Enhance Member Satisfaction with Simplified Credit Rewards

Enhance Member Satisfaction with Simplified Credit Rewards
Rewards programs are a critical factor in driving member satisfaction with credit cards. According to recent studies, 6 out of 10 people report that credit card rewards are extremely important to them.

However, many credit unions struggle to balance appealing rewards with simplicity. But JD Power found that credit card reward satisfaction is at an all time low, so there is a lot of room for improvement. 

Why are Credit Card Reward Programs Important?

According to The Ascent, 65% of card holders say that rewards are more important than trusting the card provider. Along with that, they have provided the most popular reward types. Among the most popular rewards are:

• Cash Back: 68%
• Travel rewards: 32%
• Gas and groceries: 27%
• Balance transfer: 27%
• 0% APR: 25%

With the increasing importance of credit card rewards in driving member satisfaction, credit unions must prioritize simplicity and accessibility in their rewards programs. 

Simplicity Drives Satisfaction

It’s not just about the type of rewards; simplicity and accessibility are key. According to the TSYS survey, 66% of cardholders prefer to use their mobile phones to access rewards and receive instant discounts. Credit unions must streamline their rewards programs to meet this demand for instant gratification and straightforward redemption options.

Meeting the Needs of All Credit Scores

Rewards programs were once seen as a luxury for those with higher credit scores.

However, the U.S. Consumer Financial Protection Bureau’s 2018 report shows that rewards cards are now popular across all credit score ranges. Even consumers with subprime credit scores use rewards cards for over 50% of their purchases, while those in the near-prime category use them for over 65%.

Actionable Steps for Credit Unions

As competition intensifies and card-based transactions increase, now is the perfect time to review and enhance your credit card rewards program. Here are some steps to improve cardholder satisfaction:

• Evaluate Reward Offerings: Ensure your rewards program aligns with member preferences, focusing on popular options like cash back.
• Simplify Redemption: Make it easy for members to redeem rewards through mobile apps and instant discounts.
• Educate Members: Improve communication to ensure members understand their rewards and benefits.

Simplify Your Reward Program with FLEX Card Management

While members may not always get everything they want, you can strive to give them what they need with a well-designed rewards program. By focusing on simplicity and appealing rewards, you can enhance member satisfaction and stay competitive in a growing market.

Unlock the potential of credit card rewards for your credit union! Click the button below to access FLEX's comprehensive eGuide and discover how these rewards can drive member engagement and boost your bottom line.