A community bank uses a rewards program to differentiate itself.

• Position: New Products

A Maine community bank in a highly competitive market-place was able to leapfrog its larger competitors by introducing a far-reaching rewards program. The program came from Rewards NOW, Dover, N.H.

Bar Harbor Bank & Trust (assets: $840 million; 12 locations), Bar Harbor, Maine, has launched two of RewardsNOW's programs--the Pik n' Clik automated rewards program for new bank customers and Full Spectrum Rewards, which turns virtually every financial product the bank offers into a way to earn rewards.

With Pik n' Clik, when customers open a new debit card and checking account at Bar Harbor Bank & Trust, they are set tip with a reward account and credited with an initial number of points. Customers can redeem those points immediately for a gift, or save them for later use. The Full Spectrum program lets customers accumulate additional points through the business they transact with the bank on an ongoing basis.

"We were looking for a way to provide added value for our customers," says Cheryl Curtis, senior vice president of marketing for the bank. "Many banks offer free checking with a free gift, but we wanted to do something different that offered more choice and continued to provide value long-term, not just at the time of a new account opening.

"Our Harbor Points program rewards both new and existing customers, while many other banks' programs are designed only to attract new customers."

The new rewards program is a differentiator for the bank which faces a highly competitive environment.

"There are many banks in this area, serving a relatively small population," explains Steve Leackfeldt, senior vice president of retail banking...