EVALUATE NEW CUSTOMER ACQUISITION STRATEGIES AND CREDIT CARD APPLICATION PROCESSING CYCLE TIME UNTIL FIRST CUSTOMER USAGE
Previous ServiceNext ServiceWe will determine productivity indicators and cost efficiency when the client completes the credit card application to credit approval to card issuance and delivery until the first card usage at the point of sale to establish an optimal delivery and activation term. An early onboard program that reinforces the value proposition of the credit card and encourages use helps develop the type of spending habits needed to become a top consumer of wallet credit cards. This requires a broader examination of the costs of new account acquisition associated with gaining a new cardholder.
It is estimated that 20% to 30% of the portfolio’s balance is based on the placement of new accounts from the previous year. Having a solid customer acquisition strategy is an essential component for the issuing card business. A customer’s card acquisition journey includes finding the card that best meets their needs, applying for it, and waiting for approval, card issuance, delivery, and activation. Today, the customer’s digital and online journey to apply for a card is not as straightforward or as efficient as possible. Card issuers must balance their risk and customer preferences during the acquisition of a new card. Issuers must deliver a fast and convenient process, including a mobile-friendly experience, in today’s digital world. Credit card application strategies can include but are not limited to telemarketing, direct mailings, print ads, take one application, and website or internet.
EFFORT TO ATTRACT AND OBTAIN NEW CREDIT CARD ACCOUNTS INCLUDE:
• Evaluate the effectiveness of each sales channel for obtaining new accounts.
• Develop and coordinate direct and indirect marketing programs to capture new accounts.
• Review placement goals by channel and product type, including preapproved direct mail, outbound telemarketing, face-to-face, internet and website, social networks, and outside agencies.
• Analyze the productivity of the personnel of new account acquisition.
• Evaluate preapproved programs to capture new accounts.
• Measure and manage the different marketing and promotion programs to obtain new accounts or additional accounts.
• Pre-approved offers account for a sizeable percentage of credit card enrollments. These are marketing campaigns where a firm offer of credit is made to a list of prospects, usually by conventional mail but sometimes by phone or email.
• Banks use a special event or in-person promotions in which bank representatives may be physically on location at a venue, such as a sports event, to advertise the products to the event’s attendees and participants.
• Take one promotion to involve applications that the customer can take from various locations, such as the bank’s branches or other locations.
• Online methods: With the rise of electronic environments, online marketing is popular and has many forms. For example, banks advertise credit cards on their websites, on facilitator sites (sites that promote various cards from various issuers), banner ads, and email solicitations.