Most banks’ loyalty programs reward customers based on their current balances and account holdings, rather than on how those relationships are changing. That approach may overlook an opportunity, Curinos suggests, because customers with relatively small balances today can become a much larger source of deposits over time. Meanwhile, fintechs are competing more aggressively for these customers.
Banks can use existing customer data, including changes in savings, deposits, and account activity, to identify growing relationships before customers qualify for higher reward tiers, this article says. Such information can also help banks determine when an offer might influence customer behavior and when no action is needed.
Are you paying enough attention to customers whose relationships are growing? How well does your institution use existing data to identify those customers? Are your loyalty programs focused too heavily on current balances rather than future potential?