The proportion of credit card customers who use online channels to perform basic tasks continues to increase, with those who use a smartphone or tablet preferring different experiences from those who use a computer, according to our J.D. Power and Associates 2012 Credit Card Website Evaluation StudySM (CCWES) released today.
The inaugural study examines the . . . Continue Reading Credit Card Customer Website Expectations
As appeared in The Financial Brand on September 11, 2012. The Financial Brand, written and published by Jeffry Pilcher, is an online publication focusing on issues and advice that affect bank and credit union brands.
Customers are happier now that credit card companies are making less changes to the ways their programs are . . . Continue Reading Credit Card Customers Happier With Fewer Changes
Do you know about our inaugural J.D. Power and Associates 2012 Credit Card Website Evaluation Study? We’ll publish it on October 4th, and we’re excited to share some of the research details with you!
The websites of credit card issuers serve as a major portal for customers to service their accounts and obtain information . . . Continue Reading 2012 Credit Card Website Evaluation Webcast
Rewards is a primary driver of switching and selection in the credit card industry. This is especially true among Transactors,(1) who cite rewards as the primary reason for selecting their primary card, as well as the primary reason for leaving their previous credit card issuer. Notably, rewards has also become an important driver of . . . Continue Reading Are Rewards Programs Rewarding?
According to our 2012 U.S. Credit Card Satisfaction Study released late last week, the competitive environment is stabilizing and credit card issuers are making substantial strides in improving areas that were previously problematic—particularly communication and problem resolution. So, what comes next? How are customer expectations changing, and what are the implications for issuers? Where should issuers focus their efforts in the future?
1. Digital channels and self-service
The shift to online use and away from phone and mail continues. Customers are performing more routine activities online, such as reward-related activities, and are contacting call centers less often with questions or requests and are beginning to seek answers via self-serve channels, such as online. In fact, data from our 2012 Credit Card Satisfaction Study indicates that customers are attempting to resolve problems on their own and are moving away from contacting the call center for simple problems, but contacting the call center to deal with more complex issues.
2012 J.D. Power and Associates U.S. Credit Card Custom Satisfaction Study©. The McGraw-Hill Companies, Inc. All Rights Reserved.
In addition, 7% of customers indicate using a mobile device to interact with their credit card issuer, and 5% have used social media for service transactions. Another emerging trend related to the increased use of digital channels for routine transactions and greater reliance on self-service tools is that the issues about which customers contact the call center are becoming increasingly complex. This has important implications for the role of the call center and the requirements for call center representatives.
THE POINT: Not only will issuers need to continue to commit resources to online as the workhorse for routine transactions, but they will also need to simultaneously invest in and develop these emerging online channels since customers prefer this method of communication above all others. Knowledgeable employees that are able handle complex problems are a necessity.
2. Rewards and Communication
An examination of recent success in the market, as defined by the highest-performing issuers, American Express and Discover Card, and the most improved issuers, Chase and Barclaycard, shows that two drivers of advantage in the past—rewards programs and customer communications—will continue to provide an expanding competitive edge in the future. Continue reading ›
2012 Primary Mortgage Servicer Satisfaction Study
Increasing governmental oversight, the credit crisis, the overall state of the economy, and negative media coverage have created a challenging environment for the mortgage servicing industry. To help mitigate these negative effects, mortgage servicers need to understand and apply key best practices that result in the highest levels . . . Continue Reading Two Research Insights Too Big To Miss!
With the Consumer Financial Protection Bureau expanding oversight beyond credit cards into other areas of financial services such as Mortgages, a reasonable question arises as to what bankers can do to keep the CFPB from becoming involved with a bank’s customers. The bureau represents an alternative to which over 9,000 consumers have already turned with complaints or problems, based on a co-presentation I gave with Marla Blow of the CFPB at last week’s Card Payments Forum. Ms. Blow described how the Bureau operates in expeditiously cataloguing, communicating and tracking problems in coordination with credit card issuers.
It is a laudable objective on behalf of cardholders, but what if anything can the issuers be doing themselves to avoid the involvement of the CFPB in the first place? In the work I did preparing the presentation for the Forum and the findings from J.D. Power’s 2011 Credit Card Satisfaction Study, issuers can and should do three things to help keep the regulators at the CFPB at bay when addressing cardholders’ complaints.
1. Educate customers to avoid problems in the first place
Customer education through transparent communication is one of the best ways to reduce a problem or complaint from arising in the first place! J.D. Power’s 2011 Card Study showed that both Transactors (who pay off balances each month) and Revolvers (those who carry balances) benefit from better understanding of their credit card terms. When these card holders completely understand their terms, only 8-9% report having had a problem or issue over the last 12 months. Compare that incidence rate to cardholders who do not understand their terms, where 12% of Transactors and a whopping 21% of Revolvers had problems when they lack understanding of their terms.
2. Empower frontline staff to enable First Contact Resolution
The ability to address and resolve customer issues at the initial point of contact goes great strides to satisfying customers and Continue reading ›
The CARD Act of 2009 has been in force for over two years, but it may be too early to celebrate. While the Act resulted in several changes to card terms, such as interest rates, late fees and payment dates, there is clearly still room for improvement. In a recent press release, Raj Date . . . Continue Reading …But Will Cardholders Be Any Smarter?