Syndicated Report Brochure
Consumer Credit Card Preferences:
Using Rewards Programs Linked to Interest Rates to Drive Usage and Profitability
May 2006
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Syndicated Report Brochure Consumer Credit Card Preferences: Using Rewards Programs Linked to Interest Rates to Drive Usage and Profitability
Overview
New Javelin consumer data provides large credit card issuers with in-depth information on the card features that drive consumer selection and usage. Issuers must often segment their portfolio—marketing cards to small subsections of the consumer population. Javelin proposes a link between interest rates and rewards to meet consumer needs and drive usage among a broader subsection of the most profitable cardholders.
Primary Questions
• • • • What features resonate most with consumers in selecting a credit card? What drives consumers to select one card over another at the time of purchase? How will innovative rewards programs linked to interest rates drive revenue? What unique rate-oriented programs are issuers presently deploying?
Major Findings
Low interest rates drive consumers’ selection of credit cards and usage decisions at the point of sale more than any other feature. Nearly 70% of consumers cite low rates as a top reason for choosing a card, and roughly 50% state it as their primary reason for using the card. As rewards points are also a major driver of choice and usage, several issuers have begun successful programs that link interest rates and rewards points.
Audience: Author: Contributors:
Card issuers, payment networks Bruce Cundiff, Research Analyst James Van Dyke, Founder and Principal Analyst Don Phan, Research Analyst Stephen Matava-Knighten, Research Associate
Editor: Publication Date:
Price:
Mary T. Monahan May 2006 $950
Telephone: 925.225.9100
Fax: 925.225.9101
Address: 4309 Hacienda Dr., Suite 380 Pleasanton, CA 94588
Email: inquiry@javelinstrategy.com
Web site: www.javelinstrategy.com
Syndicated Report Brochure Consumer Credit Card Preferences: Using Rewards Programs Linked to Interest Rates to Drive Usage and Profitability
Table of Contents Overview…………………………………………………………………………………………... Major Findings Related to Credit Card Rewards and Marketing…………………….............. Low Interest Rates Surpass all other Features when Consumers Choose a Card Issuer… For Card Usage, Low Rates, Available Balances, Rewards Bring Card to “Top of Wallet”.. Develop Rewards Programs that Link Interest Rates and Card Usage……………………... 1 1 2 3 4
Table of Figures Figure 1: Figure 2: Top Credit Card Selection Features…...………….………................................. Consumer Decision for “Top of Wallet” Cards………………………..………….. 2 3
Telephone: 925.225.9100
Fax: 925.225.9101
Address: 4309 Hacienda Dr., Suite 380 Pleasanton, CA 94588
Email: inquiry@javelinstrategy.com
Web site: www.javelinstrategy.com
Syndicated Report Brochure Consumer Credit Card Preferences: Using Rewards Programs Linked to Interest Rates to Drive Usage and Profitability
Companies Mentioned in this Report American Express Bank of America Capital One Discover E*Trade Financial JPMorgan Chase MBNA Providian Washington Mutual Bank
Telephone: 925.225.9100
Fax: 925.225.9101
Address: 4309 Hacienda Dr., Suite 380 Pleasanton, CA 94588
Email: inquiry@javelinstrategy.com
Web site: www.javelinstrategy.com
Syndicated Report Brochure Consumer Credit Card Preferences: Using Rewards Programs Linked to Interest Rates to Drive Usage and Profitability
Sample Pages
Telephone: 925.225.9100
Fax: 925.225.9101
Address: 4309 Hacienda Dr., Suite 380 Pleasanton, CA 94588
Email: inquiry@javelinstrategy.com
Web site: www.javelinstrategy.com
Syndicated Report Brochure Consumer Credit Card Preferences: Using Rewards Programs Linked to Interest Rates to Drive Usage and Profitability
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Telephone: 925.225.9100
Fax: 925.225.9101
Address: 4309 Hacienda Dr., Suite 380 Pleasanton, CA 94588
Email: inquiry@javelinstrategy.com
Web site: www.javelinstrategy.com