US financial institutions will spend $18.4 billion on loyalty and rewards programs in 2010 according to a Boston research group.
That amount is up dramatically from $10.3 billion spent in 2006.
The report was prepared by Aite Group LLC, an independent research and advisory firm focused on issues affecting the financial services industry.
"In 25 years, rewards have arisen from marketing gimmick status to a paramount competitive force in financial services and other industries," Gwenn Bezard, an Aite Group research director and the author of the report, said in a statement. "The reward industry is shifting from pushing one-size-fits-all rewards to delivering highly personalized rewards through advanced segmentation. Junk goods manufacturers are out, and PhD's are in."
(By Chris Reidy, Globe staff)
