Traditional financial institutions are continuously challenged to differentiate themselves and foster enduring consumer relationships to drive retention. One strategy that has emerged as a cornerstone for achieving these objectives is the implementation of loyalty rewards programs, which serve as a catalyst for enhancing retention and play a pivotal role in driving sustained growth.

Today on the blog, our experts analyze ampliFI client data and review industry statistics to emphasize loyalty programs’ power in driving retention and contributing to financial institutions’ bottom line.

Key Insights from ampliFI Clients

The data reveals compelling trends that underscore the effectiveness of loyalty rewards programs in driving retention and engagement. Notably, ampliFI clients with Real-Time Rewards consistently see higher retention rates than other categories, including cashback.

Cash-Like Rewards: ampliFI clients that offer Real-Time Rewards, including Pay With Points, Checkout With Points, and Fuel With Points, consistently see higher retention and engagement rates among engaged redeemers. These Real-Time Rewards satisfy the consumer’s desire for instant gratification while providing a cost-effective alternative to cashback.

Travel: Redemption categories associated with travel demonstrate consistently high retention rates, indicating a strong affinity among consumers for travel-related rewards. This suggests that offering travel incentives can be a potent strategy for enhancing consumer loyalty and satisfaction.

Cashback: Despite its popularity, cashback redemptions show consistently lower retention rates than other cash-like categories. Consumers who prefer cashback redemptions may seem loyal, but their allegiance can be swayed by the prospect of a slightly better cashback rate elsewhere.

Non-Redeemers: The most revealing insight comes from the comparison with non-redeemers, who consistently exhibit significantly lower retention rates across all categories. This underscores the critical role of active participation in loyalty rewards programs in fostering long-term consumer relationships and driving retention.

ampliFI retention rates per redemption category.

Unveiling the Potential of Loyalty Programs

According to Redpoint Global Survey1, 74% of consumers believe loyalty is about feeling understood and valued. Loyalty rewards programs possess a unique capability to forge deep emotional connections between consumers and financial institutions. 

Offering personalized experiences and exclusive benefits through loyalty programs can significantly enhance retention rates. According to Statistica2, around 70% of U.S. consumers participating in a customized loyalty program spend more time with the brand. Providing diverse redemption offers empowers consumers to choose their rewards, resulting in a tailored experience that nurtures a memorable relationship, continued engagement, and repeat business.

Driving Growth and Retention for Financial Institutions

Beyond fostering loyalty, rewards programs have a tangible impact on revenue growth for financial institutions. Diverse redemption offers ensure that cardholders can redeem for items that matter most to them, enhancing their experience with their rewards providers and reinforcing the loyalty program’s value. According to Dimension Data3, 84% of companies that work to improve the consumer experience see an uplift in revenue. 

By incentivizing higher spending through targeted rewards and promotions, these programs can effectively increase average order values and overall revenue per consumer, thereby contributing to the institution’s bottom line.

The Power of Redemption

Boost retention and consumer staisfaction.

At ampliFI, we have observed that retention is significantly influenced by active participation in loyalty programs. Between redeemers and non-redeemers, we have found that redeemers consistently exhibit higher retention rates than non-redeemers, demonstrating a 10% improvement in retention. This highlights the real-world advantages of engaging with loyalty programs. Ultimately, participation and interaction are critical for fostering long-term consumer relationships and driving sustained loyalty.

Loyalty rewards programs represent a strategic imperative for traditional financial institutions. Through strategic investment in loyalty rewards programs, financial institutions can cultivate lasting relationships, drive sustainable growth, and position themselves for long-term success.

Ready to boost retention at your institution? Connect with our team at or click the link below to get started.

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1Redpoint Global Survey
2Statistica, via Semrush
3Dimension Data, via Semrush