Beyond One-Size-Fits-All: Exclusive Research Reveals easy methods to Capitalize on Differences in Credit Card Customer Loyalty Preferences Across Diverse Global Markets

Jul 9, 2024 | blog

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Research highlights common takeaways and regional preferences in client loyalty drivers throughout North America, Middle East–Africa, South America, Europe, and Asia–Pacific.

VANCOUVER, British Columbia — The bank card loyalty program market is booming, with the vast majority of U.S. bank card holders now proudly owning not less than one card that gives a rewards program. A worldwide survey by WillowTree, a TELUS International Company – rebranding to TELUS Digital Experience later within the third quarter (NYSE and TSX: TIXT) – reveals the driving forces behind growing client curiosity in bank card loyalty packages, highlighting common takeaways and distinct regional tendencies. Above all, the analysis underscores the necessity for monetary manufacturers to undertake superior buyer segmentation and tailor-made expertise methods for efficient buyer retention and development.

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“In a crowded marketplace, financial service brands, particularly those looking to launch a new global loyalty program, or expand existing programs to other countries, cannot rely on a one-size-fits-all approach. Instead, deep market-specific research is crucial to understanding and meeting the diverse needs of customers across regions,” stated Tobias Dengel, President of WillowTree, a TELUS International Company. “By creating shared infrastructure that enhances efficiency, while maintaining the flexibility to adapt to regional nuances, brands can develop truly personalized experiences. This research-baked approach is core to our commitment to human-centered design. When brands partner with experts who can harness data, AI, and automation, it not only strengthens customer loyalty but transforms these programs into dynamic tools for sustained business growth. A well-executed loyalty program provides insightful data on consumer behaviors and preferences, enabling brands to tailor their offerings and elevate engagement in every market.”

WillowTree’s survey included almost 500 English-speaking loyalty bank card members from throughout 5 areas: North America, Middle East–Africa, South America, Europe, and Asia–Pacific. Respondents had been requested about private, cultural, and monetary elements that will affect their perceptions and preferences relating to bank card loyalty packages. The analysis staff then ranked client preferences based mostly on the kinds of services the place respondents favor to redeem their loyalty factors.

The analysis highlights that to launch personalised card affords that excite audiences in new markets, monetary providers corporations want a data-backed useful resource that reveals the place client preferences overlap between worldwide markets — and the place they diverge.

Universal Takeaways

Emerging markets like China, India, and Southeast Asian nations, together with Latin America and elements of Africa, are spearheading world development in bank card utilization, and the U.S. now ranks ninth worldwide when it comes to bank card possession. The surge in world bank card development is essentially fueled by elevated smartphone use, on-line procuring, and the provision of safe, handy, and cashless fee strategies.

Across all world areas surveyed, the research uncovered a couple of universally constant insights that provide monetary manufacturers a coherent set of values round which to start crafting a worldwide loyalty program that transcends geography and resonates with audiences worldwide:

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  • A client’s notion of their monetary stability will influence that client’s strategy to loyalty packages. A sturdy client information platform enabling segmentation by revenue and spending habits will assist floor related loyalty affords and promotions.
  • With this in thoughts, the preferred loyalty redemption selections are usually money again and important items, which ranked highest in 4 of the 5 areas. Brands ought to prioritize and localize these reward classes and make them simple to redeem.
  • Consumers worldwide belief and like to have interaction with loyalty packages by way of cellular apps slightly than desktop or web-based experiences, underscoring the necessity for frictionless, personalised cellular experiences.

“To meet consumers’ high expectations for how they interact with brands, we recommend that financial institutions develop mobile apps with intuitive, user-friendly interfaces. This includes advanced voice-enabled technology, which enables customers to engage with GenAI customer service tools as though they’re in a natural conversation,” stated Dengel. “In our collaborations with financial services brands, we prioritize a data-first approach. By integrating real-time data from customer interactions into our comprehensive digital CX strategy, we are able to craft personalized experiences that adeptly reflect regional preferences and cultural nuances, ensuring relevance across the globe.”

Regional Trends: Differentiated Consumer Preferences Across Five Global Markets

Beyond the universally constant findings above, the analysis revealed a number of regionally particular behaviors and preferences that can be utilized as predictors of brand name loyalty and dedication, highlighting how data-driven customization is essential.

North America: Prefer Redeeming Points of their Communities

In the U.S. and Canada, customers present a robust choice for loyalty packages that provide simple level redemption and clear visibility of accrued advantages. Higher-tier, aspirational rewards like luxurious holidays, unique occasions, or once-in-a-lifetime experiences inspire North American members to build up factors over time. Consumers additionally worth rewards they will redeem at native companies or providers inside their communities. North American customers are an outlier in that that is the one area the place customers have a marked choice for redeeming factors for vogue and attire.

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Middle EastAfrica: Looking for Alignment with Personal Spending

Consumers in these areas exhibit a excessive degree of “uncertainty avoidance,” so bank card corporations should be extraordinarily clear (and supply step-by-step steering) on how customers’ common spending can accumulate factors. They favor loyalty packages that align with their private spending habits and supply transparency and clear communication about easy methods to earn and redeem factors. Consumers on this area understand the worth of their cash as extra unstable from week to week they usually least steadily spend factors on distinctive experiences, equivalent to concert events. Similar to their counterparts in South America, customers listed below are fascinated by incomes and redeeming factors on big-ticket, high-price gadgets.

South America: Appreciate Saving on Essentials

Consumers on this space get pleasure from loyalty packages that assist them cut back spending and supply money again on on a regular basis necessities like groceries and utilities. In locations like Brazil, the place installment funds are well-liked, loyalty packages that present bonus rewards or reductions for clearing installment balances are valued. Additionally, respondents on this area uniquely prioritize incomes and utilizing their factors at bars and eating places.

Europe: Seeking Clarity and Convenience

Consumers on this area exhibit a extra relaxed perspective in direction of uncertainty and like solely a average degree of steering slightly than overly detailed directions when trying to redeem factors. Despite having the least optimistic long-term monetary outlook amongst all areas, customers nonetheless prioritize loyalty packages that assist them get monetary savings and simply redeem factors. European respondents had been additionally the one ones within the survey who prioritized incomes and redeeming factors on meals supply.

AsiaPacific: Cultural Nuance Highly Valued

Consumers listed below are the one respondents within the survey who prioritize utilizing loyalty factors for journey above all different rewards. Additionally, culturally tailor-made promotions have a major influence, significantly in India, the place 32% of respondents report that their non secular beliefs form their bank card utilization. This affect could also be mirrored in a choice for avoiding debt or selecting purchases that align with their religious values. Consumers listed below are additionally extra more likely to redeem loyalty factors for distinctive experiences, equivalent to concert events, compared to different areas.

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Leveraging Loyalty Programs as a Continuous Data Source for Personalization

With in depth buyer information, monetary organizations are in an advantageous place to seize and leverage client information to ship extremely personalised experiences. This helps to make every buyer transaction really feel tailor-made to their individuality. And this ongoing information stream can maintain personalization efforts, making certain monetary loyalty packages adapt and develop as buyer behaviors and preferences change.

“By incorporating data from customers and grouping them based on behaviors and characteristics, we can deliver highly effective one-to-one messaging,” added Dengel. “Our ultimate goal is to deliver personalized content at an individual level, and to continually refine that content based on user interactions. This is how we can help financial brands achieve personalization at scale, and ensure loyalty programs delight customers for years to come.”

For full survey insights, obtain the report: Global Credit Card Rewards Programs: How Consumer Loyalty Preferences Differ by Region

WillowTree, a TELUS International Company – rebranding to TELUS Digital Experience later within the third quarter (NYSE and TSX: TIXT) – affords complete assist in growing impactful loyalty packages by analyzing buyer conduct and trade tendencies to develop structured, personalised methods that enhance engagement and income. The firm’s built-in marketing campaign groups are capable of ship real-time, personalised experiences via data-driven automation at each stage of the shopper journey, making certain that monetary providers manufacturers can present distinctive and constant buyer experiences. Learn how WillowTree, a TELUS International Company, helps monetary providers corporations maximize loyalty and rewards ROI with loyalty technique and buyer expertise consulting.

About TELUS International

TELUS International, rebranding to TELUS Digital Experience later within the third quarter (NYSE & TSX: TIXT), designs, builds and delivers next-generation digital options to reinforce the shopper expertise (CX) for world and disruptive manufacturers. The firm’s providers assist the complete lifecycle of its shoppers’ digital transformation journeys, enabling them to extra shortly embrace next-generation digital applied sciences to ship higher enterprise outcomes. TELUS International’s built-in options span digital technique, innovation, consulting and design, IT lifecycle together with managed options, clever automation and end-to-end AI information options together with pc imaginative and prescient capabilities, in addition to omnichannel CX and belief and security options together with content material moderation. Fueling all phases of firm development, TELUS International companions with manufacturers throughout strategic trade verticals, together with tech and video games, communications and media, ecommerce and fintech, banking, monetary providers and insurance coverage, healthcare, and others.

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TELUS International’s distinctive caring tradition promotes range and inclusivity via its insurance policies, staff member useful resource teams and workshops, and equal employment alternative hiring practices throughout the areas the place it operates. Since 2007, the corporate has positively impacted the lives of greater than 1.2 million residents all over the world, constructing stronger communities and serving to these in want via large-scale volunteer occasions and charitable giving. Five TELUS International Community Boards have offered $5.6 million in funding to grassroots charitable organizations since 2011. Learn extra at:

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TELUS International Investor Relations
Olena Lobach

TELUS International Media Relations
Ali Wilson

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