We live in a fiercely competitive financial environment where several credit unions and banks are facing challenges in attracting and retaining member loyalty. The rise of many new digital financial organisations in Australia has made it easier for members to switch to new providers. From big fintech to neo-banks, many options in the market offer great benefits such as higher returns on deposits, lower borrowing expenses and others.
It is becoming a challenge for credit unions to distinguish themselves, keep members satisfied, and foster their continued engagement. One of the best solutions is to develop a compelling loyalty program to communicate its benefits to members effectively. In this blog post, we will find out how a trusted Credit Union Loyalty Software in Australia can increase brand loyalty and boost member engagement.
Reasons Why Credit Unions and Banks Need Loyalty Programs
Keeping customers engaged and retaining them is one of the most successful ways for credit unions and banks to grow and maintain their customer bases and asset balances. This means it is essential to find new ways to incentivise new user sign-ups and explore methods for retaining members more effectively.
Talking about credit unions, we know about some of the perks offered by most traditional programs, such as high interest rates on savings and low rates on loans. For regional banks, local knowledge and expertise help to draw attention and hold depositors. However, these may not be enough to compete with the services, convenience, reach and stability that big banks offer to the public, and that’s where a well-planned loyalty program can be highly effective.
Ways to Build a Winning Loyalty Program in Australia
To make a loyalty program work in the competitive financial market of Australia, a few aspects must be kept in mind, which can help in making every member of credit unions feel valued-
- Begin with a Strong Base
Take time to focus on eliminating unnecessary ATM and overdraft fees, as this will show you are committed to putting more money back into the members’ pockets. Additionally, you can offer dividend payments to members without their need to maintain minimum balance needs and at high rates as compared to competitors.
Make sure that your loyalty program is integrated with user-friendly financial education tools or gamification elements to teach financial literacy, which will help boost your connection with credit unions.
- Engage Members in the Right Way
Ensure that your loyalty program rewards members throughout their journey as they grow with your credit union. You can keep them engaged by customising dividend tiers by analysing the investment levels, choosing the thresholds that are attainable and meaningful and rewarding them with real incentives to increase savings with your credit union.
Another way to bring delight to your members is by giving unexpected rewards such as a $10 Amazon voucher or an adjustment in loan terms. This will help in making members feel valued and enhance the overall banking experience.
- Communicate with Members Clearly
While building your loyalty program, it is important to keep the program as simple as possible and avoid jargon. Whether it’s about communicating the benefits of joining the credit union loyalty membership or explaining the process to earn rewards, clarity should be maintained to ensure better understanding and appreciation.
Additionally, communication should be consistent and engaging across multiple platforms, such as social media, newsletters, etc. Take time to educate your program members with workshops or webinars to help them maximise their benefits in the best way and stay informed for better learning.
- Implement & Improve Program
Always take time to understand what your members need and figure out how your loyalty program will meet their specific needs effectively. After consulting with experts, ensure that you tailor the program and make it aligned with a unique brand and community.
Launch the program with clear and simple communication that can help members understand your program’s significance with ease and unlock new opportunities. Lastly, keep track of members’ feedback to know them better and measure metrics of the program to update the program as per requirements.
Final Thoughts
Having a well-designed loyalty program for your credit union is no longer an option but an essential aspect of growth as it plays a huge role in strengthening relationships with members. Whether your organisation is big or small, investing in good quality loyalty software can be a game-changer and help your members feel valued, keeping them loyal for the long run.
Many successful banks and credit unions rely on loyalty programs to build stronger bonds with members and give more reasons to stick around. If you are also planning to build long-lasting relationships with members, connect with the loyalty experts in Australia who can create a custom-made program for your needs and offer a seamless loyalty experience across multiple channels. Turn your credit union members into lifelong advocates with the help of a loyalty program and boost engagement like never before.
