|
Research and Markets: Find Out How The Card Issuing Industry is
Becoming Increasingly Competitive and Commoditized Credit Card Customer
Satisfaction
(M2 PressWIRE Via Acquire Media NewsEdge)
RDATE:04072008
Dublin - Research and Markets
(http://www.researchandmarkets.com/research/1b9e37/credit_card_custom)
has announced the addition of Javelin Strategy & Research's new report
"Credit Card Customer Satisfaction: Effective Acquisition and Retention
Strategy Must Focus on Multiple Facets of the Relationship" to their
offering.
The card issuing industry is becoming increasingly competitive and
commoditized, with current economic conditions driving issuers to
implement more stringent controls surrounding lines of credit, and
product differentiation opportunities becoming negligible. Cardholder
acquisition and the overall growth in the portfolio, however, remain
the lifeblood of the business. This report, utilizing Javelin
quantitative consumer data and analysis, provides insight into consumer
preferences for selecting card issuers and also choosing a card for
payment transactions.
Specific attention is paid to six prominent issuers American Express,
Bank of America, Capital One, Chase, Citi and Discover. They provide
case studies for the issuer community as a whole and reflect sufficient
breadth to represent cardholder satisfaction levels for various
features. Readers of this report responsible for card product
development, marketing, and rewards program management can utilize the
information and analysis to enhance cardholder acquisition, increase
loyalty among existing cardholders, and drive usage for their card
products.
Primary Questions
- What card features resonate with cardholders in selecting an issuer?
- How can issuers alter acquisition strategy to more effectively cater
to cardholder desires?
- What drives consumers to use a particular card for purchases?
- How can issuers retain existing cardholders based on various card
features?
- How can issuers target cardholders for more effective and profitable
relationships?
Methodology
This report is based on data collected online from a random-sample
panel of 2,957 respondents, in September 2007. The survey targeted
respondents based on representative proportions of gender, age and
income as compared to the overall US online population. Overall margin
of sampling error is 1.80 percentage points at the 95% confidence
level. Generation Y, Generation X and Baby Boomers are used to define
consumers into age cohorts. These groups are defined by birth date:
Baby Boomers are 1945-1965; Gen X is 1961-1981; and Gen Y is 1979-1999.
Key Topics Covered:
Overview
Primary Questions
Findings and Analysis
Methodology
Executive Summary
Top Issuers Demonstrate Strong Cardholder Satisfaction Rates
Relative Satisfaction for Certain Features Varies by Demographic and by
Issuer
Protection Against Identity Fraud: Perception versus Reality
Importance of Security by Generation Emerges as Key Differentiator
Address Gaps between Importance of Security and Satisfaction Levels
Directly
As Fear of Data Breaches Rise, Security at Purchase Increases in
Importance
Boomers More Concerned with Protection at the Point of Sale
Gaps in Security Satisfaction on an Issuer-by-Issuer Basis
Online Features Drive Retention and Efficiency in the Cardholder
Relationship
Consumer Satisfaction with Online Features Levels Exceed Expectations
Online Features Not Critical Differentiator in an Acquisition Strategy
Online Features Factor into Card Choice at the Point of Transaction for
Gen Y
Customer Service: Consumers Depend on Issuers to Fix their Problems
American Express Cardholder Satisfaction Exceeds Importance
Customer Service by Generation: Valued More by Baby Boomers
Customer Service Satisfaction Trails among Younger Generations
Grace Period as a Differentiator: Potential for Top-of-Wallet Card
Creation
Some Consumers Rate Grace Period Important when Selecting Issuer
Leverage Grace Period Satisfaction and Importance Equivalence to
Structure Offerings
Cardholder Satisfaction with Grace Period by Major Issuer Exceeds
Importance
Rewards: Focus on "Dissatisfaction" Leads to Acquisition Opportunities
Surprisingly, Importance of Rewards in Issuer Selection Less Important
Overall
Affluent Consumers Show Extreme Preference for Rewards as Top-of-Wallet
Feature
Satisfaction with Rewards Corresponds with Importance by Income Group
Rewards Dissatisfaction among One of Four Leaves Door Open for
Competitors
Demographic Breakdown of Satisfaction Levels for Various Features
How Do Rewards Compare with Other Desired Features in Choosing an
Issuer?
Baby Boomers Value Security and Service
Gen X Security, Interest Rates and Service
Gen Y Interest Rates, Security, Service, and Rewards
Interest Rates Resonate for all Decisions' Issuer and Purchase Alike
Some Cardholders Dissatisfied by Interest Rates
Appendices: Additional Consumer Data and Data Cuts
Preferred Features for Card Usage Differ Slightly: Different
Acquisition and Usage
Generation Strategies
Must Be Employed
Different Card Portfolios Reflect Rewards Importance
Issuers' Rewards Cards Range from 40% to 90% of Base According to
Cardholders
Most Consumers Earn Rewards Points: Relatively Insignificant
Generational Differences
American Express and Discover Cardholders Expect Specific Reward Types
Non-online Shoppers Skew Somewhat toward Cash Back Rewards
Non-online Shoppers Show Slightly Higher Satisfaction with Credit Card
Rewards
Variation in Importance of Rewards on an Issuer-by-Issuer Basis
Online Features Satisfaction Steady among all Generations
Focus on Gap Between Satisfaction & Importance for Rewards Strategy
Related Research
Companies Mentioned
Companies Mentioned:
American Express
Chase
Bank of America
Citi
Capital One
Discover
For more information visit
http://www.researchandmarkets.com/research/1b9e37/credit_card_custom
CONTACT: Laura Wood, Senior Manager, Research and Markets
Fax: +1 646 607 1907 (from USA)
Fax: +353 1 481 1716 (from rest of the world)
e-mail: press@researchandmarkets.com
((M2 Communications Ltd disclaims all liability for information
provided within M2 PressWIRE. Data supplied by named party/parties.
Further information on M2 PressWIRE can be obtained at
http://www.presswire.net on the world wide web. Inquiries to
info@m2.com)).
Copyright ? 2008 M2 Communications Ltd.
[ Back To wimaxtoday.tmcnet.com's Homepage ]
|