RMS in the News

Platform Doubles Down on Incentives

3/20/2006 — Small Business Banking News

Rennhack Marketing Services, a Dallas-based provider of incentive programs, in mid-February unveiled Banking Bonus, a web-based rewards platform that banks can use to target current and potential customers, as well as to motivate employees.

The rewards platform allows customers, including small businesses, and employees of banks to earn points that can be redeemed online for Walt Disney cruises or 1,500 other brand-name products, including Apple iPods or John Deere riding mowers.

HSBC, Charter One, Key Bank, City National Bank, and Fifth Third Bank offer Rennhack's gift-based programs.

Rennhack is marketing the platform as a means to entice customers to refer friends to the bank or to sign up for services.

Although the platform is not specific to small business banking, "considering small business customers are more profitable to a bank [than consumers], making a concerted effort to retain them with Banking Bonus will prove profitable in the long run," said James Gresham, Rennhack's president and chief executive.

Banks need to extend beyond offering cash, Gresham said. "When banks recognize they need an incentive, they [usually] offer cash, which does not create the trophy value of a branded item," Gresham said. "We've proven customers are more likely to respond to that trophy value."

Banking Bonus is an effective retention tool because it offers incentives on two platforms — up-selling or cross-selling, he said.

"The easiest method for retention is to have more accounts or hooks in a person," Gresham said. "This immediate reward for the suggestive sell [by employees] ensures customers are being informed of all products and services."

Banks can run the program through Rennhack's web site or contract the company to build a custom web site. Rennhack can also administer the program for a monthly fee, details of which Gresham declined to disclose. The company provides ongoing support, including research.

"ConsumerTrac is our proprietary research tool to find which incentives customers find motivating," said Gresham. Using the tool, Rennhack conducts interviews with customers at least once a year to fine-tune its offers.

The ability for existing customers to earn gifts more than once during the banking relationship is attractive to small businesses such as Fast Frame Expert Picture Framing, in Boston.

"I want my personal and business accounts with the same bank, but I'm lazy," said Peter Crossley, Fast Frame's owner. "This sounds like it might be the kick in the pants I need." —C.N.