With the unprecedented times experienced in the last two years, it’s no surprise that consumers have become more savvy with the ways they spend, driving financial institutions to change their market approach. Reward programs have become increasingly necessary as consumers are more knowledgeable about opportunities to maximize their dollar, and the market has pushed the financial industry to expand their earning and redemption repertoires in order to best address the demands of cardholders. As a loyalty solution provider, our experts have gathered the most influential consumer trends and how financial institutions can influence consumer spending through their rewards program to drive portfolio revenue and cardholder engagement. 

Opportunities to Gain Greater Return on Investment

Cardholders are driven by the opportunity to get better return on their investments (ROI), driving spend in categories and on cards that will better reward them. Consumers are seeking debit and credit rewards programs that offer better earning and redemption options, focusing heavily on earning rates and redemption value based on qualified transactions. In order to appeal to consumers that are interested in greater ROI, it’s important to deliver quality earning opportunities to the market as part of the program and allow cardholders to gain points on everyday spending through a simple, easy-to-use program. For example, with ampliFI’s card-linked offers, cardholders can gain bonus points at eligible local and national merchants instantly at purchase without opting in, allowing for cardholders to experience increased value and greater return on investment. 

Alternating Top-Of-Wallet Cards Based on Promotions

With cardholder access to more information in today’s digital world, they are learning to better use their financial resources to maximize spending and earning. Cardholders are taking advantage of promotions to maximize ROI, often assessing which rewards-linked cards offer promotions during a period of time, and utilizing their spend on those accounts to gain rewards. One of the main ways financial institutions can continually engage cardholders and keep their card top-of-wallet is by offering seasonal, time-sensitive promotions that allow them to gain bonuses for specific behavior. For instance, a financial institution may run quarterly merchant category promotions driven by seasonal needs, such as grocery stores and major retailers during the holidays or home improvement stores in spring, to incentivize cardholders to spend during specific periods in exchange for additional rewards and points.   

Financial Trends

Buy Now, Pay Later and Quick Checkout Options

Throughout the pandemic, “buy now, pay later” and quick checkout options have seen exponential growth, allowing for consumers to feel less pressure and hesitation when making purchase decisions. With this recent shift in consumer spending, cardholders have greater expectations for more flexible purchasing options, including better long-term payment options and access to purchase without the need to manually enter information, causing a rise in digital wallets and purchasing. As a financial institution, it’s essential that reward-linked cards are accessible to cardholders for easy checkout and payment cycle usage, allowing for them to spend and earn rewards easily and efficiently. One great example of maximizing this trend is by allowing cardholders to add their accounts and cards to their digital wallets with one click from their user account, streamlining the enabling of card usage in the digital space and reducing labor from cardholders to use them. 

Reciprocated Brand Loyalty and Customer Service

Loyalty brands are here to deliver loyal customer experiences in exchange for cardholder usage, and cardholders have grown to be more demanding in mutual loyalty and service as the world shifts to a more digital platform. Consumer generations are beginning to shift to more tech-savvy users, but their expectations for service have increased in conjunction because they expect more real-time and quality servicing from businesses and financial institutions versus more traditional service methods, like paperwork and in-person. It’s incredibly crucial that financial institutions offer excellent service and cardholder dedication as they engage with their loyalty program, with quick communications and action.  One method of increasing popularity is by offering digital communication channels that allow for cardholders to gain information quickly and efficiently, such as help pages or alerts that notify cardholders when there is information available to fulfill their needs without them having to reach out. 

Looking to ampliFI your rewards program to be more innovative and real-time to capitalize on financial trends for your cardholders? Our experts have over 20 years of loyalty experience developing loyalty solutions to support your cardholder demands and organizational goals. Start your journey by scheduling a demo at sales@amplifiloyalty.com today!