Budget Planning for a Comprehensive Loyalty Program

Tough budgeting decisions are being made. Consider investing in your financial institution’s loyalty program as an effective cost-saving solution.

As your financial institution begins budget planning and forecasting for the upcoming year, transforming your credit card rewards program could potentially be a critical element to factor into the mix.

While this may not be a top priority (particularly in this economic climate), loyalty programs have been found to boom during economic downturns. Economic uncertainty means that consumers are making difficult decisions about their financial future. Companies can cut costs by driving business via existing customers rather than acquiring new ones.

Wondering if you should consider making a comprehensive loyalty program a focus for your institution’s budget planning? Read on to prepare for the valuation process in creating an effective loyalty program amid a spending slowdown.

Should Creating a Comprehensive Loyalty Program be a Top Budgeting Priority for your Institution?

Consider adding a comprehensive member loyalty program to your budget planning conversations if your financial organization has the following:
  • More than
    $1B Assets Under Management (AUM)

  • More than
    100,000 members

  • More than
    10,000 cards

Think about the following questions as you participate in upcoming budget planning and forecasting conversations:


Are you likely to switch credit card processors in the next few years?

If substantial loyalty and engagement is a goal for your organization, you’re likely ready to move beyond a credit card rewards program and transition into a comprehensive loyalty program.

Switching credit card processors is costly enough. Building a program that moves with you from processor to processor alleviates some of the financial weight of that transition.

If you’re looking to switch processors in the near future, this may be a critical component of your program to discuss in budgeting conversations.

Is your processor program starting to feel limiting?

If your financial institution has reached a certain size, “in-the-box” programs may be restricting its potential. At this point your institution should consider working with experts whose focus is on building engaging world-class loyalty programs.

Ideal loyalty programs are agile and surprisingly budget friendly. Worried about wrestling with intricacies of program rules and guidelines? Given expertise in the loyalty space, these rules can be written and established based on your financial institution’s objectives.

Consider how you envision your loyalty program growing and as well as the support it may need going forward. Think about the financial and talent resources needed to make your program goals come to fruition.


How many partners are you outsourcing with?

True loyalty goes beyond rewards programs and extends to a top-of-the-line member experience. This includes personalized program design, intuitive website design and creative capabilities.

Consider working with a resource that offers an all-encompassing solution with straight-forward pricing.



Do you have the technology in place to support where you are going?

There are some limitations on the technology for programs today. It is important to think about whether your current program can provide you with the necessary APIs or files to integrate your rewards data into your online banking (OLB) system.

Instead of enduring the cost, time and hassle involved with upgrading tech platforms every few years, consider investing in a partner whose tech platform integrates and grows with you.


Are reporting capabilities there for you when you need them?

Knowing and understanding results is key to a successful program. Remember that it’s not just about the data. It’s about leveraging that data, gleaning actionable insights to drive both loyalty and new membership over time.

Reporting should be valuable and timely. Processor programs have limited reports, delivered only monthly or quarterly, and usually as a data dump in an Excel file. Switching to a comprehensive program will provide greater insight into your program performance with data visualization updated every 24 hours.

Given financial pressures and budgetary concerns, the idea of considering new loyalty program build may seem daunting. However, with the right business partner, a loyalty program for your financial institution can make a lot of sense.



Start by examining your credit card reward program as you begin the valuation process. Look for solutions that align closely with your business goals and objectives. Review program capabilities. Ask direct questions and partner with a company with proven capabilities in making comprehensive loyalty a reality, so your financial institution is well-positioned to meet its objectives.

Thinking about adding a comprehensive loyalty program to your financial institution’s budget? Click here to see how RAZR Financial’s platform and team of experts can partner with you.

Sign up to hear the latest from RAZR Financial!