The outlook for the UK card market is going to be highly challenging in 2009 and 2010, calling for a new approach to product design. This report provides six strategies that issuers should follow to take full advantage of the opportunities available and highlights the most innovative product propositions that UK issuers can look to in order to maximise their growth in this challenging environment.
Scope
- Part of the UK Plastic Cards series, this brief provides insight into the strategies that UK issuers should follow in the recession
- The first theme focuses on strategies for effective customer acquisition and retention in this challenging environment
- The second major theme is using innovative value propositions to create incentives for the right kind of customer behaviour
- Analysis of the most innovative product value propositions internationally provides real-world examples of how these strategies can be employed
Highlights of this title
As the economic climate worsens during 2009 and into 2010, many cardholders will find it difficult to maintain repayments on their card balances. Offering instalment repayment options on large ticket transactions is widely available in Europe and Asia, and can provide a solution to this issue.
Encouraging good account management by cardholders is becoming increasingly important. There are a growing number of initiatives that are aimed at addressing this issue, suggesting there is considerable scope to closely align card value propositions with the right kind of behaviour from customers.
Multiple cardholding remains a very important feature of the UK market, and creates a situation where card issuing banks can look to win back customers. The primary advantage of this strategy is that issuers already have a relationship with these customers and are able to better assess the risk of lending to such customers than new business.
Key reasons to purchase this title
- Understand the six key product strategies for issuers to employ in this recessionary environment
- Learn how best to achieve these aims from examining innovative product ideas from other markets
- Use these ideas to address the pain points in your business
