Download Large Financial Institution - Maritz Motivation Solutions

CASE STUDY
Large Financial Institution
Consumer Loyalty – Reward Strategy
Situation

For several years, a client’s loyalty initiative included a reward strategy
consisting of approximately 500 reward choices ranging from travel, gift
cards, lifestyle merchandise and statement credits.

Approximately three years ago, the client moved to an aggregator model –
utilizing a technology that tied together dozens of reward suppliers that
offered millions of reward choices.

Each supplier in the model offered a different return and customer service
policies and their inventory management procedures.
Consequence of Change
Client Became Concerned…
 Over the last several months, the client noted a decrease in customer
satisfaction scores. Although they strive for an NPS (Net Promoter Score) of a
9 or 10, their scores had decreased to 40% of their goal.

After conducting focus groups and interviewing program customer service
representatives, the client found that the root cause for the customer
dissatisfaction came an excessive reward selection that was confusing and
difficult to navigate. While searching on the site, members complained that
there was too much choice and many rewards were not quality brands.
Members became so frustrated that they started redeeming in higher
volumes for gift cards.

In addition to a poor member experience, the shift of members redeeming
less often for merchandise and more for gift cards caused the client’s cost
per point to steadily rise, significantly impacting the overall program
management budget.
©2016 Maritz All rights reserved
Solution
Client Reversed Reward Strategy Direction
 The client decided to revert back to the original reward strategy that
included travel, gift cards, and a targeted collection of merchandise that
featured high quality, lifestyle brands selected for their respective
member segments.

In addition, the client will be promoting merchandise in conjunction with
their overall marketing program promotions calendar (strategically
integrated).

The new reward strategy launched on September, 2012. Specific goals
outlined include:
-
Create an exceptional member experience by providing a positive
online Experience
-
Increase member engagement with the client’s brand – by not
turning the experience over to a gift card merchant brand
-
Decrease program management costs by shifting redemption
trends to merchandise which features a lower cost per point and
high perceived valued by members
Initial feedback from members has been positive. Specific results will be provided
following further analysis performed on the data to be collected over the next
several months.
For more information, please visit Maritz Motivation Solutions at
www.maritzmotivation.com or call (877) 4 MARITZ.
©2016 Maritz All rights reserved