
Loyalty programs allow banks and financial institutions to effectively reward and incentivize customers. Today most modern banks incentive their customers in the form of loyalty points, gifts, and rewards, and deliver signup bonuses. While Some banks offer higher interest on a savings account, discounts on loans, lower ATM usage fees, etc. as rewards to attract customers.
Loyalty programs for banks offer sheer essence to your customers in meeting the demand and expectation of the customers while retaining them to keep coming back for more. Customer loyalty software solutions for banks allow them to keep their customers loyal to them. They can deliver many benefits like- points, rewards, and cashback to customers to keep them connected.
How Do Australia’s Banks Fails To Deliver Customer Loyalty?
According to Statista, a survey conducted in 2020, the satisfaction ratings of the banking customers with the largest four banks in the country like – ANZ, Commonwealth Bank, Westpac, and NAB, were all lower than 780 out of 1000. Despite having slightly lower satisfaction ratings, Australia’s bank customers are considering taking out a new banking product and attracting new customers due to their reputation, robustness, and repertoire of products and services.
The banks in Australia whether large or small must diversify their offerings to remain competitive with changing customer preferences. A generational comparison of mobile banking and branch banking usage in Australia showed that customers are more attracted to the banks that offer them loyalty points, rewards, gifts, and other surprises.
Australia’s banks narrow down their focus on delivering short-term revenue to customers to boost quarterly results. This may be due to gaining more revenue in a shorter duration of time exacerbated by the short duration of tenures of bank employees.
Banks focus on short-term revenue and assets that were not customer-centric metrics. They don’t even convince customers to invest in lifetime value programs to deliver higher and better customer outcomes.
The dominant organizing principle remains functional and tribal affinity that naturally occurs among employees makes improving end-to-end processes difficult. Thus, making the banking experience more soiled and hindrance to collaborating.
Most of Australia’s banks rely heavily on rolling averages and aggregate of the customers instead of tracking their specific experiences and a long tail of bad outcomes. This becomes the main reason for bankers to recognize the need and demands of the customers.
Metrics alone do not suffice; therefore, banks must draw insights from the customers and then act on those insights to improve their operational and functional rates to deliver better customer segments.
How Does Customer Loyalty Software Solution Deliver Delight Banking Customer Experience?
Customer loyalty software solution provides the building blocks for banks and FinTech companies to develop innovative banking and payment solutions. It integrates with the bank website and apps financial to process financial transactions and focus on the customer experience. In the background processing, it deals with customers to provide them with various loyalty points and rewards to keep them engaged.
Identifying The Most Loyal Customers
Customer loyalty software solution helps you in generating reports by analyzing customer behavior. Thus, you can easily categorize your valuable customers with the help of loyalty programs. Novus is the best business loyalty program in
Australia can successfully reward your customers by identifying and acknowledging them based on their repeated purchase count.
Surprise And Delight Your Customers
Integrating a customer loyalty program helps you in engaging the customers. If you are looking for the best business loyalty program in Australia to surprise your members with additional perks or rewards, then a customer loyalty software solution is the best thing that you can integrate into your banking software. Small gestures go a long way in improving brand affinity and building a deeper connection with your customers.
Offer Experiential Rewards
Multiple research studies have shown that Bank Loyalty Program Australia are rewarding customers with experiences rather than coupons or gifts. Customers who associate with the various banks are more attracted to the banks that offer them experiential rewards. Customer loyalty programs help in boosting brand affinity, and brand credibility, and eventually build brand loyalty.
Trust The Power Of Referrals
Combining loyalty programs with referral rewards has proven to be highly lucrative and has been considered the best business loyalty program in Australia. Customers are more attracted to gaining referral rewards by recommendations from friends and family over any other type of advertising. Thus, the customer loyalty software solution creates an omnichannel experience for customers with proactive service, consistent messaging, and relevant information.
Banking and FinTech companies are getting it more difficult to offer a delightful customer experience because of the availability of too many alternatives among the customers. Australia’s banking system must execute and reestablish trust through visible and sustained behaviors for the customers. Customer loyalty software solution helps banks and financial services to maintain a customer-centric business and create long-term value for customers and shareholders. Novus Loyalty is the end-to-end loyalty software solution for banks that offers better engagement, growth, and transaction ability of the customers.