Timetric Cards & Payments Reports
Our cards and payments analysts work with unique proprietary data to help create reports that define markets, identify trends and deliver actionable insights. From contactless to loyalty programmes, our reports are developed in conjunction with our advisory panels to make sure they suit your needs.
Strategic Excellence in Payment Card and Bank-wide Loyalty Schemes
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- Payment card
- Loyalty programs
- Loyalty program analysis
- Chase Card Services
- Citibank
- BMO Bank Montreal
- Fifth Third Bank
- CO-OP financial Services
- Nordea Finland
Synopsis
- Loyalty programs have become increasingly popular and are prominent features of many cards in both developed and emerging markets.
- The changing role of the debit card has resulted in the successful components of credit card marketing programs featuring more in the debit space; one outcome is the rise of the rewards scheme.
- Loyalty and reward programs are critical marketing tools allow issuers to achieve key strategic goals.
Details
- Product code: VR0708MR
- Published: Feb. 1, 2010
- 154 pages
- Single-user: $3800
- Site License: $7600
- Enterprise License: $11400
- Terms & Conditions
Executive summary
Loyalty programs have allowed card issuers to add value to their offering. The favorable economics of customer retention are often cited. The first formal study, conducted by Frederick Reichheld and W. Earl Sasser in 1990 found that in service industries, profits increased in direct proportion to the length of a customer’s relationship. The authors noted that at MBNA, a 5% improvement in customer retention increased the average customer value by 125%, and concluded that halving defections could more than double the growth rate of the average company.
In the card business there is no doubt that over the longer term customers are more profitable. In fact, given the high cost of acquisition in many markets, cards only become profitable if a customer remains for a certain length of time. Even though a customer relationship is clearly one of the most valuable assets a card company can have, the relationship is often undervalued. The emphasis has been on recruiting new cardholders – and overlooking the value of existing cardholder relationships. However there is a growing recognition of the importance of customer retention as profits have come under pressure from competition, regulators, and the less certain operating environment.
Scope
- The changing role of the debit card has resulted in the successful components of credit card marketing programs featuring more in the debit space. One outcome is the rise of the rewards scheme.
- Loyalty programs have become increasingly popular and are prominent features of many cards in both developed and emerging markets.
- Section one of this VRL report reviews recent innovations, global market intelligence and best practice in the running of a loyalty and rewards program. Section two presents the key fundamentals and metrics needed to create a successful program.
Key highlights
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Reasons to buy
- Gain access to recent innovations and best practices in payment card and bank-wide loyalty schemes
- Formulate business strategies by leveraging our critical and actionable insights
Table of contents
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List of tables
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List of figures
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