The Financial Brand: Why Your Bank Needs a ‘Crown & Anchor Society’

E.J. Kritz, Chief Experience Officer at DBSI, makes the case in his latest Financial Brand feature that most financial institution loyalty programs reward balances when they could be rewarding the everyday behaviors that build a primary relationship.

Read the full article on The Financial Brand.

I have a cruising problem.

Not an actual problem. I don’t need an intervention. (OK, maybe I do.) But if Royal Caribbean wants to sponsor one, preferably aboard an Oasis-Class ship, I’m available.

Some people hate cruising, which I totally get. But me? I love walking onto a ship and knowing that, for the next three to seven days, I’m living la vida. I love waking up in a new country every morning. I love the strangers I meet onboard who become friends. There’s (almost) no aspect I dislike.

But Royal Caribbean has figured out something else about guests like me.

I love points. Actually, that’s a lie. I don’t love points. I love status and the perks that come with it. Points are simply the path.

I’m a Diamond member of its Crown & Anchor Society. I know what I get, especially the four free drinks per day. I know what the next level is and I know exactly what it will take to get me to Diamond Plus by the end of 2027. Maybe early 2028 if life gets in the way.

Which means Royal Caribbean has accomplished something every financial institution would kill for:

They’ve made me WANT to consolidate my relationship.

Could I cruise Celebrity? Absolutely. Heck, my points would even transfer over.
Norwegian? Sure.

Carnival? Let’s not get carried away.

But every time I book another Royal Caribbean cruise, I’m not just buying a vacation. I’m making progress and leveling up like my 13-year-old playing a video game. Even as I’m writing this, my monthly Crown & Anchor statement hit my inbox and I grinned without realizing it.

Banks Reward Wealth. Royal Caribbean Rewards Behavior.

I actually find this concept funny. Banks advertise for you to shift your behavior, but they seldom turn around and reward it. Chase’s most recent ad campaign focuses on visiting the branch, but who has that built in as a way to earn points?

The closest I could find? Kudos to Everence who offers a youth rewards program in which visiting a branch earns you points. I’ve found no such program for adults.

Most bank and credit union loyalty programs are (respectfully) spectacularly boring:
Have a $20,000 balance? Congratulations! You’re Silver.

Have $50,000? Gold!

Have $100,000? Welcome to Platinum, Mr. Rockefeller. Please enjoy these free checks nobody has ordered since 2009.

Key insight For decades, banks have largely decided that the best indication of customer value is how much money someone currently has sitting with them, loan balances, or even swipes of a debit card.

As I stepped off Harmony of the Seas recently, I couldn’t help but ask myself: What if our industry is measuring the wrong thing? What if the stronger (and yes, more profitable) customer isn’t the one with a fat balance? What about the customer who lives paycheck to paycheck but in the meantime, tells everyone they know those magical words: “I love my bank.”

Their paycheck comes to you.

They pay bills through you.

They use your debit or credit card.

They send money through Zelle.

They have automatic savings established.

They use your digital wallet.

They come into a branch and meet with a banker from time to time… even if only because they ran out of pens at home.

In other words, they actually bank with you.

Why aren’t we rewarding THAT?

Continue the article on thefinancialbrand.com.