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I have a cruising habit.
It is not exactly a problem. I do not need an intervention, although I would gladly accept one if Royal Caribbean hosted it aboard an Oasis-class ship.
Many people dislike cruises, and that is understandable. I enjoy nearly everything about them: stepping aboard a ship and knowing I have several days to relax, waking up in a new destination, and meeting fellow travelers who often become friends.
Royal Caribbean, however, has mastered something beyond the vacation experience. It understands that some customers are motivated by more than the product itself. They want recognition, progress and meaningful status.
I am a Diamond member of the cruise line’s Crown & Anchor Society. I know the benefits I receive, including four complimentary drinks each day. I also know what is required to reach Diamond Plus and have a rough plan for getting there by the end of 2027 or perhaps early 2028.
That means Royal Caribbean has accomplished something many financial institutions would value enormously: It has made me want to concentrate more of my business with the company.
I could sail with Celebrity Cruises. I could try Norwegian or Carnival. But when I book another Royal Caribbean trip, I am not simply purchasing a vacation. I am moving closer to the next membership tier.
It feels like leveling up in a video game. Even the arrival of my monthly Crown & Anchor statement can make me smile.
Banks Reward Wealth. Royal Caribbean Rewards Customer Behavior.
The difference is striking. Banks frequently ask customers to change their behavior, but they do not always reward those actions in a visible or motivating way.
Traditional loyalty programs often look like this:
- Maintain a $20,000 balance and become Silver.
- Reach $50,000 and move to Gold.
- Hold $100,000 and qualify for Platinum, along with benefits that may have little practical value.
For decades, financial institutions have largely measured customer value through deposits, loan balances or card spending. Those metrics matter, but they do not always identify the customer with the strongest long-term relationship.
Consider a customer who may not have a large balance but uses the institution for nearly every part of daily financial life. That customer may:
- Receive a paycheck through direct deposit.
- Pay bills from the account.
- Use the institution’s debit or credit card.
- Send money through a peer-to-peer payment service.
- Maintain an automatic savings plan.
- Add the card to a digital wallet.
- Visit a branch or speak with a banker when guidance is needed.
That person is actively banking with the institution. Why should loyalty programs reward only the customer with the largest account balance?
Bank of America Is Expanding the Definition of Loyalty
Bank of America recently took a notable step by changing the structure of its Preferred Rewards program. Previously, the program was primarily associated with a minimum balance requirement of about $20,000. The redesigned approach allows customers with an eligible checking relationship to qualify, potentially opening the program to roughly 30 million more people.
For smaller financial institutions, the important lesson is not the total number. It is the percentage of customers who become eligible. In Bank of America’s case, nearly 45% of its customer base can now access some form of rewards.
The strategy is not perfect. Some customers have expressed frustration that certain benefits, such as foreign ATM fee reimbursements, were replaced with rewards they may already receive elsewhere. That feedback points to an important opportunity: Customers should have more choice in selecting the benefits that matter most to their households.
On Jim Marous’ Banking Transformed podcast, Bank of America executive Shikha Narula highlighted a straightforward truth: Opening a checking account is often the first step a person takes when considering a new banking relationship.
That relationship, however, extends far beyond the checking account itself. It includes direct deposit, card usage, savings activity and the products customers use most frequently.
Bank of America has already reported changes in behaviors such as customers moving direct deposits, increasing card transactions and making a particular card their primary payment method. Those actions are important in the competition to become a customer’s primary financial institution.
Rewards Should Create Loyalty, Not Simply Recognize It
A successful rewards program gives customers something meaningful to pursue. The benefit could be an additional complimentary service, priority access, a better experience or a perk that feels exclusive.
Imagine opening a banking app and seeing:
PREMIER STATUS
1,575 of 2,000 Relationship Points
425 points until Elite
That type of progress indicator can transform the customer relationship. Once customers understand the value of the next tier, they have a reason to engage more deeply.
The app could show exactly how to earn the remaining points:
- Move direct deposit: 500 points.
- Establish automatic savings: 100 points.
- Use the bank card 15 times in a month: 100 points.
- Add the card to a digital wallet: 50 points.
- Complete an annual financial review with a banker: 250 points.
At that point, the financial institution is not simply trying to sell another product. It is helping the customer advance toward a goal.
The customer may even ask a banker how to reach the next level. That changes the relationship. The institution becomes valuable not only because it holds the customer’s money, but because it provides access to status, convenience and benefits the customer wants.
Make the Benefits Visible and Personal
Royal Caribbean does not need to buy loyalty with large cash rewards. It creates loyalty through small, consistent experiences that make customers feel recognized.
Those experiences can include pre-cruise discounts, a welcome gift, personalized service and the sense that the company remembers preferences from one trip to the next.
Financial institutions can apply the same principle with benefits such as:
- ATM fee reimbursements.
- Enhanced card rewards.
- Streaming or subscription credits.
- Access to a dedicated service line.
- Invitations to exclusive local events.
- Early access to special offers or experiences.
- Personalized financial planning sessions.
The benefit itself matters, but so does the way it is presented. Customers need to see their current status, understand what comes next and know which actions will help them progress.
Progress should be easy to find in the mobile app, online banking platform and regular account communications. Recognition should also happen automatically, rather than requiring customers to ask whether they have qualified for something.
Your Wealthiest Customer May Not Be Your Best Customer
This is where the traditional banking model can become shortsighted.
A 28-year-old earning $70,000 may have direct deposit, a credit card, savings, peer-to-peer payments, a car loan and dozens of monthly transactions with one institution. That customer may be far more strategically valuable than someone who deposits $100,000 into a certificate of deposit solely because the institution offers a slightly higher rate.
One customer has an integrated relationship. The other may simply be searching for the best rate and willing to move the money when another institution offers a better deal.
Cornerstone Advisors has described the modern checking account as a “paycheck motel,” where money arrives and quickly leaves for fintech companies, investment platforms and high-yield savings accounts.
That is the real competitive challenge. Financial institutions should not focus only on account ownership. They need to become the customer’s primary financial relationship.
Build a Banking Loyalty Program Customers Want to Use
Royal Caribbean understood this dynamic years ago. Every sailing moves a customer closer to the next membership tier. Even when a traveler does not level up immediately, the trip still contributes toward a benefit they value.
That sense of progress can become a badge of honor. Customers compare status, celebrate milestones and talk about how close they are to the next level.
The same psychology can work in banking, provided the rewards are relevant and the program is easy to understand.
Customers should know:
- Which status level they currently hold.
- What benefits come with that level.
- What the next level offers.
- How many points they need to advance.
- Which everyday behaviors will earn additional points.
The goal is not to copy a cruise line. It is to borrow the underlying strategy: Reward the behaviors that build a deeper relationship, make progress visible and give customers benefits they genuinely value.
Royal Caribbean’s Crown & Anchor Society demonstrates how status can influence future purchasing decisions. A customer may enjoy other options, but a clear path toward recognition can make one brand the preferred choice.
That is the opportunity for banks and credit unions. Stop assuming that the richest customer is automatically the most valuable. Reward customers who actively use the institution, make progress easy to track and create a loyalty program people genuinely want to pursue.
Source: Thefinancialbrand.com