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Tailoring Rewards for a Truly Engaging Experience in the BFSI Sector

In the last decade technology has made strong in-roads across industries including BFSI (Banking, Financial Services, and Insurance Sector). Delivering outstanding customer experiences (CX) has been largely fuelled by technology, and businesses that want to stay ahead of the curve and relevant understand its importance. The Indian BFSI sector in particular has been at the forefront of technology adoption at 87% vis-à-vis 64% in rest of the world. And it’s no surprise.
Senior leaders in the fiercely competitive BFSI sector understand that a personalized and positive customer experience is essential to increasing customer engagement and loyalty. Technology driven tailored reward programs have emerged as a game-changer in this regard and played an instrumental role in cementing bank and customer relationship.

Financial institutions that have invested in advanced cutting-edge CRM solutions to personalize customer experiences have been able to drive higher user engagement, increase customer value, and foster long-term loyalty. By investing in a technology driven tailored program, institutions can create truly engaging customer experiences and ensure that they remain the one-stop shop for all of their customers’ financial needs.

In this blog, we delve deeper on the impact of tailored rewards on customer engagement and experience in the BFSI industry and how financial institutions can leverage technology to deliver hyper-personalised rewards to create stellar customer experiences that drive engagement and loyalty. Let’s get started.

The Power of Tailored Rewards

The nature of customer loyalty is changing thanks to digitization and evolving customer expectations. As per studies, a loyalty and rewards program inspires 37% customers to stay with a brand, whereas 86% millennials are encouraged to spend more with a brand whose reward program they are a part of. But here’s the thing with loyalty and rewards programs – personalization is what makes them truly effective.   Tailored rewards are designed considering the unique needs and preferences of each customer and not with a one size fits all approach. When designing a tailored rewards program factors like past consumer behaviour and preferences are taken into account. It is also an opportunity for institutions to capture key customer data to improve their overall marketing and communication efforts.

For instance, a customer may be re-investing a certain amount of money in FD’s every 11 months and a certain sum in say recurring deposits. By studying this pattern, a financial institution may offer perks like free locker service, airport lounge access card, priority access to premium services and more, encouraging the customer to do more business with the them.

Another case in point could be extending a pre-approved Card offer to someone who has just opened a salary account. By virtue of such programs, financial institutions also have exclusive contracts with retailers and dealers via which they can extend special discounts on certain brands to their customers. Say for example a customer has applied for a car loan, they may be offered accessories as incentives on availing a loan or an attractive deal for making the purchase from a certain dealer.

Tailoring rewards not only helps engage customers and drive business growth, but it also helps in making customers feel important, appreciated & valued. By intelligently leveraging available customer data, brands can take informed decisions on what product to offer and at what time.
Stat: In the BFSI sector, where trust and long-term relationships are critical, tailored rewards programs can increase retention by up to 20%(Source: Movable Ink). Loyal BFSI customers are more likely to stick with your brand for multiple products and services, boosting overall lifetime value.
Scenario: Imagine a young professional receiving cashback rewards on dining out, while a retiree earns points towards travel benefits. This personalized approach demonstrates your understanding of their unique needs, leading to higher satisfactionand positive word-of-mouth.
Data Advantage: By understanding customer preferences through program participation, your brand can tailor financial product recommendations, investment strategies, and insurance offerings. This results in more relevant marketing campaignsand increased customer engagement with your brand.
Differentiation: In the crowded BFSI market, personalized rewards provide a clear differentiator. Customers are more likely to choose an institution that values their individuality and caters to their specific financial goals. They’ll become brand advocates, attracting new customers through positive experiences.

The Art of Crafting Tailored Reward Programs That Create an Impact

The nature of customer loyalty is changing thanks to digitization and evolving customer expectations. As per studies, a loyalty and rewards program inspires 37% customers to stay with a brand, whereas 86% millennials are encouraged to spend more with a brand whose reward program they are a part of. But here’s the thing with loyalty and rewards programs – personalization is what makes them truly effective.   Tailored rewards are designed considering the unique needs and preferences of each customer and not with a one size fits all approach. When designing a tailored rewards program factors like past consumer behaviour and preferences are taken into account. It is also an opportunity for institutions to capture key customer data to improve their overall marketing and communication efforts.

For instance, a customer may be re-investing a certain amount of money in FD’s every 11 months and a certain sum in say recurring deposits. By studying this pattern, a financial institution may offer perks like free locker service, airport lounge access card, priority access to premium services and more, encouraging the customer to do more business with the them.

Another case in point could be extending a pre-approved Card offer to someone who has just opened a salary account. By virtue of such programs, financial institutions also have exclusive contracts with retailers and dealers via which they can extend special discounts on certain brands to their customers. Say for example a customer has applied for a car loan, they may be offered accessories as incentives on availing a loan or an attractive deal for making the purchase from a certain dealer.

Tailoring rewards not only helps engage customers and drive business growth, but it also helps in making customers feel important, appreciated & valued. By intelligently leveraging available customer data, brands can take informed decisions on what product to offer and at what time.

01 Customer Segmentation

It is important to note that not all consumer segments demonstrate similar behaviour. Also, in this internet-age customer segments are no longer being defined solely by age and income. Segment behaviour varies significantly based on digital use across all industries and BFSI in particular. Banks need to segment customers also basis their online and offline banking solutions usage and tailor rewards such that they benefit on both channels.

02 Identifying customer touchpoints

In a world where offline and digital co-exist convenience is no longer defined by geography. It is defined on ease of engagement, speed of delivery, and personalization of solutions. Besides, the number of times a customer initiates digital engagement helps increase the customer lifetime value. The number of times a customer will engage depends on the value of these experiences. Therefore, it is imperative that financial institutions identify and optimize each touchpoint of a customer journey both online and offline to bridge the gap between customer expectations and the current delivery of products and solutions.

03 Crafting tailored rewards

A generic rewards program offers the same benefits to customers regardless of their preferences, needs, and past behaviour which is why such programs are ineffective and push customers to engage with competition. Recent research suggests that 36% customers prefer to engage with brands that deliver services tailored for them and 48% will happily wait to get a customised experience. The numbers speak for themselves as to why banks and financial institutions need a tailored rewards program for better customer engagement.

04 Leveraging technology to gather data-driven insights

Use of technology like CRM platforms, AI (artificial intelligence) and big data have transformed the way businesses are engaging with their customers. Tech-driven loyalty programs gather customer data across channels and provide a single-view of customer behaviour across channels. It gives insights on what channels do customers prefer to use, what is it that they are looking for, and what is it that excites them. This information can help craft a truly personalized and relevant messaging, optimize offers, and forecast demand.

05 Feedback loops and continuous improvement

Running a loyalty program is not a one-time activity but an ongoing process. It’s therefore important to have a feedback mechanism in place in the form of regular polls and surveys to understand what is it that customers like and what is it that they wish to achieve. Rewards and loyalty programs should be dynamic and evolve to meet changing customer expectations.

Easyrewardz CRM for BFSI – Changing the face of Tailored Rewards

India is home to 121 banks including public, private, regional rural, and foreign banks.

BFSI leaders are cognizant of the fact that an enhanced customer experience is a legitimate and key differentiator in an industry that’s fiercely competitive and crowded. Adopting and leveraging the right technology like Easyrewardz BFSI Loyalty Solution is the solution they need. By running a loyalty program powered by Easyrewardz banks can personalize loyalty programs by:
A tailored rewards program for high-customer engagement is no more a good to have, it is a must-have in today’s market where online and offline co-exist. A rewards program driven by technology is the secret sauce banks and financial institutes need to survive, thrive, and cut-through the noise in this highly competitive space.

Gathering all customer data spread across sources to get a ‘single view’ of customer across products

Manage and organize user data using one dashboard


Engage with customers on their preferred channel and personalize engagement

Deliver a seamless omnichannel experience by giving easy access to reward points across all customer touchpoints and channels.

Create cross sell and upsell opportunities


Acquire new customers through recommendation


Collect customer feedback on a regular basis and improve their reward offerings

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