July 20 , 2010

Indecision among consumers is huge marketing opportunity for credit card companies

Dallas--According to a recent study by Epsilon, more than half of consumers surveyed were unsure of what credit card company they were going to use when opening up a new account. This represents a huge opportunity for credit card marketers to engage these undecided consumers.

The survey of over 180 consumers who recently opened up a new credit card uncovered the experience throughout the selection process. A cross-section of a larger Epsilon survey of 1500 US consumers, the study was part of a comprehensive listening exercise designed to explore the concept of Customer Experience Marketing, an approach to deliver relevant interactions that anticipate and respond to the many ways consumers want to engage, shop and buy today. The study gathered data across multiple product categories including televisions, computers, hotels, auto insurance, mobile devices, communication services and credit cards.

 

In the key findings from Epsilon’s credit card survey:

 

  • Only 34% of consumers surveyed definitely which company they were going to use when they opened up a new credit card; 
  • Over four in ten consumers chose a company with which they already had accounts;
  • The most influential sources of information were friends and family, followed by a financial advisor, brand websites, and product review websites;
  • The primary reason why consumers selected the credit card company was the rewards program. Interest rates and recommendations from friends and family were also driving forces;
  • The preferred channel for receiving information about credit cards was email. Postal mail and the company website were also preferred by consumers;
  • Consumers are most interested in receiving rate changes and sales/discount offers from credit card companies. Nearly one third also chose information tailored to their interests as one of their top two selections.

“Consumers want and expect to receive information that is relevant and personal especially when it comes to financial services marketing. In order to engage consumers and create unique experiences, marketers need to focus on asking questions and understanding what consumers want and how to engage with them,” said Michael Penney, executive vice president, Epsilon Strategic & Analytic Consulting Group. “A multichannel approach that speaks directly with the individual consumer can create long-lasting relationships.”

 

Loyalty programs are another critical component of a successful retail banking marketing strategy. There are many choices in benefits and rewards. With a clear definition of the loyalty program and an understanding of customer segments, marketers can more effectively develop their strategy and create one-to-one conversations with customers.

 

Epsilon provides comprehensive data-driven, multichannel marketing services that leverage deep consumer insight.  Epsilon works with many of the most-recognized brands in the world including a number of financial services marketers. Epsilon’s Customer Experience Marketing study was comprised of a March 2010 online survey (conducted in conjunction with eRewards) of nearly 1500 consumers in addition to face-to-face interviews.

 

Additional in-depth information and analysis from the credit card study are available in a special report from Epsilon – Recharging Credit Card Marketing to Meet Evolving Consumer Expectations.

 

Epsilon is the industry’s leading marketing services firm, with a broad array of data-driven, multichannel marketing solutions that leverage consumer insight to help brands deepen their relationships with customers. Services include strategic consulting, acquisition and customer database technologies, loyalty management, proprietary data, predictive modeling and a full range of direct and digital agency services, including creative, interactive web design, email deployment, search engine optimization and direct mail production. In addition, Epsilon is the world's largest permission-based email marketer.

 

 

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