Tillo releases its "Bridging the Loyalty Gap: Consumer Insights for Fintech Engagement and Growth" study, unveiling that 68% of consumers feel no loyalty to fintech companies at this time. The report, which includes insights from over 4,000 U.S. and UK consumers, sheds light on the critical role that incentives and rewards play in shaping and growing customer retention and loyalty within the industry.
Notably, 26% of respondents expressed distrust towards fintech services, with the most significant trust deficit in the cryptocurrency sector. The findings indicate that a sizable segment of consumers are disengaged, giving fintechs an excellent opportunity to bring in new clients and strengthen their bonds with current ones.
"Fintechs can close this 'loyalty gap' by using incentives and prizes, especially gift cards, which can convert skeptics into new adopters and convert infrequent users into devoted supporters," says Alex Preece, CEO and co-founder, Tillo. "Gift cards are the most popular and appealing reward type across all demographics, highlighting their potential as a crucial strategic asset for fintech companies looking to increase their market share and profitability."
Key Takeaways:
- 38% of those surveyed have not yet engaged with fintech companies, highlighting substantial potential for growth. Only 32% of consumers feel loyalty towards fintech brands.
- Over a quarter of respondents expressed distrust in fintech services. Of all the services included in the survey, respondents had the highest distrust of cryptocurrency, exposing opportunities for education and rewards to encourage adoption.
- Fintech was the least popular loyalty category among industries with loyalty programs, which also included grocery, hospitality, beauty & retail, and travel & leisure. Fintech, which averages 1.04 memberships per consumer, compared to grocery loyalty programs' 2.08 memberships, can learn from these other industries with more popular loyalty programs.
- 57% of respondents surveyed consider sign-up incentives and loyalty rewards to be influential factors in their choice of fintech service providers, with 19% of consumers more likely to try a fintech product or service if they are offered an incentive or it has an associated loyalty program.
- Gift cards stand out as the most universally attractive form of reward across all demographics, with an overwhelming 68% of consumers considering them as an enticing reward or incentive. The next most popular forms of rewards in the US were brand discounts and premium tangible features, respectively.
