CSCU, a leading credit union processing association, published a white paper designed to help credit unions rethink the importance of rewards programs. Within it, they write about 50% of all credit unions offer a rewards program connected to a credit or debit card, but also point out a very tiny number offer any kind of relationship rewards program.
“Single-line product positioning can be fairly simple and even be covered in a one-page checklist,” said Robert Legters, senior vice president of loyalty services for FIS. “A relationship rewards checklist, however, is much more extensive. Leaders must sit down and determine the right model and how it pertains to the overall strategy. A value must be assigned to every product or service. Less than 1% of our clients offer relationship programs because of the time and effort required.”
This data underscores both the importance of these programs from a competitive persepective as well as how these kind of strategies require precious internal resources to develop. For organizations struggling with maintaining equitable operating efficiencies, designing effective rewards programs can be a real challenge.
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