Table of Contents
Scope and Themes
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- What you need to know
- Scope of this report
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Industry snapshot
- Current marketing trends
- Competitive landscape
- Targeted marketing
- Marketing to males and females
- Marketing to specific age groups
- Marketing to specific income groups
- Mintel’s consumer survey—rewards programs
- Consumers and rewards redemption
- Tracking rewards
- Direct mail acquisition vs. email
- Consumers and contactless
- What’s ahead
- Online and mobile payments
- Other groups
Market Drivers
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- The credit card consumer
- Statistical overview
- Tightening economy impacting payment behavior
- Amount paid off each month
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- Figure 1: Credit card payment behaviors, 2006
- Credit cards and the family budget
- Impact of health/medical expenses
- The credit card and merchants
- Merchants challenging interchange fees, alternatives to major cards
- Alternatives with lower interchange fees
- Credit card rewards programs
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- Figure 2: Rewards types, by issuer, as a percentage of all acquisition mailings offering rewards, January-March 2007
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- Figure 3: Credit cards rewards offers, by income—percentage of mail volume for issuers rewards acquisition mailings, January-April 2007
- No card required—new developments
- Growth of debit rewards—challenge to credit cards
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- Figure 4: Users of debit reward cards, by age, 2006
- Different generations want different rewards
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- Figure 5: Frequency of application for credit card (s), by age, February 2006
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- Figure 6: Credit cards rewards offers, by age—percentage of mail volume for issuers rewards acquisition mailings, January-April 2007
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- Figure 7: Examples of Credit card rewards offerings, by age, June 2007
- Cards for teens and young adults
- Increasing influence of the “Affluent”
- Traits of the super-wealthy
- Merchants increasing rewards for best customers
- Loyalty programs saturating the market
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- Figure 8: Frequency of application for credit card (s), by income, February 2006
- Preferred rewards vary
- Challenges for rewards programs
- Rewards not being redeemed
- Spending and saving
- Rewards offers not especially relevant to consumers
- Consumers more instrumental in driving rewards
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- Figure 10: Preferred rewards, 2004
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- Figure 11: Preferred rewards for redeeming airline programs points, 2004
- Preference for discounts
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- Figure 12: Loyalty program membership, by age, 2004
- Rewards programs encouraging behaviors
- Card usage
- Increasing usage of cards for small payments
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- Figure 13: Fast food purchases by credit card, 2000-06
- Encouraging consumers to transact online
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- Figure 14: Percentage of Internet households paying bills online, 2002-07
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- Figure 15: Online households and online banking households, 2004-10
- Rewards for online bill paying
Competitive Landscape
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- Recent trends
- Cashback reward kings
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- Figure 16: Key cashback rewards programs, by issuer, 2007
- “Multi” opportunities to earn rewards
- Rewarding debit with miles
- Flexible rewards
- “Green” rewards + healthcare
- Mortgage rewards
- Specialty shopper rewards
- Socially conscious and affinity rewards
- “Coalition” or savings rewards
- Cards and rewards for the unbanked
- Contactless cards and benefits
- Cards for business
- Recent trends
- Priorities for small business owners
- New offerings
Advertising and Promotion
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- Direct mail
- Preferred method of responding to direct mail
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- Figure 17: Preferred ways of responding to direct mail, 2003 and 2007
- Segmented advertising
- Television
- Examples of television advertising
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- Figure 18: American Express television advertisement, 2007
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- Figure 19: American Express television advertisement, 2007
- Figure 20: American Express television advertisement, 2007
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- Figure 21: Capital One television advertisement, 2007
- Figure 22: Capital One television advertisement, 2007
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- Figure 23: Chase television advertisement, 2007
- Figure 24: Chase television advertisement, 2007
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- Figure 25: Visa television advertisement, 2007
- Figure 26: MasterCard television advertisement, 2007
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- Figure 27: Best Western hotels television advertisement, 2007
- Figure 28: Hyatt Hotels television advertisement, 2007
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- Figure 29: Hyatt Hotels television advertisement, 2007
- Figure 30: Crown Plaza television advertisement, 2007
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- Figure 31: Orbitz television advertisement, 2007
- Interactive TV and email
- Examples of email marketing solicitations
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- Figure 32: Examples of subject lines (“teasers”) for both acquisition and retention email s, January-June 2007
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- Figure 33: Email users as percentage of Internet users and total U.S. population, 2003-10
- Comperemedia SPAM scores
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- Figure 34: SPAM scores for rewards acquisition emails for major card types—percentage of total emails,
- Obstacles to marketing via email
The Consumer
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- Credit card usage
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- Figure 35: Has used a credit card in the last three months, by gender, June 2007
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- Figure 36: Has used a credit card in the last three months, by age, June 2007
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- Figure 37: Has used a credit card in the last three months, by income, June 2007
- Type of card used most frequently
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- Figure 38: Type of credit card used most frequently, by gender, June 2007
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- Figure 39: Type of credit card used most frequently, by age, june 2007
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- Figure 40: Type of credit card used most frequently, by income, June 2007
- What would increase usage?
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- Figure 41: Factors most likely to increase credit card usage, June 2005
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- Figure 42: Factors most likely to increase credit card usage, by gender and age, June 2007
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- Figure 43: Factors most likely to increase credit card usage, by income, June 2007
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- Figure 44: Factors most likely to increase credit card usage, by type of card used most frequently, June 2007
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- Figure 45: Factors most likely to increase usage, by race/ethnicity, June 2007
- Loyalty and concerns
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- Figure 46: Factors most likely to have a negative impact on credit card usage, by gender, June 2007
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- Figure 47: Factors most likely to have a negative impact on credit card usage, by age, June 2007
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- Figure 48: Factors most likely to have a negative impact on credit card usage, by age, June 2007
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- Figure 49: Factors most likely to have a negative impact on credit card usage, by gender, June 2007
- Incidence of reward redemption
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- Figure 50: Number of times rewards have been redeemed, by gender and age, June 2007
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- Figure 51: Number of times rewards have been redeemed, by income, June 2007
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- Figure 52: Number of times rewards have been redeemed, by type of card, June 2007
- Difficulty in redeeming rewards
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- Figure 53: Difficulty in redeeming rewards, by gender and age, June 2007
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- Figure 54: Difficulty in redeeming rewards, by income, June 2007
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- Figure 55: Difficulty in redeeming rewards, by type of card, June 2007
- Tracking rewards
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- Figure 56: Accounting for rewards miles/points earned, by gender and age, June 2007
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- Figure 57: Accounting for rewards miles/points earned, by income, June 2007
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- Figure 58: Accounting for rewards miles/points earned, by type of card, June 2007
- Likely impact of added communication on increasing redemption
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- Figure 59: Likelihood of redeeming rewards if updates are sent, by gender and age, June 2007
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- Figure 60: Likelihood of redeeming rewards if updates are sent, by income, June 2007
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- Figure 61: Likelihood of redeeming rewards if updates are sent, by type of card, June 2007
- Would updates on reward status increase card usage?
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- Figure 62: Likelihood of increasing usage if rewards updates are sent, by gender and age, June 2007
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- Figure 63: Likelihood of increasing usage if rewards updates are sent, by income, June 2007
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- Figure 64: Likelihood of increasing usage if rewards updates are sent, by card type, June 2007
- Likelihood of responding to email ads for credit cards
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- Figure 68: Likelihood of response to an email advertisement offering rewards, by race/ethnicity, June 2007
- Concerns about responding to email solicitations for credit cards
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- Figure 69: Concerns about responding to email solicitations for credit cards, by gender, June 2007
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- Figure 70: Concerns about responding to email solicitations for credit cards, by age, June 2007
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- Figure 71: Concerns about responding to email solicitations for credit cards, by income, June 2007
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- Figure 72: Concerns about responding to email solicitations for credit cards, by card held, June 2007
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- Figure 73: Concerns about responding to email solicitations for credit cards, by race/ethnicity, June 2007
- Likelihood of opening email and direct mail received from own credit card companies
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- Figure 74: Likelihood of opening email and direct mail received from respondents’ own credit card companies, by gender, June 2007
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- Figure 75: Likelihood of opening email and direct mail received from respondents’ own credit card companies, by age, June 2007
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- Figure 76: Likelihood of opening email and direct mail received from respondents’ own credit card companies, by income, June 2007
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- Figure 77: Likelihood of opening email and direct mail received from respondents’ own credit card companies, by primary card used, June 2007
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- Figure 78: Likelihood of opening email and direct mail received from respondents’ own credit card companies, by race/ethnicity, June 2007
- Making payments using contactless technology
- Overall interest in making payments using contactless technology
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- Figure 79: Interest in contactless technology, by gender and age, 2006 and 2007
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- Figure 80: Interest in contactless technology, by income and race/ethnicity, June 2007
- Interest in mobile payments
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- Figure 81: Interest in contactless technology using a cell phone, by gender and age, June 2007
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- Figure 82: Interest in contactless technology using a cell phone, by income and race/ethnicity, June 2007
- Concerns about mobile payments
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- Figure 83: Mobile contactless technology using a cell phone—concerns about usage, by gender and age, June 2007
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- Figure 84: Mobile contactless technology using a cell phone—concerns about usage, by income, June 2007
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- Figure 85: Mobile contactless technology using a cell phone—concerns about usage, by race/ethnicity, June 2007
- Interest in contactless technology if additional rewards were offered
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- Figure 86: Mobile contactless technology using cell phone—willingness to use if additional reward points/miles were offered, by gender and age, June 2007
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- Figure 87: Mobile contactless technology using cell phone—willingness to use if additional reward points/miles were offered, by income, June 2007
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- Figure 88: Mobile contactless technology using cell phone—willingness to use if additional reward points/miles were offered, by race/ethnicity, June 2007
Future Trends
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- Internet banks
- Mobile banking
- Testing the waters with phone payments
- Small businesses continue as growth area
- Seeking individuality in cards
- Payment alternatives for the “unbanked”
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- Figure 89: Usage of specific credit cards among consumers without bank accounts, 2006
- Potential in marketing to Hispanics
- Women in business good candidates for credit card rewards
Appendix: Advertising and Promotion
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- Figure 90: American Express Delta SkyMiles direct mail advertisement, Q4 2006
- Figure 91: Chase direct mail advertisement, Q4 2006
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- Figure 92: Citibank direct mail advertisement, 2006
- Figure 93: LL Bean Visa direct mail advertisement, 2006
- Figure 94: Discover email advertisement, 2006
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- Figure 95: Citibank direct mail advertisement
- Figure 96: Discover card direct mail advertisement, 2006
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- Figure 97: Citi AAdvantage direct mail advertisement
- New product offers – Q1 2007
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- Figure 98: HSBC “Totally Me” campaign direct mail advertisement, 2007
- Figure 99: Washington Mutual “Real Rewards” Direct mail advertisement, 2007
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