A win-win strategy
But it was not just an uplift in bank card transactions that came out of the partnership; in addition, customers felt their loyalty was being further rewarded and so were more engaged with the loyalty programme. They were able to achieve an extra boost towards claiming their reward, thereby encouraging greater participation than normal. At the same time, Banamex increased its market share in both credit and debit card payments.
Although costs are involved when payments are made by debit or credit card, these costs are not that different for banks or retailers if you take into consideration that cash payments also involve additional costs, including security, transport and storage.
Banks get the opportunity to be physically present in stores as the mechanism and their partnership will be highlighted on most, if not all, POS elements developed for this short-term loyalty programme. This level of marketing communication wouldn’t otherwise be possible for banks.
A partnership model fit for multiple markets
The proportion of people in Mexico who use banking services such as debit and credit cards is extremely low, at around 25%. With such dramatic results, this model would therefore be even more interesting in countries where up to 90% of the population use banking services. When considering your next loyalty programme, a bank collaboration shouldn’t be overlooked as a major activation technique.
Hearts & Wallets is the official magazine of BrandLoyalty. It is a magazine for people working at the highest levels of the food retail industry. The goal of Hearts & Wallets is to come up with real insights on - and answers to - current issues, while offering its own individual interpretation as food for thought.
First published in February 2017.