Reward Credit Card Market Current Development & Forecast to 2018 in New Research Report Available at RnRMarketResearch.com
Dallas, Texas (PRWEB) June 13, 2014 -- The report provides insights into reward credit cards offered to customers in key markets:
• It provides a global snapshot of current market dynamics for reward credit cards and their future outlook.
• It provides insights into the key factors driving increased focus on rewards and loyalty programs.
• It provides insights into best practices and key strategies adopted by card issuers in key card markets.
• It provides information on value-added features offered by different types of credit card to attract customers.
• It provides case examples which highlight the successful implementation of best practices and strategies in key markets.
Banks are increasingly using rewards and loyalty programs as a tool for maintaining relationships with top-end customers, as these relationships provide high potential for revenue generation. Financial institutions are putting forward premium experiences and offers to increase loyalty and develop deeper banking relationships. Rightly positioned, unique rewards act as a key differentiator in a highly commoditized financial services market.
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To remain profitable, banks have been making changes to their strategies and operational models which include finding the optimum mix of funding options and reward offerings to achieve greater levels of customer loyalty and profitability. Both issuers and card schemes are partnering with airlines, hotels and popular brands to offer merchant-funded rewards. The strategy allows card issuers to improve the value of their reward credit cards without putting upward pressure on costs.
Consumers are traveling more than ever, and forecasts for outbound trips indicate that this trend will continue over the next five years in key economies. Consequently, card issuers and schemes offer credit cards that focus on travel benefits to increase customer retention and attract new customers. Travel credit card customers are often offered lounge access at airports, free or heavily discounted air tickets, preferential treatment at hotels and resorts, free valet parking, discounted limousine services, and insurance cover that ranges from travel accident to lost and delayed baggage, to trip cancellation.
There is increased investment in customer engagement strategies. Schemes and issuers are offering personal concierge services on their top-end credit cards, or access to exclusive events to differentiate their products. Issuers are also expanding their presence on social media and mobile platforms through various apps to drive brand loyalty. The increasing popularity of social media and Smartphone’s also allows card issuers opportunities to enhance their marketing efforts while keeping costs low.
Complete report available @ http://www.rnrmarketresearch.com/insight-report-best-practice-in-the-reward-credit-card-sector-market-report.html.
Key highlights
• Consumers are moving away from conspicuous consumption to more considered consumption, and access to special or unique experiences through their card has gained importance. In this altered environment, banks and other card issuers are adopting various strategies to decrease operating costs and increase revenue potential.
• Banks and other card issuers are increasingly focusing on credit cards designed to target mass affluent consumers driven by the relatively high profitability offered by this segment. At times, banks may run the cards at a loss, but benefit from the rest of their relationships with clients through deposits, investments, savings, mortgages, and asset and wealth management, among others.
• Card issuers have increased their focus on issuing credit cards with travel benefits. Many issuers across the world, including Bank of America, Chase, Citibank, HSBC, Commonwealth Bank, Lloyds, Capital One, Hyundai Cards, Samsung Cards and Amex, among others, issue premium cards which specifically focus on travel-related services.
• Banks and other card issuers are expanding their operations on social networks through partnerships with merchants such as retailers, restaurants, leisure centers and travel operators. The partnerships provide opportunities to engage customers through additional content, offers and discounts. These expansionary moves are driven by a desire to improve consumer offerings and increase revenues.
• Bank-funded reward and loyalty programs have increased cost burdens for issuers. Banks and card issuers have introduced similar loyalty programs which have become almost indistinguishable. This has compelled banks to carry out other expensive promotional initiatives to set themselves apart. Consequently, issuers are moving towards merchant-funded loyalty programs to lower their operating costs.
Reasons to buy
• Gain insights into market potential for reward credit cards in six key markets.
• Gain insights into the product strategies of card issuers in key markets.
• Gain insights into current and future sector dynamics for reward credit cards.
• Understand emerging trends and drivers to streamline product offerings.
Explore more reports on Credit Card industry at http://www.rnrmarketresearch.com/reports/business-financial-services/financial-services/credit-card.
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Ritesh Tiwari, RnRMarketResearch.com, http://www.rnrmarketresearch.com/, +1 (888) 391-5441, [email protected]
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