Credit card rewards have become a necessity in today’s competitive environment. Although faced with the same commodity as hundreds of other financial institutions, credit unions already have a unique position in the industry that gives them an edge to stand out from the crowd. If your credit union is grappling with how to best differentiate the value of its credit card in the market, here is some friendly advice.
The key to differentiation is in your rewards program. Highlight the advantages of your credit union’s credit card with creative marketing messages that remind members how these rewards benefit their changing priorities and needs.
Unprecedented inflation has increased household expenses, so marketing your credit union’s credit rewards program highlights the value of using these cards beyond mere convenience. Offering flexible rewards redeemable at the time of purchase for everyday items like groceries, gas, and supplies helps members offset costs and shows them your credit union understands their financial priorities. Now is the time to review and confirm if your rewards program fits members’ current needs. Once that is done, make sure those benefits are highlighted front and center in your messaging.
This approach also applies to traditional travel rewards. Amid travel restrictions over the last two years, many cardholders have amassed a heap of credit card rewards and now want to redeem them for anticipated travel in 2022. However, many travelers are finding their rewards are not going as far as they expected. The travel industry has increased their redemption values, and reservations with rewards have become more difficult with less availability. By offering redemption on everyday purchases, credit unions can help cardholders save and spend more wisely on their travel plans.
At Envisant, we’re here to help you develop a customized rewards strategy that fits the priorities of your credit union and its members. To learn more and get started, contact us at 1-800-942-7124. by PHIL SEELY, ENVISANT