The document discusses how banks can better engage customers in the digital era. It suggests that banks prioritize mobile experiences, enhance loyalty programs, build relationships with corporate partners through co-branded loyalty programs, gamify customer experiences through status levels and rewards, and deliver personalized offers to customers across digital channels based on transaction data insights. The document argues that these strategies can help banks strengthen customer relationships and increase engagement in the current challenging banking environment.

1. WHITE PAPER
What can Banks do to build a closer relationship with their
customers?
A look into the dynamics of banking in the digital era, and how leveraging the smartphone, payment
technologies and corporate partnerships could unlock new opportunities for customer engagement
Intelligent technology that gives you the edge
5 ways to better engage with your customers using a Mobile Marketing strategy
Is your Loyalty Programme working? 5 common mistakes and how to get it right
A new opportunity to leverage brand affinity with your Corporate and SME clients
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SOME INDUSTRY FACTS & CHALLENGES
We are seeing traditional Financial Services providers being forced
into major business transformation for the following reasons:
 A Demographic Power-shift?
The Millennial segment is our future. A generation that has grown up using the
latest technologies, who will always look online for ‘digital solutions’ and whom
represent the largest opportunity within the un-banked population to grow the
customer base. This is a segment that is very much ‘Mobile-First’ and demand
digital enablers to control their life through their smartphone. Mobile Banking
uptake is set to grow even further as forecast by a 2016 TSYS study:
 Declining Consumer Trust?
A 2015 study from Ernst & Young found that the number of customers using
only one single bank has dropped from 41% to 31% since 2011. In the same
period, people distributing services across three or more banks has increased
from 21% to 32%. This tells us a lot about consumer trust during a changing
global economy. A Survey from NGData in 2015 showed the below responses
when people were asked whether they felt the banks understood their needs:
Intelligent technology that gives you the edge
63% of Millennials
have shown a
willingness to
download and use a
Mobile App for
product enrolment or
bill payment
Only 18% said they
wouldn’t and 19%
were ‘Not Sure’

3.  Market Saturation, Convergence & Increased Attrition?
In the majority of countries around the world, the consumer is presented with a
plethora of banking options, and until recently the average lifetime of a banking
customer has been relatively good. Surveyed customers, quite predictively, placed
the most value on Customer Service as being the key characteristic when
choosing their bank:
Today though, we are seeing a number of other industries encroaching on the
banking world. Many telecommunications providers are offering Mobile Money
services…especially in emerging markets, and many retailers are offering loans,
financed purchases and store credit cards. Interestingly, the attrition rates for
banks…those that have switched their banking providers…almost directly
correlates with the uptake of digital banking in terms of generation:
 A Technology-driven Business Threat?
The rise of the mobile application has seen many industries suffer from the
creativity and ingenuity of innovative, disruptive, digital companies. For example,
consider how Uber has fundamentally challenged the taxi business, and how
Airbnb is impacting hoteliers and B&B owners.
The same trend presents a threat to banking with apps like Venmo, LendUp and
Zopa starting to appear on the market giving customers new options for financial
services. This is all happening at a time where 79% of the general consumer sees
the relationship with their bank as being simply transactional rather than providing
meaningful value to them:
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A survey from the
Millennial Disruption
Index found that 71%
of millennials:
“Would rather go to
the dentist than listen
to what banks are
saying”
…and 33% believe
that in five years they:
“Won’t need a bank”

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1. Make Mobile the priority for digital customer experience
Take advantage of the 140 times per day that a customer engages with their
mobile device. Ensure your content is what they engage with and that it provides
them value by being purposely designed as a mobile experience.
2. Enhance your Loyalty Programme
Many of today’s Programmes are not performing as desired. Ensure that your
Points Programme is engineered towards retention rather than acquisition. Our
experience has shown that customers are happier when they get smaller benefits
more frequently.
3. Build a content and community relationship with your
corporate & SME banking partners
Consider hosting a multi-wallet loyalty scheme with your SME and corporate
customers, where the retailer’s points as well as the bank’s points are
automatically earned when they use your card to pay. Say ‘goodbye’ to a wallet
full of loyalty cards and stimulate habitual customer engagement.
4. Gamify the customer experience
Customers feel more satisfied when something is achieved, and putting fees on all
services tends to block service adoption. Consider creating visible status levels
within each of your products where service adoption, usage and loyalty leads to
increased benefits, but where the basics are free. This is the way that mobile
games are monetizing their developments very effectively.
5. Make contextual offers available across all customer
touchpoints
Maximise the value potential from within your data by using actionable insight and
personalizing your offers accordingly. Make the right offers visible when a
customer engages with your services on your ATM, Internet Banking, Mobile Apps
and your Call-Centre.
Intelligent technology that gives you the edge
In 2016, ‘Millennials’
are set to overtake
‘Baby-Boomers’ as the
largest living
generation.
Millennials are
becoming one of the
most influential, yet
challenging, consumer
groups for the banking
industry
SO WHAT CAN WE DO TO BETTER ENGAGE TODAY’S CUSTOMERS?

5. Make Mobile the priority for digital
customer experience
Mobile is not only reshaping the consumer journey, it is
reinventing the entire consumer experience for all businesses.
How and when consumers transact with a brand or service
throughout the lifecycle is trending to mobile-first. For research-
to-purchase, service & support, through to loyalty and
feedback/advocacy, mobile is now the primary channel
customers turn to. LinkedIn recently informed BLS that 50% of all
profile & job views globally are now through their App or on a
mobile browser.
For many traditional and established businesses it has proven to
be a challenge to provide mobile-first consumers with an end-to-
end digital experience on one screen. Users are frequently
forced, for multiple reasons, to engage with a branch, outlet or
call-centre to accomplish a desired task or goal. Some 90% of
consumers move between devices to accomplish a goal, using
an average of three different screen combinations each day.
Customers tolerate this less than optimal experience because
most strategies don’t consider the user experience elements of
device and native behaviour to that device as a journey in itself.
Consumers deal with it because most brands don’t cater to their
mobile needs through every stage of the customer lifecycle … so
they have no choice.
Businesses that are able to start-up or adapt to providing a
seamless, end-to-end digital process flow for their customers are
winning in today’s innovative world and this is forcing marketing
strategists to think beyond mobile-first and start thinking about
mobile-only campaigns tied to mobile-only ecosystems. Gone
are the days when your mobi-site was just considered as an
extension of your main website…it’s almost the opposite today.
In many businesses, mobile tends to exist without a dedicated
owner to take accountability for the customer experience. As a
result, mobile strategies for the most part, are focused on an
isolated aspect of customer engagement, whether it’s marketing,
m-commerce or loyalty.
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The average
consumer
engages with
their Mobile
an average of
140 times
per day

6. WHITE PAPER
Enhance your Loyalty Programme
Is your Loyalty Programme performing as well as you would like?
5 common mistakes in the Loyalty Programmes we see in the
financial services industry are:
They tend to be designed for acquisition rather than
retention, advertised strongly to attract new customers
Benefits are often too far away for a customer to see
immediate value…too much has to be spent in order to
get anything useful in return
Businesses confuse the generic reward or status options
that are bundled as part of a product package as
engendering ‘Loyalty’.
Visibility of points balances has to be searched for rather
than being in front of the consumer at all times
All customers are treated the same within the
programme…there are no milestones, achievements or
social interactions to keep the users interested
All of the above can be addressed by designing your programme
around the mobile, with an app made available for existing
customers, simplifying and digitalising the redemption process
and adding gamified milestones to your programme to stimulate
the customer engagement.
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Build a content and community
relationship with your corporate &
SME banking partners
Many of us collect cards and open loyalty accounts with
brands…whether it’s a coffee shop, a supermarket, a gas
station…there are many forms of points, stamps and badges out
there today. The cards go into our wallets where we tend to
forget about them until the next time we happen to go into the
store. Just like the airlines and hotels, retailers strive to drive
footfall or repeat online purchases and blast us with generic
emails, whilst they carry all the cost of card production and back-
end IT systems to support their own rewards programme.
An Opportunity for the Banks
As the hosts of both consumer debit and credit card accounts as
well as corporate & SME business accounts, banks are uniquely
positioned unlock a new revenue stream…the hosting of a multi-
wallet, digital loyalty platform as part of the SME business
banking package.
Retailers need no longer worry about the production of cards or
the accounting of the rewards as that will all be taken care of
directly within their business banking package.
Customers, when they pay with their debit or credit card (or
indeed Mobile Wallet), can earn points automatically to both their
bank and retailer loyalty accounts, and view and manage their
points all from a single mobile application.
The customer experience is the key. Real-time access to their
wallets on their smartphone through a Mobile App or Browser.
They can view the accumulation of their reward currencies
across the partner network and have the freedom to spend the
amounts by transferring and burning the points or get access to
digital coupons using downloaded barcodes and QR codes as
directly from their smartphone.
Intelligent technology that gives you the edge
InTelestage™ i-CLP
The engine behind
a Multi-Wallet,
Digital Loyalty
Ecosystem
www.businesslogicsystems.com

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Gamify the customer experience
It is well-known that mobile and social games have an addictive
and viral quality….especially amongst the millennial segment.
The reason they can be so addictive is the simple pleasure that
humans derive from competition and achievement. There is a
powerful psychological impact in taking something mundane or
outside the realm of something one typically enjoys, and turning
it into something engaging.
As technology advances, we are seeing heavy investment,
research and development going into augmented or virtual reality
experiences and connecting anything and everything within the
‘Internet of Things’, but is this relevant for the banks?
In the world of Mobile, everything has the potential to be
‘gamified’ and there are many simple things that can be done to
turn your services into a ‘game’ that has in-app purchases and
social media story sharing.
Take for example your current card accounts. Aside from having
the different card options that each come with their own status
benefits, what if we gave customers that sense of achievement
and status by using tiers and levels within the account?
Consistently showing the customer how far away they are from
the next level and what they get when they get there is, in
essence, ‘gamification’.
Intelligent technology that gives you the edge
59% of
Millennials, aged
18 – 34, open
their banking app
on a daily
basis…even if
they don’t do any
transactions

9. WHITE PAPER
Make contextual offers available
across all customer touchpoints
Keeping paying customers is the most important thing for a bank, and
there’s nothing more important when engaging this segment than
providing the best customer service. This includes knowing the right
time to proactively engage with your customers, as well as having the
right information at your fingertips when they engage with you.
Being ‘Contextual’ means having the right offer visible, to the right
customer, at the right time…for them! Too often we see businesses
sending generic templated emails to their customer base with
irrelevant offers, which get deleted almost instantly.
Email can be difficult channel to get a good response rate and so
stimulates us to look at other potential channels for automated
customer interaction. In telco, the mobile data advancement has seen
a significant reduction of the use of SMS as a communication channel
as we turn to WhatsApp, Facebook or Skype to have P2P text
conversations. The unexpected benefit of this is that SMS is once
again emerging as a very useful, trusted and almost exclusive B2C
notification channel.
Contextual customer engagement comes from identifying
actionable insight from transactional data
Analysis of transactional and customer profile data is already at the
disposal of financial institutions and it can be used to uncover powerful
insights into customer needs, preferences and behaviours. Often
though, this insight comes too late to use.
The key for financial institutions delivering a superior customer
experience is to have access to this data when it is most
needed…when the customer engages with you on any channel.
In the call-centre, typically a CRM will tell an agent everything about a
customer’s account, their last transactions, their credit rating, the
products and services they hold with you…etc. A well-trained agent is
able to turn this into a good customer engagement. Can the same be
achieved when the customer engages with your services on your
Mobile App or at an ATM?
Enabling these digital channels to present personalised offers that can
be accepted there and then can be a very powerful tool to increase
both customer satisfaction as well as revenue at the same time.
Intelligent technology that gives you the edge
In a recent study, 34%
of customers surveyed
had contacted their
bank to resolve an
issue, and 1/3 were
left un-satisfied by
the resolution.
Empower your agents
with quantified offers to
present to the
customer…and make
the same offers visible
to the customer on the
mobile and ATM.

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Your business benefits
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About Business Logic Systems
To find out more about Business Logic Systems’ comprehensive
portfolio of Campaign & Loyalty Management Solutions, Data
Management Technology, and Customer Value Management expertise:
Call: +40 264 590703
Email: marketing@businesslogic.co.uk
Visit: www.businesslogicsystems.com
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