Peppers & Rogers in their article Points don't add up to loyalty( by David Peak) talk about Citibank and Wachovia launching bank-wide loyalty programs. They have introduced the concept of TRB - Total Relationship Banking( for financial institutions) where they emphasize the importance of emotional triggers in driving loyalty and identifying ways to expand, differentiate and deepen relationships with customers across their entire financial portfolio.
Somehow, I felt it still falls short of explaning how does one go beyond points. TRB still is in the realm of 'transactional loyalty' which could be differentiated interest rates, line-of-credit approvals etc. based on product ownership and profitability. Also, TRB still comes from a point of view of the bank and not the customer. I can see the bank's need for Total Relationships and they don't seem to necessarily address customer's needs from this architecture. We need to also add a proactive emotional/cultural dimension to this framework.
Here are my thoughts:
Financial institutions have a history of focussing on lifestage marketing. The financial needs of customers change as they move-up in life - college admissions to first job to marriage to family to retirement etc. Hence, the need for financial products too change, from bank accounts to insurance to financial planning to home loan to retirement planning etc. I believe, we are moving into a world where customers are skipping lifestages which traditionally is in a linear model as we all knew it.
I believe mindstage marketing is a good definition to drive these relationships as it will connect with them emotionally. Mindstage defines the kind of products/ services that they would need. This defines their savings, spending and product ownership. This explains the increase in demand amongst customers for loan products - personal loans, home loans and more credit card spending. Mindstage defines "to what extent am I willing go out to consume (read spend) and own products of my choice or plan for my savings". Mindstage, therefore, could lead-up to young consumers opting for home loans ( as they might have higher disposable incomes) earlier than expected. It's in the interest of the financial institution to get them to own a home, for example, even before they start thinking and shopping for options. Insurance needs could be far more higher starting early in life, if one is planning for his/her future better than others. Families with double income could have different needs and a financial insititution has to address that proactively - which could be a bank account with financial planning throw-in.
All this behavioural data is available with financial institutions. Driving loyalty and rewarding them basis these could be the way to go beyond just points.