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The Power of Points and Partners - How to Earn Credit Card Customer Loyalty
Lafferty Group, July 2011
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.
True customer loyalty is rare. 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 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 reward 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 report considers questions such as:
- Is it better to focus on interest rates and card fees, and move away from “too expensive” rewards?
- Should businesses keep it simple rather than investing in constantly changing data systems and multiple versions of marketing campaigns?
- Are co-brands dinosaurs and are partnerships more trouble than benefit?
- Should non-financial industry players invest instead in ways of engaging customers unrelated to credit cards, such as coalition 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 that is 300-450 percent of the average and improving retention and marketing efficiency by triple digits.
Looking at the experiences of over 60 companies across more than 80 case studies we highlight 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 how non-financial players are both the biggest threat and opportunity. Taking a strong commercial perspective, we probe which new partnership models are critical to deliver compelling and financially 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.
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