The competition for top-of-wallet card status requires financial institutions to cater to the everyday growing demands of cardholders. Offering targeted and tailored loyalty programs can help drive cardholder growth and retention to ensure the institution’s card is the primary card of use. Having insight into your rewards program performance to learn how cardholders earn and redeem allows your financial institution to strategize and enhance the cardholder experience. 

Offer Cardholders A Variety Of Redemption Options

All cardholders are not created equal. Cardholders differ in demographics, generations, and geographic locations, all of which warrant differing needs and wants, and it’s important for financial institutions to respond accordingly. A recent industry study, the 2022 Consumer Loyalty Research study, found that 63% of financial institution cardholders would spend 20% or more if their preferred mix of loyalty benefits and experiences were offered to them. With that in mind, it is vital to offer a broad redemption catalog.

The same study found that when it comes to using rewards, 22% spend rewards as soon as they are earned. One way to meet this consumer group is to provide redemption opportunities that don’t require them to keep track of their points, but instead, present them with the opportunity to redeem once they have earned enough points. ampliFI’s Real-Time Rewards suite includes solutions that serve cardholders with the ability to redeem for a discount at checkout, the gas pump, or directly after purchase. This helps to meet cardholder demand by offering immediate gratification and driving perceived value to consumers who would rather use reward points to cover their purchases instead of cash. 

In addition to real-time rewards, loyalty program users still value traditional rewards such as gift cards, travel, and cash back. Including traditional reward options in your redemption catalog allows you to fulfill the desires of all of your cardholders. 

Maximize Rewards With Bonus Opportunities

cardholders bonus opportunity

Cardholders are becoming more aware of opportunities to earn rewards to maximize their spending. In today’s economic environment with inflation on the rise, it’s more important than ever to inform your cardholders how to boost their earning potential. It’s crucial for financial institutions to grant cardholders bonus point opportunities through promotions, merchant-funded card-linked offers, and ongoing offers to promote engagement and redemption. Delivering quality bonus opportunities provides greater benefits to consumers outside of the standard earn and redeem cycle.


Integrate With Digital Wallets

Phone displaying connect your walletThe rise of digital wallet usage caused by the pandemic created a new consumer habit that is here to stay. Millennials and Gen Z are driving this trend that is quickly becoming the industry standard. According to PaymentsJournal, the digital wallet market is forecast to grow by 18.9% year-over-year through 2028. Digital wallet access makes online and in-store transactions easier by eliminating the need to have a physical card at the time of purchase. Digital wallet integration not only provides a seamless cardholder experience but also increases card usage and card spend.

The competition for top-of-wallet card status isn’t going away, and financial institutions need to adapt and innovate to continue to meet the evolving demands of their cardholders. There are three current trends to explore as your financial institution reviews the competitiveness of its redemption offerings. First, consumers love choices. Incorporating a mix of traditional rewards like travel and gift cards, along with real-time rewards that allow consumers to redeem cash-like rewards without visiting a website ensures there is something for everyone. Second, offer engaged cardholders opportunities to earn more rewards. There are a variety of ways to offer boosted reward earnings, from targeted promotions to card-linked, merchant-funded earning opportunities. If they are engaged, incentivize them to use their card even more! Finally, offer digital wallet integration to provide a seamless and contemporary cardholder experience.

Want to learn more about how ampliFI can help your financial institution meet cardholder demands? Talk to our specialists and get a demo of our leading-edge loyalty solutions.

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