Private-Label Issuers: Give Customers THESE Reasons to Use Your Card
Private-label card issuers that want to preserve the profitability of their portfolios need to give their consumers more reasons to pull out their store-branded plastic to make purchases.
Here are some of those reasons that just may resonate with your customers:
- Instant discounts and special promotions – Want to encourage more frequent usage? Instead of restricting the customary 15 percent discount to the first day, provide customers an automatic discount every time they use their card. Also, offer discounts on specific items (e.g., exclusive or private-label branded products) to attract customers into the store and increase add-on sales.
- Customized payment terms – Extend the terms on promotions so the minimum payments become attractive from the customer’s perspective. Or, offer equal payments, allowing the consumer to pay a set amount each month. This will align with how many consumers manage their monthly expenses.
- Rebate programs – Entice customers with rebates or points when they use their cards for cash-back rewards, bonus shopping discounts or access to exclusive sales events.
- Advanced account management tools – Make your card more attractive with features like fraud alerts, payment reminders, electronic statements and mobile payments. Providing consumers with advanced account management tools helps retain their business and stimulate card usage after the initial credit purchase.
- Retail branded debit accounts, connecting the account to the consumer’s checking or savings account – Retailer debit accounts typically offer similar perks as retail credit cards, such as cash-back rewards and other incentives.
These are just some of the creative programs you can implement to help spur card usage and nurture customer loyalty.
Want more recommendations on how you can grow your card portfolio? Request a free briefing with one of our Credit Payments Solutions Specialists.