Eight best practices to acquire new credit card customers | Visa

Eight best practices to acquire new credit card customers

The credit card marketplace is a crowded and competitive landscape. The average U.S. consumer has 3.9 credit cards, and the top 10 issuers own 90 percent of credit cards in the market.¹ And in 2016, issuers delivered more than 5 billion acquisition marketing communications via direct mail or email.

Left side: Pie graph that shows 10 issuers and an arrow pointing to 90 percent. Right side: A hand holding 4 credit cards and text saying 3.9 cards. Map of the U.S.A. is in the background.
Left side: Pie graph that shows 10 issuers and an arrow pointing to 90 percent. Right side: A hand holding 4 credit cards and text saying 3.9 cards. Map of the U.S.A. is in the background.

Acquisition campaigns are critical for issuers to sustain and grow healthy portfolios. Regional and community issuers have an opportunity to build on their existing customer relationships and offer the right products to meet customer needs by capitalizing on best practices and understanding their customers better. Here are eight best practices for marketing success:
 

Eight best practices to acquire new credit card customers
Best Practices  Rationale
Always include a balance transfer offer¹ 74 percent of mail offers sent in 2016 included a balance transfer and/or purchase APR introductory offer²
Make sure that your balance transfer offer is competitive for the rate and duration, and include a purchase annual percentage rate (APR) to assure competitiveness.
  • Non-competitive offers severely depress consumer response and perform worse than solicitation with no offer
  • Purchase APR offers are usually included with balance transfers
Include a “spend and get” offer with the balance transfer¹
  • Response is higher for issuers that include both a balance transfer and “spend and get” offer
  • Offer stimulates spending and builds top of wallet behavior
  • Most offers are based on points but cashback awards are also prevalent
Structure “spend and get” offer to focus on the first 60-90 days after account activation¹ Provides sufficient time to capture spending while creating a sense of urgency
Ensure the offer is timely and captures seasonal spending Optimal times are January, May, August and October
Deliver the marketing message on multiple channels Direct mail remains the primary acquisition channel but email is used to reinforce message and remind prospects to apply
Ensure that the application process is seamless and easy Despite the fact that most solicitations are via direct mail, 68 percent of applicants respond online²
Keep the marketing message succinct with messaging and visuals that highlight key benefits and competitive differentiators that appeal to that segment
  • Qualified applicants are inundated with offers
  • Consumer attention span is limited amid media clutter


Sources

  • ¹ Mintel: Credit Card Trends Report 2016.
  • ² Mintel Comperemedia U.S. Consumer Credit Card Acquisition Marketing Overview Q2 2016

Note: All best practice recommendations are provided for informational purposes only and should not be relied upon for marketing, legal, regulatory or other advice. Recommendations should be independently evaluated in light of your specific business needs and any applicable laws and regulations. Visa makes no representations about the accuracy or completeness of any best practice or other recommendations and is not responsible for your use of such best practice recommendations, or other information, including errors of any kind, contained in this article.

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