Findings Removing the Co from Co-brand when launching a credit card program
In an age where customer loyalty, service expectation and digital experience are becoming increasingly personalized and integrated into the brands they love, a new survey has revealed that over 50% of US consumers now own a credit card affiliated with a brand.
Even more surprising: Up to 62% of customers consider themselves loyal to the brand or store, instead of the bank partnering with them on their co-branded cards. This is particularly true among younger consumers, who reported feeling least satisfied with their current cards and most open to applying for a new one.. These findings showcase how valuable it can be for businesses to embed credit solutions directly into their offerings, as this will allow them greater reach through providing tailored experiences that meet customers exactly where they are.
It's important for enterprise businesses to understand the reasons behind this shift in customer behavior, and how it can benefit them. In this blog post, we'll delve into the key findings of this survey and explain why credit is the new front door for financial services.
1. Cardholders are looking for convenience and flexibility.
According to the survey, the convenience of having multiple financial services in one place is the primary reason why customers are turning to credit providers. It’s important for businesses to recognize that customers want to simplify their financial lives and consolidate their services. This presents an opportunity for businesses to provide a comprehensive suite of financial services, making it easier for customers to do business with them. It's crucial to ensure that products and services are easily accessible and flexible, meeting customers' varying needs.
2. Credit card usage is increasing.
The survey shows that credit cards were the first financial product for 69% of consumers surveyed, and they later added additional financial products over time. This indicates that credit cards are becoming the gateway to other financial services and products. Leveraging this trend is key for enterprise businesses to increase customer acquisition and retention. Creating customized offers and promotions for credit card holders can encourage them to explore and add on other financial services.
3. Cardholders are loyal customers.
The survey revealed that credit cardholders are loyal customers, with a majority expressing satisfaction with their provider. This is a significant benefit for an enterprise business, as retaining customers is as important as acquiring them. It's crucial to prioritize customer satisfaction and provide high-quality service and support. This can help drive customer loyalty and increase the opportunities for cross-selling of additional financial products.
4. Customers want access to financial education and resources.
The survey revealed that customers are interested in financial education and resources to help them manage their financial lives better. Providing resources such as budgeting tools and financial advice can increase customer engagement and loyalty. For enterprise businesses, investing in educational resources can help differentiate you from your competition, build trust with customers, and position you as their trusted financial advisor.
5. The younger generation is leading the change.
The survey found that younger generations, particularly millennials and Gen Z, are leading the change in using credit cards as a gateway to other financial services. To stay relevant in this fast-changing landscape, enterprise businesses must make their services attractive to younger generations. Providing personalized experiences and services through digital channels can improve customer experience and appeal to these demographics.
Customers are looking for convenience, flexibility, and a comprehensive suite of financial services from their credit providers. Meeting these expectations allows enterprise businesses an opportunity to increase customer acquisition, retention, and ultimately, revenue. It's crucial to understand the reasons behind this trend, invest in a comprehensive suite of financial products and services, prioritize customer satisfaction, and provide educational resources for customer engagement and loyalty. By embracing credit as the new front door, you can stay ahead of the competition and meet the changing needs of customers in this quickly-changing digital landscape.
To learn more, download the State of Credit report here. Or learn how you can get started with Marqeta’s credit card guide.
