Research & Thoughts

Loyalty Currency Changes at Light Speed!

This Capco white paper examines what financial institutions are doing to meet increased customer expectations for value, selection and convenience in loyalty programs. It examines how establishing metrics and making the technological changes necessary to sustain the program’s original intent are crucial to ongoing success.

Loyalty currency has come of age. Once primarily a tool for customer acquisition, currency programs are now critical to retaining business and moving customers toward profitable products and services.

The financial services industry has long been in the forefront of loyalty currency. Serving a wide range of customers and possessing massive amounts of consumer-related information, financial institutions are well equipped to create and capitalize on their loyalty offers. Industry leaders are leveraging rich data sets and investing in interactive consumer technologies such as smartphone applications to offer a compelling rewards experience.

Financial institutions face challenges, however, in capturing the value of loyalty currency. Regulations are limiting the collection of program fees. Institutions must compete for the attention of consumers participating in multiple loyalty programs. Program participants are often uninspired by loyalty offerings.


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