Title: REWARDING EXPERIENCES.
Authors: TODD, SARAH
Source: American Banker Magazine. Jun2014, Vol. 124 Issue 5, p2829. 2p. 2 Color Photographs.
Document Type: Article
Subject Terms: *CUSTOMER loyalty programs
Company/Entity: ZIONS Bancorporation (Company)
Abstract: The article reports on the move of some banks to reward
customers participating in activities that have no direct benefit
to the bottom line. It shows that Zions Bancorporation
launched Pays for A program, which offers junior high and
high school students one dollar for every “A” earned on their
report cards. Meanwhile, other banks are giving rewards to
customers who volunteer their time at fundraising events and
make charitable donations.
Full Text Word Count: 1239
Accession Number: 96398241
Database: Business Source PremierREWARDING EXPERIENCES
HOW BANKS CAN CRAFT MORE POWERFUL CUSTOMER LOYALTY PROGRAMS BY
LOOKING BEYOND THE BOTTOM LINE
Companies often treat loyalty programs like a business exchange. Customers rack up points
redeemable for plane tickets or meals at Olive Garden by swiping credit cards, taking out auto loans
and recommending a bank’s services to their Great-Aunt Dee.
But a new way of wooing customers is gaining momentum among banks and other companies.
Rather than going tit for tat, these companies are rewarding customers for participating in activities
that have no direct benefit to the bottom line. By encouraging community involvement and other
positive behavior, companies hope to bond with customers over things they truly care about. The
intent is to foster loyalty, attract new customers and add some luster to the brand in the bargain.
Zions Bancorp, has been dabbling in tactics like these since before the nascent trend. One example
is its Pays for A’s program, which launched in 2003.
The Salt Lake City company gives…