Customized Rewards Increase Retention and Usage
The Challenge
A large financial institution sought to increase loyalty with its customers. It had a robust rewards program that was underutilized. Stagnant point usage indicated dissatisfaction with the current redemption possibilities. They turned to Circles to increase point burn through a more compelling offer.
Circles' Solution
Circles implemented a boutique solution – a customized rewards program enabling cardmembers to redeem their points for whatever they desired. Point levels were based off of the product’s market value. Not only did cardholders have the freedom to redeem products which they deem truly valuable, but Circles fulfilled the requests in a personalized, 1:1 manner.
The Results
- Circles' customized rewards program actively engaged these customers and enabled them to satisfactorily use their reward points; in turn, they felt valued and appreciated by the financial group
- Cardholders burned twice as many points per transaction with Circles' rewards program vs. the standard catalog offering (See Right)
- 92% of customers plan to continue earning and redeeming points based on their experience with Circles' customized rewards program
1 Fred Reichheld, author of Loyalty Rules
