Case Study #1

Company Profile

A full-service 100-year-old regional bank with total assets in excess of $16 billion and more than 5,000 employees. The bank prides itself on the ability to focus on the needs of its customer and build strong relationships that last a lifetime.

Situation

The bank’s personal card portfolio of nearly 100,000 members was experiencing a decrease in spend approaching 1% per year as well as higher-than-forecasted attrition rates. Several of the competing banks in the region were offering free cash-back reward programs to their personal card portfolios.

Objectives

Build a reward program that was free to the entire personal card base, rewarded additional spend and incorporated the “feel” of a cash-back program. The program was to be supported by a multi-faceted marketing strategy that employed direct mail, branch involvement, and statement messages. All of these strategies were to be supported by both a live customer service center and an online presence where the personal card holder could access their account, see available point totals, make redemptions and view all history associated with the program.

Solution

BreakAway Loyalty^sm designed a program that met all of the objectives. The unique solution employed a bank branded stored value gift card as the central redemption option which allowed the bank to realize additional interchange revenue to help offset the cost of the program. Additionally by employing a bank branded gift card, other marketing benefits of brand awareness and front of wallet placement was achieved.

Results

Impressive! The portfolio has seen an increase in spend of nearly 11% year over year. The online registered adoption rate is 22% which is above industry norms. The redemption rate is in the 20% range which is below industry norms. The attrition rate has stabilized.

Applications

Credit or debit card portfolios where the card base is not participating in a rewards program.  The program is easily adaptable to an enterprise solution to allow for cross selling and can be broadened include other point reward streams like equity lines, checking accounts, etc.

For more information on how BreakAway Loyalty^sm can deliver an outstanding solution to fit your situation and objectives, please call 1-866-645-1697 or write us today. We pride ourselves on designing custom programs, because
each of our clients is unique and deserves to stand out from the crowd.