It’s one thing to choose a new pair of shoes — with plenty of basis for choice based on color, style and heel-height. But how do you choose your credit card? It can be tough to tease out the difference between one piece of rectangular-shaped plastic and another.
But according to a new Epsilon study (Epsilon is owned by COLLOQUY parent company LoyaltyOne), the rewards program is one key driver in decision making when it comes to choosing a new credit card. With other reasons for choosing a card outside of a company’s control — four in ten consumers, for example, choose credit cards from companies with which they already have accounts — the notion that a loyalty program can be so influential offers tremendous opportunity for financial services marketers.
However, if marketers want to take advantage of the opportunities of the rewards program in terms of influencing consumer choice, proper communication and targeting is essential. The program has to be clearly defined and the rewards crystal-clear. Properly targeted messaging is essential, too — according to Epsilon, e-mail is a preferred channel — and clear understanding of customer segments will go a long way towards loyalty success.
