Credit Card Customer Satisfaction: Effective Acquisition and Retention Strategy Must Focus on Multiple Facets of the Relationship

Table of Contents

• 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
  • American Express and Discover Cardholders Expect Specific Reward Types
  • Non-online Shoppers Skew Somewhat toward Cash Back Rewards
  • Non-online Shoppers Show Slightly Higher Satisfaction with Credit Card Rewards
  • Variation in Importance of Rewards on an Issuer-by-Issuer Basis
  • Online Features Satisfaction Steady among all Generations
  • Focus on Gap Between Satisfaction & Importance for Rewards Strategy
• Related Research
• Companies Mentioned

Table of Figures

• Figure 1: Importance of Security in Choosing an Issuer by Generation
• Figure 2: Security Satisfaction versus Importance by Generation
• Figure 3: Security Importance at the Point of Transaction by Generation
• Figure 4: Security Importance and Satisfaction Levels by Issuer
• Figure 5: Online Features Importance and Satisfaction by Issuer
• Figure 6: Online Features Issuer Importance by Generation
• Figure 7: Online Feature Purchase Importance by Generation
• Figure 8: Customer Service Importance and Satisfaction by Issuer
• Figure 9: Customer Service Issuer Importance versus Satisfaction by Generation
• Figure 10: Grace Period Issuer Importance by Generation
• Figure 11: Grace Period Satisfaction versus Importance by Generation
• Figure 12: Grace Period Importance and Satisfaction by Issuer
• Figure 13: Rewards Issuer Importance by Generation
• Figure 14: Rewards Importance at the Point of Transaction by Income
• Figure 15: Rewards Satisfaction versus Importance by Income
• Figure 16: Rewards Satisfaction by Generation
• Figure 17: Important Features by Generation
• Figure 18: Interest Rate Importance by Generation
• Figure 19: Rewards Purchase Importance by Generation
• Figure 20: Rewards Purchase Importance by Issuer
• Figure 21: Rewards-earning Cardholders by Issuer
• Figure 22: Rewards Types by Generation
• Figure 23: Rewards Types by Issuer
• Figure 24: Rewards Types by Online/Non-online Shoppers
• Figure 25: Rewards Satisfaction by Online/Non-online Shoppers
• Figure 26: Rewards Importance by Issuer
• Figure 27: Online Features Satisfaction Levels by Generation
• Figure 28: Rewards Satisfaction by Income