The search for innovative card products has been a major focus in the past decade. However, the importance of customer retention for credit card issuers has grown in the wake of the global economic slowdown. The switch towards debit and cash spending in mature markets, the emergence of a range of new payment channels, increase in legislation and the continuing trend for customers to reduce consumption all present significant obstacles to the credit card industry.
Credit card issuers in the US took drastic measures during the recession, such as making it harder for consumers to compare credit card offers online and more expensive to transfer balances to other providers. Issuers also cut back their cooperation with comparison sites and raised fees for balance transfers. While such actions were stop-gap measures, and not necessarily indicative of mature retention strategies, they do attest to the increasing importance being placed on card retention in today's economic climate.
• Credit card business normally provides a return of three to four times the cost of equity in markets like the UK and the US.
• Though the profitability of the US credit card industry declined a little during the recession, profitability started showing signs of recovery to pre-recession levels in 2012.
• Credit and debit cards are still used for four out of five payments online, but that share is steadily declining.
• Successful retention strategies encompass an organizational vision including an agreed set of goals to which all components of the credit card organization agree including, profit, and other key metrics.
• The report illustrates retention strategies for acquisition, portfolio management and anti-attrition segments of the credit card life cycle
• It includes examples of best practice programmes, strategies and channels that have been used to support each phase of the credit life cycle with further analysis of the strategies that worked, the strategies that didn't, and why
• It assesses and recommends which data tools you can use in order to improve retention
• It demonstrates how marketing, customer service and risk management can be better aligned to work together more effectively to enhance retention
• It shows how marketing can be improved, with special emphasis on how better segmentation can yield better results
Reasons to Buy
• Gain insight into the various credit card retention strategies adopted by issuers across globe
• Measure the success of retention strategies
• Understand the relevance of credit card customer retention
• Develop credit card customer retention strategies and measure ROI for the same
• Understand and develop suitable product and pricing strategies for customer retention
Click for Report details:Credit Card Retention Strategies