Flagstar starts points-based scheme
US-based Flagstar Bank has started running a new points-based loyalty programme.
Flagstar Rewards replaces a less flexible loyalty programme the bank had in place before and runs on the Alchemy rewards platform supplied by Kobie Marketing.
The programme now offers experiential rewards, travel rewards and the ability to pool or share points, which are earned when customers use their Flagstar debit cards — 1 point for every US$3 spent when they sign at point of sale, and 1 point for every US$10 when they key in their PIN number.
“We changed to our new program with Kobie because we had the opportunity to enhance benefits for our customers,” said Bev Carter, senior VP of retail banking for Flagstar. “One of the things we like about this system is that it is easier to use: Everything is automatically in your account, and you can see it on the rewards website.”
A number of small enhancements have also been added. For example, points now expire after three years, rather then the previous two-year limit, points can be earned more quickly, and there are more gift options available when customers redeem points.
Flagstar has already started promoting the new programme to existing customers through direct mail, and since launching in May, Flagstar Rewards has accumulated 1,800 active members. The bank will be measuring customer use of the programme, their feedback, and points redemption to gauge its success.
Kobie has also worked with Bank of America and RBC Bank, as well as non-bank clients like Verizon, Barnes and Noble and CBS Sportsline.
As of March 31, Flagstar operated 177 bank branches in Michigan, Indiana and Georgia and 61 home loan branches in 18 states.