Nothing to "Loose", More to "Gain"
No need to do anything more than what you used to do. Just use your card to pay for your normal transactions.
The "rewards" program launching had increased during the last couple of years by the local and international banks in the region. A growing number of banks, looking to get more out of their existing customers, are offering new programs that allow consumers to accumulate points that can be cashed in for a variety of items.
The core strategy of the program is to motivate the bank's customer to use his credit card for any transaction and try new services offered. The bank will make money on more transaction fee from the merchants, who usually pay 1 to 2 percent of the transaction to the bank.
All programs are designed in a very similar way, but with different functions and facilities. Exclusive programs were launched and designed by banks, such as me bank loyalty program and Mashreq bank millionaire. For each dirham spent by your credit card you will gain number of points. Also it will allow you to enter a draw for a major prize at the end of periodic time.
On the other hand, some banks corporate with some existing programs to attract their customers. By using your HSBC credit card you can gain miles from the "airmiles" rewards program. This program will allow you to change your cumulative points with certain prizes offered according to that. Citibank had corporate with "skywards" program, (the loyalty program for Emirates airline). By using your credit card you will gain miles which will be added to your skywards points. You can exchange these miles with tickets to special destinations or add value to your trip by Emirates through upgrading your class from economy to business or first.
There are many other programs with different features and facilities that have its exclusive competitive advantage and attractiveness.
All these programs are concentrating on exciting customers of the bank by pushing them to have two or more relationships at the bank. The customer will buy nothing for using his card, but the bank will benefit from the fees paid by the merchants.
It is more expensive to find a new customer than it is to market to the current customer so it's a cost effective way to grow business.
The loyalty and reward business model had found its way into the financial services. From the bank's perspective, the idea is to make your bank the customer's first choice for additional needs.
The banks say their motivation is increased business, loyalty and a genuine attempt to make banking more fun!
posted by Eng. Wasim @ 8:48 م
<< Home