Optimizing your credit program at every stage of the cardholder lifecycle

first_imgCreating exceptional consumer experiences throughout the cardholder lifecycle generates high levels of engagement and precious word-of-mouth marketing. When you achieve both of those objectives, you are two steps closer to a fully optimized credit card portfolio – a product that can generate up to a quarter of your credit union’s net income.What follows is a breakdown of the cardholder lifecycle, along with insight into workable, measurable strategies for optimizing cardholder experiences within each phase.ProductThe credit card landscape is very competitive and only becoming more so as the economy experiences an uptick and consumer confidence reaches pre-recession levels. A credit union issuer does not have to compete on every aspect of a credit card product. However, cards teams should design a compelling product that takes into account the features, terms and conditions offered by those issuers going after the same segment(s) of consumers.While it’s important to have a competitive annual percentage rate (APR), rates should not be the only factor that differentiates a card from what is offered by the competition. Consider features and benefits like:Multi-product benefitsNo foreign transaction feesBureau score and educationCell phone protectionPrice protectionLocal merchant discount programAccount GenerationA steady stream of new, financially healthy applicants will help keep your portfolio balanced and profitable. Today, credit unions have a plethora of channels through which to drum up new business. Consider the following omni-channel account generation opportunities.Branch: To get the most out of a branch sales strategy, set goals for each of your locations based on the overall sales goal of the credit card program and the member segment best represented by its location. Motivate front-line staff with achievable outcomes and incentives.Online: Generating applications online is a great way to reach younger generations. Be prepared for a lower approval rate, however, as you will tend to get more of what are known as “credit-seekers” through this channel. Credit seekers are individuals who apply for credit with above-average frequency, as they are often denied based on their less-than-stellar credit profile.Phone: Cross-selling through phone service channels can be very successful in the right environment. Follow-up calls to an acquisition campaign, for example, can provide a lift in overall response. Ensure you are following Telephone Consumer Protection Act (TCPA) guidelines with any efforts done via phone.Direct Mail: With the right segmentation and targeting strategy, direct mail is still extremely effective, even in the digital era. In fact, recent studies show it is still much more effective for response than email. Consider pre-approvals and response modeling to improve your success and cost per account.Email: Email has proven to have a much lower response rate than direct mail. However, the cost to deploy is also much lower, providing a higher ROI. Consider utilizing both direct mail and email in conjunction to maximize your new account acquisition results.Social Media: While generating applications may be difficult through social media, the proper strategy can definitely help you obtain referral business and engagement.Activation / UsageThe first 60 days of a new account is the most important time in the cardholder lifecycle. This is when card activation occurs, as does the best chance of earning top-of-wallet status. Therefore, having an early life-on-books strategy is key. Cards teams should strive for activation within the first 45 days. Follow-up campaigns to those who haven’t activated within 30 days are often very successful, particularly if paired with new cardholder perks.To establish top-of-wallet behavior, consider offering a first-use bonus, such as double or triple rewards points for the first 60 days. Another effective strategy is to offer bonus points for frequently recurring purchases, such as gas, groceries or regular payments, like utilities or auto loans. This establishes a pattern of behavior, puts the card in a default auto-pay position and quickly elevates your card from something new to something essential.Account ManagementEncourage cards and marketing teams to collaborate on the creation of an ongoing promotions calendar to keep your cardholders engaged. The goal should be to stimulate purchase activity and balance growth. Your calendar should also account for keeping cardholders engaged even during those times of the year when transactions typically lessen. Likewise, ensuring cardholders have you top-of-wallet during busy spending seasons will be important.Also, consider including strategies for ongoing line management and potential product upgrades. Recognizing and adapting to consumer life stages, like college graduation, marriage, a new job or retirement, will undoubtedly keep cardholders engaged. Remember, as more consumers automate the sharing of their personal data, more competitors are able to target them with customized and tailored credit card offerings. Staying attuned to the information your members are regularly sharing via social media, digital apps and retailer loyalty programs is important as you continue to compete inside the Big Data revolution.ServiceToday, every business is operating in the Age of the Consumer, where the voice of your member has a better chance of being heard and applied than ever before. For this reason, cards teams can’t overlook the importance of consistent and friendly cardholder service.Ensure your service representatives are properly trained to field questions and concerns. One bad experience can have far-reaching implications, as today’s connected consumers are not shy about sharing their impressions of a financial institution. Employ one-call resolution and staff empowerment strategies that give your representatives the control they need to ensure a positive outcome. Consider:Offering a courtesy fee waiver one time per yearAllowing reversal of finance charges under a certain dollar amountWaiving a replacement card fee with basic criteriaFor delinquent cardholders especially, it’s important to continue acknowledging the reasons they chose to do business with a credit union in the first place. Often, it’s because of the cooperative’s focus on individuals, not dollars. Therefore, an empathetic approach to collections – especially in the earlier stages – may be the most effective way to ensure payment while also providing a continued positive experience.Managing the consumer experience within each phase of the cardholder cycle can be simple. With just a few tweaks here or a minor adjustment there, your cards can turn into the type of product that reignites the loyalty of existing cardholders – and brings new ones through the door.To learn more about optimizing credit card portfolios, download the white paper “Getting the Most Out of Your Credit Card Program.” 65SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Jennifer Davis Davis is vice president of SmartGrowth™ for payments processor TMG, which offers clients across North America a full-suite of products from credit, debit and ATM to prepaid and digital wallet … Web: www.tmg.global Detailslast_img read more

Jokowi mulls option to move Idul Fitri collective leave to July

first_imgThe government announced on April 10 that it would move the four-day Idul Fitri collective to Dec. 28-31, nearing other year-end holidays, from the initial dates of May 26 to 29 to discourage people from taking part in the annual mudik (exodus) amid concerns of wider virus transmission. Jokowi’s administration later decided to ban mudik altogether and put in place strict measures and monitoring to prevent people from departing to their hometowns.Read also: COVID-19: Jakarta to restrict visitors after Idul FitriDoni went on to say that the decision on the dates of Idul Fitri collective leave largely depended on the flattening of the COVID-19 transmission curve and the public’s commitment to abide by large-scale social restrictions (PSBB).  According to the task force, a number of coronavirus red zones across the country had recorded lower transmission rates following PSBB implementation.However, Doni said it would take a rather a long time for the country to fully recover and that the public might need adjust to a “new normal” for the next several months by wearing masks and maintaining physical distance.”Everything depends on us; the more disciplined we are in obeying health protocols, the sooner things go back to normal,” he said.As of Monday, Indonesia had confirmed more than 11,192 COVID-19 cases and 845 deaths linked to the disease. (nal)Topics : President Joko “Jokowi” Widodo is considering moving the country’s Idul Fitri collective leave to July after previously deciding to push it back to December due to concerns over the novel coronavirus outbreak. COVID-19 task force head Doni Monardo said Presidential Chief of Staff Moeldoko had floated the suggestion to the President and other state officials during a meeting on Thursday.”The President wants us to consider which one is better, whether to put [the collective leave] together with Idul Adha in late July or to push it back to the end of this year,” Doni said as quoted by kompas.com, “There are still options [to change the dates].”last_img read more

Mississippi State’s mascot Bully narrowly avoids disaster vs. Auburn

first_img“Hey Bulldog Nation. Just want everyone to know I am fine!!” the tweet read. “I’m headed back out on the field now. Thanks for all the tweets and concerns. We love our fans!!!”Hey Bulldog Nation. Just want everyone to know I am fine!! I’m headed back out on the field now. Thanks for all the tweets and concerns. We love our fans!!! @SECNetwork @espn— MSU Bully Mom (@BullyXXI) September 28, 2019 Three takeaways from No. 10 Notre Dame’s win over No. 18 Virginia Three takeaways from No. 17 Washington’s win over No. 21 USC All of social media was very nervous Saturday as one of its most beloved heroes narrowly avoided disaster.Mississippi State mascot Bully XXI was minding his own business in the game Saturday when Auburn running back Jatarvious Whitlow went barreling out of bounds on a beeline for the canine.center_img Whitlow was pushed out of bounds and sprawled directly into Bully on the sideline. Oh sorry Bully. … hope he’s ok. pic.twitter.com/jbwS8lHLKJ— George Schroeder (@GeorgeSchroeder) September 28, 2019Fortunately, Bully apparently avoided a disaster as a Twitter account of the mascot posted soon after it was OK. Related Newslast_img read more