RANCHO CUCAMONGA, Calif. – Noting more than half of all credit cardholders use their card every day, CO-OP Financial Services has issued a new white paper, “How to Succeed in the Credit Card Business: A Blueprint for Credit Unions.”
“The paper outlines the revenue and growth potential credit cards represent for today’s credit unions,” said Deb Wieczorek, VP- Strategic Advisory and Portfolio Growth, for CO-OP. “And as it says on the opening page, ‘by all measures, credit cards present a promising growth opportunity for credit unions, and when managed strategically can become a highly profitable product line.’”
Taking into consideration several credit union trends, CO-OP said the paper provides valuable insights about a range of touchpoints across the cardmember journey. These include strategies for boosting a credit card program’s penetration, activation and usage (PAU) by engaging the member through targeted solutions like rewards, mobile and custom marketing campaigns, the company added.
Best Practices
Among the best practices explored in greater depth in the free guide are:
Activate More Cardholders and Drive Engagement
- Engage a new cardholder within the first 90 days following approval.
- Offer fixed rates over variable rates to remain competitive and limit exposure to price compression.
Drive Loyalty through Rewards
- Deploy seasonal offers, such as spend incentives based on specific holidays.
- Establish a local rewards program that nurtures relationships with local businesses, showcases ties to the community and differentiates the card from big-bank competition.
Provide Highly Personalized and Mobile Experiences
· Offer access to digital wallet solutions to achieve top-of-phone and default payment method positioning.
· Provide human-centric, personalized service to prove members can trust the credit union with the appropriate use and protection of their personal data.
The paper can be downloaded here.
Webinar Planned
CO-OP said it will be exploring the findings of this white paper and pursue many other topics and issues related to credit programs in a free “How to Optimize Your Credit Portfolio” webinar scheduled for August 20, at 11 a.m. PT. Participants will learn valuable insights from industry experts CO-OP said, including members of its SmartGrowth team, who offer specialized consulting engagements leveraging data analytics, marketing campaigns and ongoing optimization strategies to help credit unions reach their portfolio growth goals.
To register, visit the webinar home page here.