Members love perks. Feeling like they're getting something extra can be a great incentive to sign up for just about anything. If your credit union offers a credit card, consider what kind of extras you can offer, in addition to interest rates, that will bring members to you instead of going for their airline miles or rewards credit cards.
There is no shortage of reward options, so you need to stand out with a better carrot and stick than the rest. Here are five best practices to make sure your rewards program is a success.
5 Tips for a Successful Rewards Program
1. Effectively Market Your Rewards
If you're not advertising your rewards program, it might as well not exist. Ideally, you should create a marketing schedule for the entire year including postcards, emails, signage, social media posts, and calendar related promotions. Define your promotional time windows as well.
For example, if you're offering a balance transfer promotion, be crystal clear on the dates it's available and the dates the transfer must be complete by. Clarity in your marketing on the specifics from the outset will help you avoid member frustration.
2. Show Members How to Get the Max Benefit
You're telling them the program exists, how to qualify, and what they get as a result. But you also need to teach prospects as well as current cardholders how they can get the maximum value from the program. This can include:
- Leveraging debt: Educate members on how to manage their debt effectively to improve their financial health.
- Understanding APR: Provide guidance on how to take advantage of favorable APR terms to minimize interest payments.
- Improving credit score: Offer tips on how to use the program to build or improve their credit score over time.
- Tying into other CU assets: Show members how to integrate their credit card usage with other credit union products, such as checking accounts and loans, to create a comprehensive financial strategy.
By demonstrating that your credit union can offer a full financial solution—from banking to loans to credit cards—you help establish value that extends beyond what a single program can offer.
3. Target Ideal Members
Your CU has a wealth of transaction data that can be analyzed to help you determine the members that will be the most responsive to your credit card program. A great place to start is the share draft account transfer record.
If there are ACH payments going to big banks regularly, you can see who might be more likely to be interested in credit cards. This audience could likely be put into a targeted campaign that ties in messaging for balance transfers specifically since you can tell they are likely to be carrying debt.
4. Customize Rewards to Your Local Membership
One of the key advantages credit unions have is their deep connection to the community. Leverage these local ties by customizing your credit card rewards program to resonate with your members' unique needs and interests. Consider these options:
- Partner with Local Merchants
- Offer Cash-Back Rewards
- Support Local Charities
By making your rewards program more relevant and personalized, you not only differentiate your credit union but also strengthen your bond with the community you serve.
5. Assess and Learn from Your Existing Credit Card Users
If you're in month three of your marketing strategy and you're not seeing a boost in your program, it's time to investigate how members are using the card to identify opportunities for alternate offers.
For example, if many members have the card, but it doesn't seem like they're actually using it, perhaps a promotion of double points on purchase could incentivize them.
Build a Great Rewards Program with FLEX Technology
In the end, by combining enticing rewards, strategic marketing efforts, and comprehensive member education, your credit union can present a credit card program that shines in a competitive market. This not only adds tangible value to your members but also propels ongoing growth for your credit union.
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