One of the great challenges in customer retention in banking industry is to make the customers feel valued for their loyalty, without breaking the delicate equilibrium a new reward system may threaten.
To optimise its customer retention programme, Sydbank worked with Customer Empowered Marketing on its new customer loyalty programme ’Sydbank Favorit’, which rewarded customers depending on their level of financial engagement with the bank.
In order to make sure that the system would be well received and easy to use, Sydbank understood that gaining precious customer insights before launch would have been fundamental for the success of the programme.
We helped Sydbank define the objective of its study – to discover if its customers understood the loyalty programme, were interested in using it, and appreciated how important it was for Sydbank to include them throughout the development phase.
Sydbank tested its initiative several times, using the “Loyalty concept validation” study. Every time, the bank got clear insights from its customers on video within a few days, which it then used to make minor adjustments to its ‘Favorit’ initiative before launch.
Thanks to real customer insights, Sydbank has had great success in launching its new customer loyalty programme. Almost half of the bank’s customers went through ’Sydbank Favorit’ – and almost 90% of those agreed to be contacted by the bank. Eventually, the programme would be nominated for the Danish Digital Award.