Why Your Bank Needs a ‘Crown & Anchor Society’
By EJ Kritz, Chief Experience Officer at DBSI
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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?
Bank of America Just Did Something Interesting
Bank of America recently made a change to its rewards strategy which is unquestionably a step in the right direction.
Its old Preferred Rewards program essentially began with a $20,000 balance requirement. The redesigned program opens rewards to customers with an eligible checking relationship — making roughly 30 million additional customers eligible. For those of you reading this from a smaller company, focus less on the number of customers and rather on the percentage of the total. In this case, we’re talking about just shy of 45% of Bank of America’s customers now find themselves eligible for rewards.
Now, it’s not perfect. As one Bank of America customer shared with me, “I lost benefits I used like foreign ATM fees, but they gave me stupid streaming services I already get free from people like Walmart. I’d rather you let me pick the benefit that’s more applicable to my family.”
On Jim Marous’ Banking Transformed podcast, Bank of America’s Shikha Narula explained something incredibly simple:
“Opening a checking account is the most likely first step someone takes…when they’re thinking about banking somewhere new.”
Exactly.
Key insight: Because checking isn’t really about checking anymore. It’s where your financial life happens but that doesn’t mean it’s the heartbeat of the relationship. Bank of America says it’s already seeing changes in behaviors that matter: customers moving direct deposits, increasing card transactions and changing which card becomes top-of-wallet.
In the battle for primacy (which should be the #1 priority in any strategic planning session), that’s the point.
The Rewards Aren’t Just Rewarding Loyalty. They’re Creating It.
Personally, I need something to chase and that thing I’m chasing, it better be worth it. An extra free cocktail… better access to show reservations… let me board faster so I can get the good seats by the pool.
Imagine opening your bank’s app tomorrow and seeing this:
PREMIER STATUS
1,575 / 2,000 Relationship Points
425 points until Elite
Now, it’s on like Donkey Kong, provided your customer knows and values what being “Elite” represents.
Now show me how to earn those 425 points.
Move my direct deposit? 500 points.
Add automatic savings? 100.
Use my card 15 times this month? 100.
Add my card to Apple Pay? 50.
Meet with a banker for an annual financial review? 250.
Suddenly your bank isn’t begging me to buy another product.
I’m trying to level up. Maybe I’m even coming to you for advice on how to reach that next level. We’ve now entered a completely different phase of our relationship. I’m now dependent on you. Not because you hold my money… but because you have something I want. Status and the perks that status represents.
Key insight: Royal Caribbean didn’t buy my loyalty with a suitcase full of cash. I got things that make me feel good. I don’t need to question whether Royal Caribbean values my business because the expression of gratitude is now automated through pre-cruise discounts at specialty restaurants, chocolate strawberries in my stateroom with a note on check-in day, and understanding my personal preferences from sailing to sailing.
Give customers ATM fee reimbursements. Better card rewards. Subscription credits. Preferred service like a dedicated call center line. Experiences at the venue with your naming rights. Early access to something special.
Make the next level feel like something because if you’re anything like me, you love being offered the stuff money can’t buy.
Let’s not lose sight of the most important part: Help me see (and proactively recognize) my progress.
Stop Assuming Your Richest Customer Is Your Best Customer
This is where banking’s traditional approach gets especially shortsighted. (I learned that word from Wedding Crashers and still love it.)
A 28-year-old making $70,000 who has direct deposit, a credit card, savings, P2P, a car loan and 30 monthly transactions with your institution may be infinitely more strategically valuable than someone who dropped $100,000 into a CD because your rate was six basis points better.
One has a relationship.
The other is a rate shopper who is perfectly happy to take their money across the street for an extra point.
Actually, let’s be real: One is eventually moving to Florida or just… you know… moving on. The other has a long and profitable runway with your financial institution.
Cornerstone Advisors has described today’s checking account as a “paycheck motel” — money checks in and quickly checks out, often heading toward fintechs, investment platforms and high-yield savings accounts.
Bottom line: That’s the battle. Not account ownership. Primacy. This is why financial institutions don’t need another program that rewards wealth. They need to make their customers WANT something.
Royal Caribbean figured this out years ago. Every time I sail, even if I don’t level-up I know I’m at least making progress towards something I value. Frankly, it’s a badge of honor. “I just hit Emerald,” somebody tells me at the pool. “Cool, bro… I’m only 48 nights away from Diamond Plus. Hold my beer.”
Do I genuinely love Royal Caribbean? Sure. I suppose I do. Am I fairly certain I would have a better experience on another cruise line at a comparable price point? Sure am. But Royal Caribbean got me in, got me early, and got me hooked on status. This leads me to one undisputable fact:
I would cruise less with Royal Caribbean if it weren’t for Crown & Anchor.
Which is precisely the point.
Your customers should know what level they’re on, what the next level is, and what behaviors will get them there.
And then your bank should get the hell out of the way and let them chase their points.
