Find Out How The Card Issuing Industry is Becoming Increasingly Competitive and Commoditized with Credit Card Customer Satisfaction Report

Business Wire, July 7, 2008

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/research/d3503f/credit_card_custom) has announced the addition of Javelin Strategy & Research's new report "Credit Card Customer Satisfaction: Effective Acquisition and Retention Strategy Must Focus on Multiple Facets of the Relationship" to their offering.

The card issuing industry is becoming increasingly competitive and commoditized, with current economic conditions driving issuers to implement more stringent controls surrounding lines of credit, and product differentiation opportunities becoming negligible. Cardholder acquisition and the overall growth in the portfolio, however, remain the lifeblood of the business. This report, utilizing Javelin quantitative consumer data and analysis, provides insight into consumer preferences for selecting card issuers and also choosing a card for payment transactions.

Specific attention is paid to six prominent issuers--American Express, Bank of America, Capital One, Chase, Citi and Discover. They provide case studies for the issuer community as a whole and reflect sufficient breadth to represent cardholder satisfaction levels for various features. Readers of this report responsible for card product development, marketing, and rewards program management can utilize the information and analysis to enhance cardholder acquisition, increase loyalty among existing cardholders, and drive usage for their card products.

Primary Questions

* What card features resonate with cardholders in selecting an issuer?

* How can issuers alter acquisition strategy to more effectively cater to cardholder desires?

* What drives consumers to use a particular card for purchases?

* How can issuers retain existing cardholders based on various card features?

* How can issuers target cardholders for more effective and profitable relationships?

Methodology

This report is based on data collected online from a random-sample panel of 2,957 respondents, in September 2007. The survey targeted respondents based on representative proportions of gender, age and income as compared to the overall US online population. Overall margin of sampling error is +-1.80 percentage points at the 95% confidence level. Generation Y, Generation X and Baby Boomers are used to define consumers into age cohorts. These groups are defined by birth date: Baby Boomers are 1945-1965; Gen X is 1961-1981; and Gen Y is 1979-1999.

Key Topics Covered:

Overview

Primary Questions

Findings and Analysis

Methodology

Executive Summary

Top Issuers Demonstrate Strong Cardholder Satisfaction Rates

Relative Satisfaction for Certain Features Varies by Demographic and by Issuer

Protection Against Identity Fraud: Perception versus Reality

Importance of Security by Generation Emerges as Key Differentiator

Address Gaps between Importance of Security and Satisfaction Levels Directly

As Fear of Data Breaches Rise, Security at Purchase Increases in Importance

Boomers More Concerned with Protection at the Point of Sale

Gaps in Security Satisfaction on an Issuer-by-Issuer Basis

Online Features Drive Retention and Efficiency in the Cardholder Relationship

Consumer Satisfaction with Online Features Levels Exceed Expectations

Online Features Not Critical Differentiator in an Acquisition Strategy

Online Features Factor into Card Choice at the Point of Transaction for Gen Y

Customer Service: Consumers Depend on Issuers to Fix their Problems

American Express Cardholder Satisfaction Exceeds Importance

Customer Service by Generation: Valued More by Baby Boomers

Customer Service Satisfaction Trails among Younger Generations

Grace Period as a Differentiator: Potential for Top-of-Wallet Card Creation

Some Consumers Rate Grace Period Important when Selecting Issuer

Leverage Grace Period Satisfaction and Importance Equivalence to Structure Offerings

Cardholder Satisfaction with Grace Period by Major Issuer Exceeds Importance

Rewards: Focus on "Dissatisfaction" Leads to Acquisition Opportunities

Surprisingly, Importance of Rewards in Issuer Selection Less Important Overall

Affluent Consumers Show Extreme Preference for Rewards as Top-of-Wallet Feature

Satisfaction with Rewards Corresponds with Importance by Income Group

Rewards Dissatisfaction among One of Four Leaves Door Open for Competitors

Demographic Breakdown of Satisfaction Levels for Various Features

How Do Rewards Compare with Other Desired Features in Choosing an Issuer?

Baby Boomers Value Security and Service

Gen X - Security, Interest Rates and Service

Gen Y - Interest Rates, Security, Service, and Rewards

Interest Rates Resonate for all Decisions--Issuer and Purchase Alike

Some Cardholders Dissatisfied by Interest Rates

Appendices: Additional Consumer Data and Data Cuts

Preferred Features for Card Usage Differ Slightly: Different Acquisition and Usage Generation Strategies

Must Be Employed

Different Card Portfolios Reflect Rewards Importance

Issuers' Rewards Cards Range from 40% to 90% of Base - According to Cardholders

Most Consumers Earn Rewards Points: Relatively Insignificant Generational Differences