The Power of Points and Partners: How to Earn Credit Card Customer Loyalty
By Jacqui Chin
A recent survey of 143 large US companies revealed that only 17 percent of businesses earned a strong (or better) loyalty rating from their customers.
None of these were credit card companies.
This Lafferty Group report is an essential tool for all types of businesses looking to gain customer loyalty through credit cards; whether a bank or an industry player such as a retailer, airline or coalition rewards programme.
It will provide you with the insight you need to help formulate your strategy for the future and uncover new credit card business models to earn customer loyalty.
The Power of Points and Partners considers:
· How can credit card businesses regain profitability?
· Should issuers abandon credit cards and focus instead on other financial products like debit or prepaid cards, which seem more “right for the times”?
· Should non-financial industry players invest instead in ways of engaging customers unrelated to credit cards, such as coalition rewards?
· Is it better for credit card businesses to focus on interest rates and annual fees, and move away from “too expensive rewards”?
The Power of Points and Partners encourages you to put aside the question of “How can I get my customers to spend and revolve more?” and instead focus on how you can recognise and reward your loyal customers. Earn customer loyalty and you will be top of their wallet, gaining spend 300-450 percent of the average.
We look at the experiences of over 60 companies across over 80 case studies to highlight the importance of why understanding your customers goes beyond thinking about them as revolvers or transactors, subprime or super affluent and instead uses a personalised, customer-centric engagement approach.
We explore how rewards motivate customers and why new partnership models are critical to deliver compelling and sustainable rewards.
In the coming years a credit card business will hit the top twenty list for highest customer loyalty rating. It could be your business. If so, it will be through harnessing The Power of Points and Partners.
About the author
Building new consumer loyalty businesses with corporate partners is the core of Jacqui’s expertise, developed in over 17 years with American Express and Shell International.
As vice president of international partnerships at American Express (2007 to 2011), Jacqui created new consumer co-branded card partnerships with blue chip companies such as BMW in Germany and David Jones in Australia. She also developed new multi-market partnerships with companies such as Amazon and Apple, in the American Express consumer loyalty programme Membership Rewards. By focusing on strong partners outside of American Express’ traditional strength in travel and entertainment, Jacqui persistently championed leveraging core skills and capabilities in new areas.
Prior to joining American Express Jacqui spent 13 years with Shell International. As the global CEO of Shell Credit Cards she initiated and developed Shell’s global co-branded credit card business, taking it from an idea to a flourishing business operating in Europe (East, West and Nordics) and Asia. Jacqui also led the creation of the first customer relationship management approach for corporate fuel card customers across more than 25 markets, during her time as Shell Fuel Card global marketing and strategy manager.
Release date: August 2011
About Lafferty Group
Lafferty Group is a major provider of advanced knowledge services for the financial industry worldwide, with particular specialisations in the fields of retail banking, cards & payments and central banking.
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