New Study Reveals the Keys to Credit Cardholder Loyalty
The world of finance has long been a basis of societal stability. Iconic images of permanence like skyscrapers, impenetrable bank vaults and quant-jock bankers in 3-piece suits may come to mind when you think about finance. But demographics and technology continue to churn the once-still waters of finance. Credit card providers are at the center of this turmoil.
Millennials are rewriting the rules of commerce and loyalty. Technologies like ApplePay, blockchain, and messaging payments are shifting the terrain. In the US, Venmo now processes $8 billion in payments per quarter. In Africa, with over 30 million users, M-Pesa is now a dominant form of payment. Visa is countering with its own mobile payment platform. Change is brewing.
Cardholder Loyalty is Key to Credit Card Providers Fending off Disruption.
Credit card providers with the best pulse on how to attract and retain customers hold the keys. They are best positioned to adapt in a new era of purchasing. One tool many card providers use to increase cardholder loyalty is NPS.
To reveal the key drivers of customer loyalty and acquisition in the credit card industry, Qualtrics conducted a study of 500 credit card customers. We asked them important questions about why they choose a card, why they switch and why they stay. The findings provide insight on what credit card customers expect from their credit experiences, and what they’ll do if they don’t get it.
Key Cardholder Loyalty Findings
- 64% of switching customers have not told anyone at their credit card that they are considering leaving
- Switching cards means switching rewards as 71% of customers who plan a switch say their new card will have different rewards than their current one
- Many departing credit card customers can be saved as nearly 70% of customers who are leaving would stay with lower fees
- 45% of credit card customers who want to leave say their provider could do something to change their mind.
Offering cardholders chances to provide feedback is crucial to anticipating and preventing cardholder churn, and will be top priority for any credit card provider wanting to drive a stake into the ground. With over 1 billion cards in circulation in the US alone, those stakes are high.