The bank’s redesigned loyalty program, which made it easier to become a member, added more than 3 million customers in the seven weeks since launch.
More than 3 million customers have enrolled in Bank of America’s no-fee rewards program since it launched in late May, and nearly one-third of those clients have engaged with deals.
That is almost three times higher than the level of engagement Bank of America saw in the past, according to Shikha Narula, head of consumer deposits and rewards.
For Bank of America, it is a sign of success. Its core loyalty strategy revolves around deepening relationships with its clients, Narula said
“It’s not just our one aspect, one product, one feature,” Narula told CX Dive. “We want to reward them for their entire relationship with Bank of America.”
Deposit competition is hot, and banks are fighting to become customers’ primary bank. As loyalty and rewards have become increasingly important for retention, Bank of America wanted to revamp its existing Preferred Rewards program to bring in more customers and increase engagement.
The new program, BofA Rewards, is easier to join, requiring only an eligible Bank of America checking account and no minimum account balance. As such, it’s opened eligibility to millions more customers.
The previous Preferred Rewards program was effective at retention, with members exhibiting 94% primacy and 99% retention. But Bank of America wanted to expand the cohort eligible for the program and get more customers engaged, especially at a younger age.
The bank removed the minimum asset threshold of $20,000 and opened up eligibility to anyone who has an eligible checking account, changes that were designed with Gen Z in mind.
“Now, there’s literally no barriers for the younger generation, for Gen Z, to engage with us, to engage with this program, and we believe it’s our way of kind of building that relationship with them and trust with them early by giving them benefits that you know that’ll resonate with them in where they are in their lives today,” Narula said.
A rewards economy
The bank provides deals on retail, gasoline, entertainment and food, with retail making up 45% of client engagement and gasoline 20%.
“We’re seeing it’s very much becoming a rewards economy,” Narula said. “Consumers are leaning on rewards not just as a perk. They’re not just viewing it as a perk, but they are viewing it as somewhat of a way for them to meet their financial needs and part of their financial plan.”
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