1、simon-Jon Causier Joshua KohJames GethingsElif KaraLoyalty programs in bankingkey success factors and design principlesContentsExecutive Summary 4Types of loyalty programs observed in the banking industry 5Why offer a banking loyalty program?10Potential drawbacks of implementing a banking loyalty pr

2、ogram 12How to design a winning banking loyalty program?13Simon-Kucher Loyalty Program Design Framework 14Who to target?15What to reward?17What to offer?18How much to reward?19How to engage?20Operational enablers 22Conclusion 25Authors 263Loyalty programs can be incredibly powerful.They offer banks

3、the potential to delight customers,deepen relationships,influence behaviors,and improve acquisition and retention rates.However,they can also be costly and complex to run.So how should banks consider the opportunity offered?Should they invest or not?What does good look like?How can an existing schem

4、e be improved?These are some of the questions we examine in this paper.Simon-Kucher is a leading global advisory firm,uniquely focusing on Better Growth.Our partners and consultants have designed successful loyalty programs across multi-ple industries;from airlines to telecoms to ride-sharing and be

5、yond.Within banking,we have designed rewards programs for 60+banks and worked with clients to optimize many more.Here we share some of our learnings and hope to inspire others to deliver more value and delight their customers.4Executive SummaryLoyalty programs range from simple monoline schemes(thin

6、k credit card rewards)through to whole-of-bank points-based programs linked to a range of specific behav-iors.There are of course advantages to both models.However,in recent years the trend has moved toward more holistic programs designed to deepen engagement and loyalty across the banks full range