Banks and credit unions with Real-Time Rewards wield a powerful tool in the quest to capture the loyalty of Generation Z consumers. With their distinctly digital preferences, this demographic represents the future of cardholders. However, despite the allure of rewards programs, a recent study reveals a stark reality: many Gen Z cardholders are left dissatisfied.
Gen Z Loyalty Program Challenges
A collaborative report by PYMNTS Intelligence1 highlights the challenges banks and credit unions face in meeting Gen Z’s expectations. While interest in rewards programs remains high, 41% express discontent compared to 28% of millennials.
Evidently, friction points mar the redemption experience for many credit card holders. 72% of respondents encounter hurdles, with a third citing difficulties during the redemption process. Factors contributing to this frustration range from confusing technology (23%) to lengthy redemption procedures (22%) and unclear redemption details (22%).
A transformative approach is necessary to tackle these challenges and foster meaningful engagement with Gen Z cardholders. This is where Real-Time Rewards comes in — a revolutionary tool for banks and credit unions looking to redefine their loyalty programs.
Real-Time Rewards: The Generational Solution
Real-Time Rewards, including Checkout With Points, Pay With Points, and Fuel With Points, offer a seamless experience while engaging cardholders at the point of sale. The real-time nature of these rewards aligns with Gen Z’s redemption preferences. Here’s how:
Checkout With Points: Consumers can use their accumulated points directly at the point of sale to decrease the transaction amount. By integrating rewards redemption into the purchasing process, Checkout With Points eliminates the need to visit a rewards website or follow separate redemption steps.
Pay With Points: Once cardholders have enough points to cover transactions, they’ll receive an email or text notification prompting them to apply points to their transaction simply by clicking a button or replying with a text message. A statement credit will then be applied to their account.
Fuel With Points: Fuel With Points empowers cardholders to redeem rewards for fuel purchases directly at the pump. Cardholders can save up to $0.50 per gallon up to 20 gallons, providing a significant discount and aligning with Gen Z’s on-the-go lifestyle.
Integrating Real-Time Rewards into their loyalty strategy enables banks and credit unions to stay ahead of the curve. By embracing innovation and evolving to meet the preferences of Gen Z consumers, banks and credit unions can forge lasting relationships with the next generation of cardholders.
Ready to kickstart your loyalty program? Connect with our team at sales@amplifiloyalty.com or click the link below to get started.
Source:
1PYMNTS. Gen Z Card Users Are Dissatisfied With Rewards Programs.