It's always a good time to focus on keeping your customers happy and loyal. In this episode of Banking Out Loud, we discuss ways to increase customer loyalty and offer 3 tips to get started and also key mistakes to avoid.

Customer rewards programs matter. Converting loyalty programs to loyal customers necessitates simplicity, creative thinking, and ongoing awards. Anything short of this will leave customers flat and see them jump ship for other financial institutions with more appealing rewards programs.

The $200B loyalty program market has long been shown to drive business for merchants and financial institutions. However, around $16B in loyalty points are unredeemed each year, suggesting this approach to retaining customers may need change. We suggest seven ways in which CFIs can adapt their loyalty programs to retain retail customers — as well as help boost merchant customer business.

Small business customers have no shortage of financial service options, from traditional banks to fintech offerings. Fostering loyalty among this group not only requires providing them with added value, but with the sense that your CFI understands their individual businesses and their unique needs.

Pay by bank, a service that allows consumers to log into their bank accounts during an online purchase rather than entering a credit card, will debut as a new efficient payment method this year at online US retailers. While the service is more secure and eliminates the need for retailers to store consumer credit card data, it also means no fee revenue for credit card issuers.

Owning fractional stock in a company — less than one whole share — is becoming more popular, particularly among younger people who are just starting their careers. CFIs can now offer their customers fractional stocks of a merchant company participating in their debit card reward program. We detail how and the benefits of doing so.

Businesses in practically every industry today are personalizing their messaging to their customers. However, personalization efforts in the financial services industry are lagging behind those in other industries. CFIs can reap a number of benefits by creating more personalized experiences for customers.