WINNING THE CARD WARS: Data is the Key for Issuers in Unlocking New Business

Do you have the right data at your fingertips to make effective decisions to grow your card portfolio?

Now, more than ever, you'll need better data.

"A perfect storm of increasing interest rates, deeper credit card penetration, and persistently strong consumer spending has ratcheted up competition and created a customer-incentive war among banks and credit card companies," revealed the recent J.D. Power Credit Card Satisfaction StudySM

Consumers Demanding More Relevance

Do More With First Data!

Of course, I don't have to tell you that simply bombarding consumers with random offers to see what sticks is not a winning strategy. Yet that is exactly what too many issuers are doing today.

Seventy-two percent of consumers said the majority of the credit card solicitations they received just weren't a good fit for them, according to "How Do Consumers Feel About Credit Cards?," a recent nationwide survey conducted by Edelman Intelligence on behalf of Experian.

In fact, only sending offers for which an applicant is pre-qualified was the top way credit-card solicitations could be improved, survey respondents said. It gets better. The survey also found:

  • 34% want more accurate information about the credit card's terms
  • 31% want more information about the offer
  • 22% want consideration for their past purchases and credit behaviors
  • 22% want consideration for their rewards’ preferences

These are powerful insights. Let's explore some ways issuers can leverage data to deliver more appealing offers, better customer service and targeted marketing campaigns.

Leverage Big Data to Drive Strategy

Big Data can be used beyond fraud detection. As surveys responses demonstrated, consumers crave relevance. From purchasing histories to paying with points to redeeming rewards, you have a wealth of transaction data to inform your client-acquisition strategies and increase card usage. All you need are the tools and techniques to tap those data streams.

Convert Customer Communications into a Competitive Advantage

What are you putting in front of your card holders? Are your offers clear, timely and relevant? Are they delivered in manner that will delight? Could you reduce expenses and increase offer responses through outsourcing? How you present an offer is just as important as what you are offering.

Transform the Customer Experience

We know it's more expensive to acquire a new customer than keep one. From call center logs to chargeback and dispute resolutions, if you're not delighting enough disgruntled customers, maybe it's time to focus on the data to see where you can improve, or at least shorten, interactions. And for the customers who like to solve their own problem, look to leverage eCustomer Service, Interactive Voice Response (IVR) and other self-service innovations.

Use the Right Channels: You don't always have to ask your customers what they want. Predictive models that crunch data such as how they purchase, where they go for customer service and how the pay can help you determine how you should reach out to customer segments, whether that’s direct mail, email, mobile or telephone to increase the likelihood they will respond to an offer.

To help make your card more top-of-wallet, it needs to be top-of-mind, and to do that you need to tap your data to make more informed decisions and deliver more relevant offers.

Interested in a conversation with the author? Click Here to Send Your Questions and Comments to Varun Ahuja.