Some called it reward programs, some called it loyalty program and others called it privileges.
More often than not, in order to enjoy the host of rewards or special offers, you got to spend with them or make use of their services. And if you need make use of their products or services before you can get something, this looks more like a business transaction rather than a loyalty program.
DBS Bank introduced a new reward program to recognize a customer's loyalty with the bank.
The headline of the sponsored post on Facebook caught my attention.
It says "You've been with your bank for years. Don't you feel your loyalty deserves more in return?"
If you read the headline, it seems to say that the bank is going to reward you for your loyalty without you having to do anything.
Of course, I am curious to find out how is the bank going to reward its customers for staying with them for so many years. Are they going to credit my account with $100? Ok, maybe $10. Or are they going to send me some free dining or movie vouchers?
But on further reading, there's a catch. The catch is you've to consolidate all your cash flow with them to enjoy higher interest rate.
Isn't this a slap on their own face?
If they've extended the higher interest rate to customers who are already using this service, then it could probably be considered a recognition of their loyalty. But to tell existing customers that the bank will offer them a higher interest rate contingent on fulfillment of a condition, there's no loyalty to talk about.
What's worse, those new to the bank (presumably those without any account with the bank at all) can get to enjoy the higher interest rate. They just need to register their interest and a Relationship Manager will contact them for further discussion.
Now I feel betrayed.
So how do you earn your customers' loyalty?
1. Give them something that non-customers and new customers cannot get
2. Give it without the need to buy your product or service.
And the most important thing of all, don't turn your back on them when they are in trouble.