How Community Banks Can Make the Most of Consumer Rewards and Discounts

How Community Banks Can Make the Most of Consumer Rewards and Discounts

In today’s competitive banking world, community banks have a special role to play in their cities and towns. They’re trusted neighbors, not just financial institutions. They support the local community, local non-profits, and local businesses. 

Standing out from the big, national banks can be a challenge for regional players, who are often constrained by technology and marketing resources. One great way to connect with your community and grow your banking business is by offering compelling consumer rewards and discounts. When done right, these programs can help you keep your current customers happy, attract new ones, and build stronger relationships with your commercial customers. 

Why Consumer Rewards Make Sense

Let’s face it—everyone loves a good deal. Rewards and discounts have become something people expect from their bank these days. Studies show that 70% of people are more likely to use a card (and stick with a bank) that offers rewards that matter to them.

For marketing leaders at community banks, this is a big opportunity. Here’s how a solid rewards program can help your bank grow:

1. Keeping Customers Loyal:

   People like feeling appreciated. When you give them something back from their purchases - like cashback, discounts at local stores and restaurants, special perks, or charitable contributions - they’re more likely to stay with your bank. A good rewards program can turn customers into lifelong friends and advocates.

2. Bringing in New Customers and Business Accounts:

   Rewards programs are a great way to catch the eye of folks who might not have considered switching banks. By offering personalized perks, you can appeal to new customers. With a flexible platform that can support local businesses, you can also attract new business accounts with a promise to provide them marketing support and new customers. 

3. Supporting Local Businesses:

   Local banks are all about community, and so are local businesses. By partnering with nearby shops, restaurants, and services to offer discounts or rewards, you can strengthen your ties to the community and help everyone thrive. 

4. Encouraging More Spending:

   When customers know they’ll get something in return, they’re more likely to use their debit or credit cards. This helps your bank earn more and gives you useful insights into what your customers value.

Building a Rewards Program That Works

1. Know Your Customers:

   Start by learning what your customers want. Are they looking for discounts on local restaurants, pet care, travel perks, or something else? The better you know their preferences, the more impactful your program will be. Mine your relevant customer data to determine the most appealing offers. 

2. Pick the Right Partners:

   Team up with businesses your customers already love. For example, if you are trying to attract a younger demographic, focus on categories that they are shopping: pet, baby, travel, restaurants. 

3. Keep It Simple and Mobile Friendly:

   Nobody likes jumping through hoops. Make it easy to earn and use rewards from a phone, and make all communication mobile friendly. Clear communication of the value is key to making a loyalty program a success.

4. Spread the Word:

   Use every channel you can to let people know about your program. From emails to social media posts to in-branch flyers, make sure everyone hears the good news. Sharing customer success stories can really help, especially for local businesses who will grow customers and foot traffic as a result of your program.

5. Stay Flexible:

   Keep an eye on how your program is performing and don’t be afraid to tweak it. Ask for feedback and adjust your offerings to keep them fresh and relevant.

Consumer rewards and discounts aren’t just a nice to have - national banks have proven that they are a smart way to grow business and drive consumer behavior. Adding local businesses into your rewards program will further drive purchases while giving back to your community. By creating a rewards program that fits your customers’ needs and highlights your local connections, you can make banking a little more rewarding for everyone. Now’s the time to get started!

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