Enterprise engagement ignites engagement across your entire financial ecosystem, including loans, savings, and other products. That’s the impact of a holistic loyalty approach.
Remember: Loyalty is reciprocal. When we value and reward the trust and commitment of our consumers, we build deeper, enduring relationships that go beyond transactions.
Enterprise engagement effectively nurtures these relationships by aligning the needs of consumers with the goals of the institution, turning casual consumers into advocates, driving retention, and delivering tangible benefits to both parties:
- For Financial Institutions: Higher retention rates reduce acquisition costs and increase profitability. Emotional bonds lead to more engaged, loyal consumers who trust your brand.
- For Consumers: Feeling valued creates a stronger attachment to your institution. A holistic loyalty approach aligns with their financial journeys, fostering trust and satisfaction.
By rewarding multi-faceted behaviors, financial institutions can create deeper, more meaningful relationships with their consumers, spurring more engagement – what we call the Loyalty Flywheel.
Let’s look at this in action.
Enterprise Engagement in Action: A Sample Strategy
This is a fictional example used for illustrative purposes only.
ABC Financial Institution sets a strategic goal: increase annual auto loan growth by 5%. While evaluating loan rates and planning marketing campaigns, they also activate a powerful loyalty lever: rewarding consumers for choosing them to finance their vehicles.
Jane Jones, a long-time member, is exploring financing options for a new car. She receives a timely email from ABC Financial Institution: Earn 10,000 bonus points when you finance your vehicle with us. The offer catches her eye—not only is the rate competitive, but she’ll also earn loyalty points she can apply toward her loan balance.
This simple but strategic reward makes Jane feel seen and appreciated. She chooses to finance through her primary institution, deepening her relationship, and drives off with her new car.
That’s enterprise engagement: using loyalty to align institutional growth goals with real consumer value.
The Flywheel Effect: Driving Retention & Engagement
The emotional power of loyalty programs lies in their ability to recognize, reward, and resonate. Consider these key drivers:
- Recognition: Consumers want to feel noticed and appreciated. The flexibility to thank them for their loyalty through bonus points to showing your alignment with their financial journey can go a long way toward reinforcing their loyalty.
- Personalization: Tailored programs speak to each consumer’s unique lifestyle, enhancing their experience and creating a sense of belonging.
- Consistency: Consistent communication builds trust over time, encouraging consumers to stick with you.
“Loyalty programs are most impactful when they reflect a purpose that resonates,” says ampliFI CEO Mike Knoop. “When consumers feel valued—not just as account holders, but as individuals-you create bonds that drive retention, satisfaction, and growth.”
When recognition, personalization, and consistency are delivered, the results are tangible. A recent article from Harvard Business School1 states that a 5% increase in consumer retention can boost profitability by up to 75%.
When consumers feel seen and appreciated, they stick around—and keep your institution at the forefront of their financial decisions.
Your Next Move
Take a moment to reflect on your retention strategy. Are you leveraging loyalty programs to:
- Recognize and appreciate your consumers?
- Deliver personalized experiences that stand out?
- Build trust through consistent communication and rewards?
- Ignite the loyalty flywheel?
If the answer is no—or even maybe—it’s time to reimagine what loyalty can do for your institution.
Loyalty rewards can activate engagement across your product portfolio. Connect with us to get started.
Sources:
1Engagement Strategies You Can Use to Retain Customers. Harvard Business School. 26 March 2024.