Banks going digital or neo-banking and seeing rapid growth is no coincidence. This transition is based on changing customer preferences. In the conventional scenario, customers sought reliable services from financial service providers and 100% transparency. These factors mostly drove customer loyalty to banking brands. With changing times, a new faction has emerged, popularly known as ‘FinTech’. Many banking/financial players have taken the technological route to stay ahead of the curve and offer something more than credible financial services.
Customers are more aware of what they want after the pandemic. The COVID-19 phase compelled banks and fintech businesses to think outside the box. Many players built their mobile apps, while others who had already embraced digital transformation moved towards customer loyalty management software.
This post will discuss the current state of customer loyalty in the fintech space and the benefits of investing in loyalty management software.
Customer Loyalty in the FinTech Space
Modern-day customers are driven by experience. It matters to them how a certain banking brand makes them feel. Currently, many fintech players are investing in customer loyalty management software. The reasons are plenty:
- Customer acquisition costs are massive, making it highly difficult for new businesses to sustain.
- There is massive marketing spending by the big players that cannot be matched by the small and medium-sized fintech businesses.
- Customers want instant gratification and personalization, making it necessary for fintech businesses to consider data-driven customer loyalty management software.
- The services offered are highly identical, making it difficult to find the differentiator. Customer loyalty can become your USP to stand out in a cluttered market.
Benefits of Customer Loyalty Management Software for Fintech Businesses
Fintech businesses are based on trusted services. Even if the products or services offered are top-notch, chances are customers may move to a different brand. It’s the experience they look for when they associate with a banking or fintech business. When a fintech business invests in customer loyalty management software, they reap more than one benefit.
1. More Engagement, Better Satisfaction
Offering reward points on every transaction, referral benefits for onboarding others, and gamification enhances the customer experience. They stay engaged with your brand as they receive personalized offers, exclusive access to events, and exciting redemption options.
2. Real-Time Customer Data
Data is the treasure for businesses that want to offer personalized loyalty programs and experiences. Advanced loyalty management software like Novus Loyalty comes with real-time data analytics. By analyzing the massive consumer data, it helps businesses make personalized campaigns that instantly capture the attention of their customers.
3. Hyper-Personalized Rewards
Generic is just not the word when you are building loyalty programs for your customers. Every other bank offers reward points for making transactions. People want redemption methods that are true to their interests and tastes. If a customer gets redemption options from vendors they usually purchase from, they are likely to stick with the brand for identifying their likings and preferences.
4. Safe and Secure Redemption
Customer data is of paramount importance for banks and fintech players. Building secure redemption gateways and associating with trusted vendors are important considerations. Customers want complete transparency in reward management and want their data protected through advanced encryption.
5. Stand Out in the Market
Fintech players don’t have many differentiating factors to stand out in a competitive market. If they are engaging their customers well with robust loyalty management software, they can use this as their unique selling point. It can help them sustain a highly volatile market.
Final Remarks
Spend-and-earn is one of the most successful reward programs in the fintech sphere. Customers can earn reward points based on their transaction value. By adding elements of gamification like spin-the-wheel, or jackpot, businesses can engage customers more efficiently. Look for the following features in a loyalty management software:
- Points and Rewards Management
- Customer Segmentation
- Multi-Channel Support
- Personalized Marketing
- Referral Programs
- Analytics and Reporting
- Customer Engagement Tools
- Integration Capabilities
- Mobile App Integration
- Feedback and Surveys
- Security and Compliance
- Customizable Loyalty Tiers
- Customer Self-Service Portal
- Automated Workflows
Associating with an experienced loyalty management company is the key to success. There are many customer loyalty management software programs on the market. Choosing the right one makes the difference. Look for features like gamification, data analytics, dashboards, and domain expertise while choosing a platform. Novus Loyalty has a distinctive reputation for offering personalized loyalty solutions to fintech businesses. Their years of experience make them subject matter experts.
