36 MAY / JUNE 2021 PRODUCTS & SERVICES PROFILE Credit Card Rewards That enhance your credit card offering Rod Lasley Executive Vice President - Operations & Member Services Indiana Bankers Association rlasley@indiana.bank @rodlasley ICBA Bancard is a Preferred Service Provider of the Indiana Bankers Association. ICBA Bancard and TCM Bank have served as the Indiana Bankers Association Preferred Service Provider in card services for many years. They have helped nearly 40 Indiana banks provide credit cards to customers in an effective and seamless manner. ICBA Bancard continues to enhance its offerings, recognizing that today’s consumer seeks immediate gratification and personal value. Loyalty reward programs are a key factor in meeting the consumer’s needs and, more importantly, their wants! When your customer is deciding which credit card to choose, the decision often comes down to the type of rewards they can receive. Some may find more value in cash-back options, others may desire travel miles or hotel offerings (especially now that COVID-19 vaccinations are available). ICBA Bancard allows the bank to tailor programs specifically to customer preferences. As we continue to move toward a more digital environment, this value proposition becomes increasingly important. The card at the top of a digital wallet will be the one that provides the most value to the customer, so your bank needs to be offering that card to drive transactions. In order for your bank’s credit card to be top-ofwallet, you need to provide engagement. With mobile payments, engagement is now available with the card product. When customers see their value increase with each use, or the amount of cash back rise, their behavior is reinforced. Younger generations interact with payments through mobile engagement and a gamified approach, with an expectation of immediate gratification. Banks need to consider this when reviewing their current offerings. Because not every customer wants the same solution, banks must actively manage their loyalty programs. Having different value propositions for different customers offers a blend across the portfolio that allows the bank to approach the program from a precision-based mindset. ICBA Bancard can help your card manager with this process and create a program that is not only tailored for your customer base, but also meets the expectations of the bank. One way to do this, beyond national partnerships and discounts, is to provide community-based options through which the customer can see quick rewards from utilizing your card at a local merchant – likely one of the bank’s small business customers. This is a win-win-win scenario. The customer sees value, the small business customer sees that the bank cares about its success, and the community wins overall. Credit card rewards were enhanced during the COVID-19 pandemic. The view of value shifted during this time, and rewards that were easier to redeem became more popular. While in the past, points toward an airline ticket were desired, now opting for 10 cents off a gallon of gas became a better option, strengthening customers’ bond with their cards. Another example involves home improvements. During the pandemic, larger purchases were made to “spruce things up” around the house, and a 2% cashback option became very appealing. It again comes back to seeing an immediate impact. Now is the time to review your current credit card offerings and its adjoining rewards program. ICBA Bancard can help you fine-tune your program. Tracking which customers are utilizing and are happy with your current offerings is part of that review, as well as determining which customers do not have your card as top-of-wallet, and what offerings will attract and engage Continued on page 38.
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