A look at payments and card innovation with Discover's Geeta Chandan

Loyalty and incentive marketing are two of the most vital ways card companies connect with consumers. As payments become more digital, there are new opportunities and challenges. Geeta Chandan is vice president and head of product and loyalty at Discover, and is at the center of these issues. In a live Leaders session at Amerian Banker's Payments Forum. Discover's Geeta Chandan discusses these issues.

American Banker: Welcome. This is Leaders from Payments Forum in San Diego. I'm John Adams from American Banker. Our guest is Geeta Chandan, vice President of Loyalty and Product at Discover Financial Services. Geeta, thank you for joining.

Geeta Chandan: Great to be here. John.

AB: Can you tell us a bit about your role and what you do at Discover?

Chandan: I head up as the product on loyalty team at Discover. I've been there for about 16 years, basically doing all parts of the marketing and roles on the issuing side, ranging from new account acquisition, portfolio management, business development, and now I joke that I have the best job because I tend to give customers cash back for places they shop.

AB: How has loyalty changed over the past couple years as payments has become more digital, more omnichannel?, What are some of the changes that you're seeing in terms of consumers and what they're looking for?

Chandan: One of the biggest trends we've seen, which is not new, but it's definitely become stronger, is around flexibility and simplicity and control. These are not new trends, but something especially post-pandemic we've seen really pick up. We've had customers who really expect to be able to use their rewards and earn their rewards in places that match their life, lifestyle and their journey, depending on where they are. For example, they might want to use their rewards to pay off their bill one month and next month they might want to use it at point of sale at Amazon, and we have to make sure that we are, as you mentioned, across all these different channels, all these different outlets where customers want to use their rewards.

AB: Are there differences between one channel and another? If someone is at a store or on an e-commerce site, do they look for different things from a loyalty program?

Chandan: At the end of the day, the customer really wants a seamless, intuitive experience. That's true across channels. Mobile and digital have of course moved the bar where everything is expected to be more real-time and instant. Consumers really don't want much of a lag when they are trying to use rewards, especially at checkout or point of sale. However, that being said, at least at Discover, we try and make sure that our experiences, even whether they could be on the phone, on browser, we are really trying to make them as seamless as possible and have the same level of customer service across all of our channels.

AB: Are there one or two products or initiatives that Discover has released in the past year and what makes you excited?

Chandan: Discover's mission is to help our customers achieve brighter financial futures and really manage debt better. So we've made it a lot easier for you to redeem your rewards towards your monthly payment. For example, we launched automatic statement credit, which doesn't sound like much, but it's essentially just taking that effort out of remembering to put your rewards towards your billing cycle every single month. So what we try and do is make that automatic, you can just turn that on and even if you've earned a few dollars or hundreds of dollars, it would go directly towards your bill. The second thing that we've been really working on is trying to make redemption a lot easier at point of sale, especially for online checkout Rewards have really become a payment currency I would say, in the last few years. So that's something that we really focused on trying to make that entire experience easier.

AB: As new generations enter the market, are they using rewards differently? Do hey have different demands or interests?

Chandan: The expectation of flexibility and speed and convenience is even higher with Gen Z, especially as digital natives. They really want everything to be at the fingertips near no waiting time. But I would say in terms of, for example, channels of redemption, we do see a lot more customers in Gen Z using the rewards at point of sale. We see them being a lot more active in digital wallets, really wanting to make sure that they're earning rewards in the spaces that they're shopping and the way they're spending it. So for example, for the first time last year, we included digital wallets in our 5% program and we saw a lot of adoption there. And then I would say we are still seeing even within a student card, a healthy level of redemption towards their monthly payment and their bills. So that's something that's continues to be important regardless of age.

AB: How is data improving the ability to match the right program to the right customer groups?

Chandan: Data has become even more important as customer expectations have changed. I think we've heard a lot of discussion during these sessions at Payments Forum around privacy and security. But we also know that younger generations are more willing to share their data, but they assume that it's secure. And so we have to make sure we are holding up to that promise, and then the way we use that in models and then making sure it's the right offer, the right channel becomes even more important. I think the industry overall has done a lot there, but there's more that to be done in that space to really get the timing and the offer. So that's something that I think we're still working on.

AB: How do loyalty programs work n an environment like this where there's some economic uncertainty, inflation, and higher interest rates?

Chandan: At Discover, we really feel like cash is king. It's our main currency. It has really stood the test of time in terms of flexibility and simplicity, and especially in an environment where there are concerns about inflation and recession. We've seen a lot of success with customers knowing that their dollar in reward in rewards is still a dollar. So it's a currency that we believe will continue to provide a lot of value regardless of the climate we are in, and especially in this environment right now, we are seeing a lot more redemptions towards cash, redemption towards added value. So for example, with gift cards, we are seeing some of those redemption methods tick up. And the second thing is we really try and provide value, added value to our customers for categories of their shopping, regardless of whether there's inflation or recession. So things like gas and groceries, the basics that you need to spend in, and that's where we want to make sure we continue to reward our customers.

AB: And in terms of merchants, what are some of the things that they're looking for that may be different than in years past?

Chandan: Merchants are really interesting right now. They have their own loyalty programs and their own payment methods, their own wallets, and I think what they're really looking for is partnership. We've had a lot of success of course with having our network. And we've seen a lot of success with combined loyalty programs and partnerships where if we can combine the best of both the brands for the customer, that has a lot of value. So merchants are actually really looking to figure out how can rewards be integrated into the checkout experience, how can it be done seamlessly? Obviously, nobody wants to lose a sale at a point when a customer's trying to check out. So they're really looking for, I would say, issuers and networks to come up with the right solutions at point of sale for how to use your rewards. And second, if we can figure out joint experiences and partnerships where they're in complimentary spaces, we are seeing a lot of demand for that as well.

AB: In terms of experiences, what kinds of experiences are or are people interested in now that might be new?

Chandan: We're looking at wallet provisioning, making sure the cards are at the top of wallet regardless of what kind of wallet it is. I would say ways to earn and redeem are things we are seeing a lot of. We also see a need to work on geographical location-based marketing. Customers don't really have patience for getting that stuff wrong. If you're going to do it, you have to do it in a way that's accurate and has an element of surprise and delight to it. So we are seeing a lot of work in those spaces as well.

AB: You mentioned you've been at Discover for 16 years. What are some of the things you've done there and how has that helped prepare you for the role that you're in now?

Chandan: So Discover's been an amazing place to work. I've stayed here for 16 years because of the internal mobility the organization provides. So at this point, I would say I've worked in a lot of the different pieces of the issuing business, ranging from new account acquisition to portfolio management. I spent quite a few years on the digital side working on our online experiences and mobile experiences. And then business development and strategic partnerships have also been an important part of my role in the past. That has helped me prepared for this current role because that all comes together for customer loyalty. Customers apply for a new card account a lot of times because they want to earn the rewards. And then managing the portfolio, to make sure we are in the right place where they're shopping. That all ties in together with partnerships. So I feel like this role really brings all of that together.

AB: How large is your team?

Chandan: My direct team is about 30 people and its' an awesome team. When you think about all the experiences and all the different efforts that need to happen across the organization to manage loyalty, the team is so vast because it goes across technology, finance, and analytics. So we have a really large cross-functional team. We are just focused on putting out great experiences.

AB: In terms of recruiting, do you have people with experience in payments and financial services, as well as people who don't have experience in finance?

Chandan: We have people form in and outside of finance. In a space like marketing and customer loyalty, industry experience is always great, but we always look, we're looking for talent that really thinks about the customer focus, that's what it's all about. So really thinking about what would be best from an experience, from a perspective to really create the most seamless, intuitive experience for the customer. That's really top of mind. So for us, whether that's from a retail experience or agency experience, all of that sort of ties in really well. Of course, like I said, industry experience always helps, but not something that we are always specifically looking for.

AB: There's been a lot of things that have happened over the last couple of years that has changed work patterns. What have you learned over the past couple years about leadership and communication?

Chandan: The last few years have changed lives for all of us. At the end of the day, it's important to understandhow your team's lives have changed, and how commitments have changed over the last few years, as well as how preferences have changed. Being flexible, trying to figure out how to get the best of both working at home and in the office. For me, it's really about being human, being authentic. I try and make personal connections with my team, be a champion for professional growth. I think that continues to be really important and it becomes even more challenging to do when you have employees that are fully remote. So how do you and a hybrid workforce work together? That's really been some of the ways I've managed the team.

AB: And looking ahead, are there one or two things that you're particularly excited about? It could be your department, your company, the industry in general. What are you looking forward to in the next year to two years?

Chandan: There's so much opportunity in the loyalty and payment space. Like I said, the possibility of making experiences even more real time, more seamless. I think that is very energizing to me. I think we can do a lot around being more present in areas where customers are already shopping. We heard earlier in, maybe it was yesterday or today in a panel, that customers don't really think about their payment method. You are thinking about your purchase and what you want. At the end of that transaction, you're not really thinking about how you're paying. And if we can make that entire experience more seamless, but then also more delightful, it will provide that extra added value to them. Make it even easier to connect your rewards, redeem your rewards for the trip you've been wanting to take, or that purchase you've been wanting to make. I think that is energizing to me.

AB: Geeta. Thank you for joining us today. Thank you for attending the conference and enjoy the rest of the event.

Chandan: Of course. Thank you, John. Thank you.