As Barclaycard acquires The Logic Group – are financial services getting serious about loyalty?by
Barclaycard’s parent bank, Barclays, is currently held in pretty low esteem by its own customers, and combined with the statistic that over half a million banking consumers have already switched their financial service provider in 2014, suggests the move is designed to confront the issue of customer retention.
A number of banks are renewing their focus on loyalty and engagement strategies as they attempt to halt the increased customer churn, and Barclays is evidently in as much need of building bridges with its customers as any of its nearest rivals.
The acquisition will give Barclaycard new payments capabilities as well as access to The Logic Group’s loyalty programmes and data insights solutions, to improve on the current reward scheme the credit card provider offers.
“The acquisition of The Logic Group - one of the most highly regarded businesses in its field – is a very exciting development for both businesses,” said Valerie Soranno Keating, chief executive of Barclaycard.
“The Logic Group brings a range of new capabilities to Barclaycard that support our strategy to deliver growth for our business and for our customers. There is a strong fit between our two businesses, most notably in our shared commitment to innovation and customer service and mutual recognition of the role of technology in driving change across the payments industry.
“As consumer and merchant expectations become ever greater and ever more sophisticated, the winners will be those businesses that are able to anticipate these expectations and respond quickest and most effectively. I am confident that the combined talents of our two teams will enable us to maintain our competitive position and meet our strategic ambitions.”
IBM’s senior product manager, Michael Tucker recently wrote on MyCustomer.com about the importance of banks providing a fully ‘omnichannel’ experience, as the number of consumers using mobile and internet banking continues to rise.
And with The Logic Group’s specialty lying with transaction processing capabilities from multiple sales channels (store, online and mobile) through a single platform, Barclaycard will hope it will be able to reengage and even drag back some of the customers feeling disenchanted with the brand.
Chris is Editor of MyCustomer. He is a practiced editor, having worked as a copywriter for creative agency, Stranger Collective from 2009 to 2011 and subsequently as a journalist covering technology, marketing and customer service from 2011-2014 as editor of Business Cloud News. He joined MyCustomer in 2014.