NAFCU Journal November December 2021

34 THE NAFCU JOURNAL November–December 2021 One of the most important things to remember is that one-size-fits-all loyalty programs may not work for all credit union members. FIS recently completed the Generation Pay Study that included data from different age groups on payment preferences and preferences in general. A few key takeaways from the survey include: ■ Gen Z, generally defined as born between 1997 and 2012, are tech-savvy, with 70% using biometric authentica- tion to authorize payments and 25% shopping through social media. ■ Millennials, people born between approximately from 1977 to 1995, are also tech-savvy with 46% using mobile wallets to make payments. However, they don’t want to wait for rewards, with 53% interested in loyalty programs that give smaller rewards more often. ■ Gen X, with birthyears between the mid-60s and early 1980s, are very value driven, with 69% saying their payment preferences are influenced by the asso- ciated rewards. ■ Baby Boomers, those born between 1946 and 1964, are not interested in digital payments. In fact, only 22% use mobile wallets, most likely because 53% are concerned that mobile pay- ments are not secure. These are interesting statistics, but what do they mean for loyalty strategy? To stay relevant to members, credit unions might want to consider: 1. Providing the opportunity to mone- tize loyalty currency in real-time or near-real-time. 2. Structuring rewards that may be smaller but offered more often. 3. Offering members an opportunity to contribute to local charities with loyalty rewards. 4. Creating a user-friendly mobile app and website for members to use. 5. Developing options for the reward program that allow members to customize their experience. The goal of a loyalty program should be a long-term relationship with the member that relies on regular engagement and true value-added service. Credit unions have an advantage over other financial institutions that may rely on offering the most up-to-date app features. Credit unions’ focus on meeting member needs allows them to go beyond a simple loyalty program with services that provide: ■ Financial literacy education; ■ Budgeting tools; ■ Member well-being; and ■ Community service opportunities. The unique mission of credit unions combined with a responsive loyalty program can further strengthen engage- ment and build solid relationships that lead to success for credit unions and their members. Hear more details about the current and future state of the loyalty industry for credit unions, as well as specific recommendations, fromMladen Vladic, Head of Loyalty Services, FIS by watching his full webinar Member Loyalty Through the Ages: Generational Payment Trends. One of the most important things to remember is that one- size-fits-all loyalty programs may not work for all credit union members. FIS recently completed the Generation Pay Study that included data from different age groups on payment preferences and preferences in general.