LONDON, Oct. 10, 2017 /PRNewswire/ -- UK cardholders have 1.77 credit cards in their wallet on average, and while some may assume consumers aren't in the market for a new card, the majority are actually open to new card offers. But consumers aren't settling for just any card, and to earn their business, issuers need to be smart about their products' value propositions and how they're marketed. In the densely populated field of credit card options, how can issuers stand apart from the pack? Offering the best rewards is a good start, according to new data from Auriemma Consulting Group (Auriemma). But consumers want more. Here are some of the more compelling ways issuers can increase their chances of getting into consumers' wallets
1. Offer attractive rewards.
No matter the category, rewards continue to push consumers over the tipping point when making acquisition decisions. When faced with the long list of elite options, the 66% of respondents interested in acquiring another rewards card most frequently cited the richness of rewards as the chief factor for their selection. But just offering rewards isn't enough.
2. Highlight your card's exclusivity and prestige.
When some consumers select a card, they do so because the card embodies a particular lifestyle. Aspirational or otherwise, cards perceived as prestigious (28%) and those with the best benefits (21%) (e.g., exclusive events, lounge access) are highly coveted by those looking for a new card. This group seeks cards that tout platinum or titanium status, viewing them as having the most enticing benefits.
3. Maintain a well-known and respected public image.
Card selection is also heavily impacted by the familiarity with and reputation of your brand. Among those surveyed, approximately three-quarters (73%) indicated they would be unlikely to take a card from a brand they are unfamiliar with. Consumers over 55 years old were even more likely to say this (83% vs. 67% under 55). Likewise, 74% reported a brand's reputation (positive or negative) would impact their decision, a factor even more important for cardholders under 55 (79% vs. 65% of 55+). And 21% of current cardholders in the market for a new card say they would base their decision on their personal affinity for the brand associated with it.
4. If you're UK-based, tell people!
Consumers see real value in products from issuers who have a distinct presence in the UK: 73% of cardholders said it was important for their card issuer to be headquartered in the UK. In fact, if rewards and rates were equal, 77% of cardholders with a preference would prefer their issuer have a national presence (vs. 23% global). UK-based issuers that are not calling attention to their geographical connection to cardholders are missing an opportunity to increase their wallet share and acquire new customers.
"Issuers who can effectively communicate these four attributes stand the best chance of acquiring new customers," says Jaclyn Holmes, Director of Payment Insights at Auriemma. "The challenge will be in striking the proper balance and ensuring your message is targeting the correct consumers."
This study was conducted online within the UK by an independent field service provider on behalf of Auriemma in June 2017, among 500 adult credit cardholders. The number of interviews completed on a monthly basis is sufficient to allow for statistical significance testing between sub-groups at the 95% confidence level ± 5%, unless otherwise noted. The purpose of the research was not disclosed nor did the respondents know the criteria for qualification.
About Auriemma Consulting Group
Auriemma is a boutique management consulting firm with specialised focus on the Payments and Lending space. We deliver actionable solutions and insights that add value to our clients' business activities across a broad set of industry topics and disciplines. Founded in 1984, Auriemma has grown from a one-man shop to a nearly 50-person firm with offices in London and New York. For more information, visit Auriemma's website at www.acg.net or contact Jaclyn Holmes at 020 7629 0075.
SOURCE Auriemma Consulting Group