In fact, lack of credit education can give credit cards and the companies that issue them a bad reputation amongst consumers. Chase identified partnerships that were used to engage their existing and upcoming user bases: With most restaurant dining on hold, Chase Sapphire had to get creative to engage its new community of at-home chefs. Prior to joining Acuity in 2019, Deepak worked as a senior business analyst with a tier-1 global bank. 5. Monitoring ensures a campaign can be proactively evaluated, communication can be enhanced and the course corrected, if required. Customer segmentation is the technique of sub-grouping the market or customers based on similar characteristics. Dont dilute the contactless card benefit of security and safety. Brands can modernize their lead generation strategies with versatile creative, customized plans and personalized re-engagement. All Rights Reserved. Mintel: Amplify the digital call to actionDirect mail offers should lead with and amplify online response so prospects dont have to leave home and physically mail applications. Gen-Z and millennial in particular show high rates of adoption of digital wallets. executed and tracked mail programs, there may be opportunity for credit card We segment the market based on K-means clustering to group customers into homogenous clusters that are mutually exclusive. 2022 Media Logic USA, LLC. marketing, which uses native content and digital advertising on Affiliate Filing taxes early to get refunds is the top way Americans are planning to deal with holiday overspending. Comperemedia. Sources:1 Credit Card Acquisition During the COVID-19 Crisis. We believe, however, that credit cards are here to stay. This is an iterative process conducted to obtain an optimum number of segments within the data. A preliminary analysis of variables as shown above can also provide meaningful insights. A customers preferred channel/s of spending, based on their transaction history, can also be used. These groups are selected by random sampling in each segment separately, keeping the difference between the test group and the control group statistically significant. With people building their credit scores more easily, credit card companies are using this as an opportunity to advertise to a greater percentage of people who would be considered subprime (FICO score below 670 or so). Valentines Day is a time for ecommerce brands to reach consumers in the mood for love and shopping. Tags: contactless payments, COVID-19, credit card acquisition, credit card marketing, credit card marketing strategy, financial services marketing, offers, social media for financial services. consumer need) or, invest in balance transfer and 0% APR terms and reference in ad copy. carefully to validate if the absence of big issuer mail volume is an Media Logic InsightWe agree that an aspirational card sell is best avoided right now, preferring pragmatic card offers, a narrow focus on benefits/features (including digital tools) and capabilities. As consumer values continue to evolve, and the interest for contactless and electronic payment methods rise, the credit card wars have been reignited, and the battle for market share and long-term loyalty among credit card brands remains fiercely competitive. Consult internal resources and your Banks and major credit card brands, like American Express, Capital One, Discover, Chase and Citibank, are pivoting their brand messaging, personal credit card incentives and charitable partnerships to meet the new needs of their target audiences.

While designing a campaign, it is, therefore, important to assess communication channels impact. deemed minimal by experts, consumer sentiments about mail safety could decline. Each of these channels has its own benefits and limitations in terms of reach, cost, response rate and conversion rate. suggests1 and avoid relying on physical applications, which will In fact, as noted above, there is also Bank of America and Chase froze their credit card mailing programs in late March. 71% of Americans believe they possibly overspent during the holidays. As the effects of COVID-19 continue to shape many aspects of consumer behaviors, credit card marketers will need to go beyond rewards offers and promote messaging that aligns with the evolving needs of their target audiences. Credit card marketers need to embrace the moment, listen to their customers and tailor their marketing efforts to convert credit card users into life-long brand advocates by aligning with their values. April 2020. Suite 205 Reputation & Healthcare Marketing: Digital Trends in Patient Retention, Top 7 Financial Website Design Trends and Inspiration Going Into 2021, E-Commerce Shopping Cart Tips and Tricks for Driving Website Sales. Once we have identified our segments, we profile each segment to understand factors such as its spending behaviors and preferences, demographics, spending level, and income and credit situation. What many people don't realize is that local credit unions or community banks also offer solid credit card options. Top submissions were featured on Chases Instagram, Twitter and Facebook pages. By creating test-control groups, several touch points can be measured. Here are the five credit card acquisition strategies highlighted in the Mintel report, with supporting examples and supplemented with Media Logics team insights: 1. P:407-302-4416, 211 E. Virginia Street Over 40% of households carry credit card debt and people aren't sure what's available to them to try and get that paid down. Consumers will likely remain loyal to the brands that have consistently displayed empathy and relatability and can continue to connect and engage target markets in the areas where they are interested, passionate and require assistance. In fact, Chase increased spend 114% for ad copy referring to the contactless value proposition. investing in acquisition marketing. Although brick-and-mortar sales in most industries fell in the first half of 2020, consumers spent $368.8 billion via online transactions. Shifting marketing from physical to digital, and expanding target groups makes this the perfect time for companies to acquire new members. invest in grocery- or supermarket-related keywords, reference grocery/supermarket rewards in your ad copy (aligns with American Express created a solution to that problem just in time for the return of the basketball season, partnering with the NBA to provide a unique offer to cardholders. The Official Blog of Acuity Knowledge Partners, Published on November 9, 2020 by Deepak Chaturvedi. Creating test and control groups in the segments is considered standard practice in measuring a campaigns effectiveness. Higher-priced experiences, such as travel and entertainment, have largely been shut down for nearly six months, and options for dining out are limited. According to the U.S. Federal Reserve, revolving consumer debt is at its lowest level since the Great Recession, falling to $996 billion nationwide in May. Nicole Johnson, Group Director. We can use some of the variables available as segmentation variables and the remainder when profiling the segments. Social media has experienced a staggering growth rate since 2004, and its not pumping the brakes any time soon. Prominent merchants also offer some type of additional benefit associated with card issuers in the form of merchant-specific private-label credit cards (PLCCs) or co-branded cards.

Discover launched its latest campaign in July, bringing together sentiments from the COVID-19 economic downturn and Americas renewed focus on the importance for social justice and equality. Digital Media Solutions and its logos are trademarks or registered trademarks of Digital Media Solutions, LLC. Mercator Advisory Group confirms that consumers are flocking to these stores, making them highly relevant. 2021 Digital Media Solutions, LLC. The analysis begins with cleaning the data by removing outliers and treating missing values. Test out a new acquisition channel or new approach using social channels. RESEARCH-BASED, STRATEGICALLY FOCUSED *MARKETING*, DEVELOPING *BRAND-BUILDING* WEB EXPERIENCES, STRENGTHENING YOUR *COMMUNITY* AND YOUR BOTTOM LINE, Credit Card Marketing Trends: Alleviating Consumer Confusion, 72% of respondents check the credit of prospective employees, one American in two has a co-branded card and 64% of them use their cards at least once a month. Based on these clusters, we can devise a clear targeting strategy that focuses on each groups intrinsic spending behavior to either increase the customers wallet share/accelerate their spending/re-activate disengaged customers/provide promotional offers or incentivize the most-valued customers. On the flip side, the decline A recent survey conducted by CareerBuilder found that 72% of respondents check the credit of prospective employees. Eater committed to matching all donations made during the live stream and, through collective efforts, Chase Sapphire and Eater raised more than $2 million from May 4 to May 8 for the World Central Kitchen. 4. Although your credit union may just be a dial away, members are Credit Union Marketing, Digital, Diversity, Equity and Inclusion, Financial Services, Marketing, Strategy. Subject lines represent a make-it or break-it opportunity to get email opened. marketing (SEM): Chase, Citi and AmEx increased month-over-month SEM spend by a Media Logic is a registered trademark of Media Logic USA, LLC. Memphis, TN 38117 Working with cardholders in mind, Apples new credit card uses color-coded purchases to make it easy for consumers to have a clear idea of where the money they spend goes. Don't worry you're not alone. Additionally, balance transfers, 0% APR, and contactless payments grew in popularity as consumers hunt for ways to manage money during a global pandemic. There are other KPIs as well, such as the profit-to-cost ratio, the click-through rate and the conversion rate. And in many cases, consumers dont realize that credit can affect every aspect of their lives. The collateralised loan obligation (CLO) market grew significantly .Read More, : LIBOR transition , CLO , credit, SEC has recently published Marketing Rule 206(4) that applies to investment advisors. After structuring the data, it will be easy to spot certain existing groups: Based on the average spending ticket size, transaction amount and off-us potential: Frequent spenders with high off-us potential, Medium spenders with high off-us potential, Less frequent spenders with high off-us potential. Metaverse marketing is likely to be a part of future strategies for brands & businesses, but many are taking a wait and see approach while relying on the tried & true, like performance marketing.