Zions Bank cash rewards: US$20 million in 2 years
Since July 2005 when Zions Bank launched its Zions Cash Rewards loyalty programme for debit and credit cardholders, members have spent more than US$20 million with the programme's various merchant partners, the bank reports.
Zions Bank says that the merchant funded cash back programme, created by Access Development, has successfully increased customer transactions and overall spending levels because of the added value it offers cardholders.
More cardholder rewards The bank's customers earn, on average, US$4.20 cash back when making purchases from participating merchants using their Zions debit or credit card. According to Cindy Smith, Zions senior vice president of bank card operations, this figure compares favourably to other banks' loyalty programmes in which consumers would earn between US$0.10 and US$0.42 in bank-funded rewards.
The programme now has more than 1,600 participating merchants within the bank's Utah and Idaho area of operation, with merchants being signed up based on the quality of their products, their proximity to Zions Bank customers, and the value they are willing to deliver to programme members. As a result, with the bank being so selective about its partners, the average cash back offer across all participating merchants is currently 21% of spend.
Automatic redemption According to Kelly Passey, vice president of incentive and loyalty services for Access Development, Zions Cash Rewards differs from many bank card rewards programmes in that it does not limit the value of rewards that customers can earn, and it does not require customers to take any positive action to claim their cash rebates.
The reward and redemption mechanism is combined: Cardholders pay the programme partner merchant using a Zions Bank Visa debit or credit card, and their cash rewards are automatically added up and deposited in their Zions Bank account during the following month. The bank reports that it has observed a 15% decrease in monthly cardholder attrition since the programme launched.
More Info: