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Market Research Report
Co-Branded and Affinity Credit Cards in the U.S., 3rd Edition
| Published by |
Packaged Facts |
| Published |
November, 2009 |
Product code |
103033 |
| Content info |
266 pages |
| Price |
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Co-Branded and Affinity Credit Cards in the U.S., 3rd Edition published by Packaged Facts in November, 2009. This report consists of 266 pages and the price starts from US $ 3750.
Abstract
The market for co-branded and affinity cards is over two decades old. Issuers
have worked to make payment cards more attractive to cardholders through
value-adding initiatives such as rebates and rewards. This has been a major
growth driver in the co-branded and affinity card space over the past few
years, but there is some evidence that the pendulum has begun to swing in
favor of proprietary bank reward programs.
In the U.S., where the market for co-branded and affinity card is
extraordinarily mature, experts interviewed by Packaged Facts estimate that
between one quarter and one third of the plastic held by Americans are
co-branded or affinity cards. And because co-branded and affinity credit,
payment and debit cards have become such an integral part of the U.S. card
industry, the growth of this market cannot be separated from the shift in
consumer payment preferences from paper to plastic and electronic vehicles,
and from the huge expansion in U.S. consumer indebtedness. Other forms of
mobile payments, such as contactless cards, mobile phones and contactless
watches are gaining traction.
As the U.S. market matures - and possibly plateaus - issuers are seeking new
growth opportunities in Europe, Asia and other regions. However, there are
wide variations in the extent to which consumers, issuers and merchant
partners in the various national markets have embraced co-branding.
Scope of the Report
Packaged Facts' 2009 report, Co-branded and Affinity Cards Market in the U.S.,
examines how the market and players have changed over the past two years, and
answers important questions including:
- What new products are co-branding partners offering?
- What new segments offer the most opportunity?
- How are international markets evolving?
- How are partners coping with the world' s grim economic realities?
- What is the best advice experts have to offer?
In addition, this report features the results of Packaged Facts' 2009
proprietary consumer survey, which explores co-branded and affinity card
usage, front-of-wallet, most desired card features, channels and card
information sources.
Methodology
Packaged Facts' study of co-branded and affinity cards is based on extensive
secondary research and interviews with industry and regional experts.
Secondary sources include data-gathered from relevant trade, business, and
government sources, including card industry journals, trade and general press
(print and electronic), annual reports and 10(k) filings, company literature,
consultancy publications, Packaged Facts reports, websites and white papers.
Interviews were conducted with representatives of Discover, Visa, Visa Europe,
Capital One, Kroll-Info Americas, Maritz Inc., Auriemma Consulting Group and
other marketing and consulting firms operating in the co-branded and affinity
card space.
Packaged Facts' analysis of consumer behavior and demographics derives from
the our Custom Online Survey of 2,606 adults, Experian Simmons Market Research
Bureau' s (New York, NY) adult consumer surveys, which are based on
approximately 25,000 respondents age 18 or over.
About the Author
An expert in primary research, Te Revesz is the principal of Revesz
International and Kentera Associates. She has conducted thousands of in-depth
interviews with business, political and labor experts around the world. She
was featured in Super Searchers Go to the Source as one of the US' s top
primary researchers. Prior to founding Kentera Associates, Te headed the
Healthcare and Industrial Practices of FIND/SVP' s Strategic Consulting and
Research Group and was its International Practice Coordinator. She was also a
Director of FIND' s Signia Partners division. Before joining FIND, Te served at
Business International as Director of North American Publications,
Editor-In-Chief of its global newsletter, and helped create BI' s global risk
assessment product. She also worked at Prudential-Bache' s financial planning
group and at Citibank' s Washington Representative Office.
What You' ll Get in this Report
Co-Branded and Affinity Credit Cards in the U.S. makes important predictions
and recommendations regarding the future of this market, and pinpoints ways
current and prospective players can capitalize on current trends and spearhead
new ones. No other market research report provides both the comprehensive
analysis and extensive data that Co-Branded and Affinity Credit Cards in the
U.S. offers.
Plus, you' ll benefit from extensive data, presented in easy-to-read and
practical charts, tables and graphs.
How You Will Benefit from this Report
If your company is already doing business in the co-branded and affinity
credit card market, or is considering making the leap, you will find this
report invaluable, as it provides a comprehensive package of information and
insight not offered in any other single source. You will gain a thorough
understanding of the current market for co-branded and affinity credit cards,
as well as projected markets and trends through 2012.
This report will help:
- Marketing Managers identify market opportunities and develop targeted
promotion plans for co-branded and affinity credit cards.
- Research and development professionals stay on top of competitor
initiatives and explore demand for co-branded and affinity credit cards.
- Advertising agencies working with clients in the banking and retail
industries understand the product buyer to develop messages and images that
compel consumers to use co-branded and affinity credit cards.
- Business development executives understand the dynamics of the market and
identify possible partnerships.
- Information and research center librarians provide market researchers,
brand and product managers and other colleagues with the vital information
they need to do their jobs more effectively.
Table of Contents
Chapter 1: Executive Summary
- Scope of the Report
- Overview
- Definitions: Co-branded versus Affinity Cards
- Players: Links in the Co-branded and Affinity Cards' Value*
- Methodology and Sources
- Expert Interviews
- Simmons Experian Surveys
- Packaged Facts Conducts Custom Survey
- Market Size and Trends
- Consumers' Payment Preferences
- Credit and Debit Cards in Force Continue to Show a Saturated U.S. Market
- Forces Driving Consumer Card and Co-branded Card Usage
- U.S. Consumers Walloped
- Contracting U.S. Consumer Credit
- Card Issuers Winnow Their Portfolios, Cut Rewards, Homogenize Reward
Programs
- Reward Programs a Major Co-branded Card Market Driver
- Figure 1-1: U.S. Rewards-Based Credit Cards versus General Purpose
Credit Cards Without Rewards, 2003 vs. 2007 vs. 2011(F)
- Co-branded Cards in Force
- One in Five U.S. Cardholders has an A/S Credit Card
- Packaged Facts Custom Survey Finds More than Half of Consumers Own
Co-branded or Affinity Cards
- Figure 1-2: Ownership of Partnership and Sponsor Cards, February 2009
- Co-branding Around the World
- International Payment Trends
- Table 1-1: Use of Payment Instruments by Non-banks: International Card
Payment Trends, 2003 vs. 2007
- Europe Co-branding Market: “Hugely Different from the U.S.”
- Latin America: Growing Middle Class Generates Issuer/Partner Interest
- Asia: A Patchwork Quilt
- Consumer Demographics & Psychographics
- Online Consumers Higher Users of Co-branded and Affinity Cards
- Figure 1-3: Generational Patterns for Ownership of
Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009 (by
percentage and index)
- Non-Hispanic Whites and Asians Favor A/S Cards; Blacks and Hispanics Are
Underrepresented
- A/S Card Owners More Financially Secure and Financially Savvy than the
Average Consumer
- The Competitive Arena: Brand Networks
- Credit Card Industry is Undergoing Major Changes
- Payment Networks and Their Brands
- Ownership and Use of Co-branded and Affinity Cards
- Fewer Own Co-branded or Affinity Debit Cards
- Figure 1-4: Ownership of Network Branded Co-branded and Affinity
Cards, 2009
- Marketing Dynamics
- Decision Drivers and Information Sources
- With All Those Carefully Crafted Benefits, What Really Matters to
Co-branded and Affinity Card Users?
- Table 1-2: Features That Drive Acquisition of Co-branded and Affinity
Cards versus Standard Cards
- Where Do Marketers Spend Their Money
- Branches are Bastion of Card Promotion - the Buzz Word is CRM
- Communicating with the Consumer via the Internet
- Email Marketing: Boosting Co-branded Card Use
- Small Business - Lots of Opportunity for Co-branders
- Gen Y: Internet Lovers Who Embrace Co-branded and Affinity Cards
- Boomers - Still Influential, But Saving More and Spending Less
- Ethnic Marketing
- Going Forward
- Legal Challenges in the U.S. to the Credit Card Reform Act of 2009
- Emerging Payment Products: A Structural Break
- Mobile Payments (mPayments): Are the Golden Days of Plastic Cards Over?
- Co-branding a Mobile Phone?
- Social Networking
- Gen Y: the Sweet Spot for Social Network Co-branded Card Marketing
- But Do Social Networkers Go On to Visit Financial Sites?
- Co-branding and Social Networking
- The Co-branding Advantage That Issuers Crave
- Sizing the Future of Co-branding in the U.S.
Chapter 2: Market Size and Trends
- Consumers' Payment Preferences
- Table 2-1: U.S. Consumer Payment Preferences, In-store Payment Mix,
2003-2008
- Table 2-2: Consumer Payment Preferences, Internet Payment Vehicles, 2005
versus 2008
- Credit and Debit Cards in Force Continue to Show a Saturated U.S. Market
- Table 2-3: U.S. Credit and Debit Cards, Transactions and Terminals,
2003-2008
- Card Usage Growth Tops 12% CAGR
- Figure 2-1: U.S. Debit and Credit Card Transaction Volume, 2003-2007
- Figure 2-2: U.S. Debit and Credit Card Transaction Value, 2003-2007
- New Cards Increase and Dormant Cards Awake
- More U.S. Consumers Using Plastic for Small Payments
- Forces Driving Consumer Card and Co-branded Card Usage
- Global Financial Crisis
- U.S. Consumers Walloped
- Contracting U.S. Consumer Credit
- Figure 2-3: Outstanding Consumer Credit, 1990-Q1 2009
- Table 2-4: Percentage Change in Outstanding Consumer Credit, 2006-July
2009
- Bankruptcies and Credit Card Defaults and Delinquencies Rising Sharply
- Figure 2-4: U.S. Non-Business Bankruptcy Filings, 2000-2009(F)
- Figure 2-5: U.S. Credit Card Charge Offs and Delinquency Rates (All
Banks), Q1 2000-Q1 2009
- Card Issuers Winnow Their Portfolios, Cut Rewards, Homogenize Reward
Programs
- Lasting Impact on U.S. Consumer Spending and Charging?
- Figure 2-6: U.S. Retail Sales Decline Sharply between Q1-2008 and Q1-2009
- Consumers Switching from Credit to Debit Cards
- Reward Programs a Major Co-branded Card Market Driver
- Figure 2-7: U.S. Rewards-Based Credit Cards versus General Purpose
Credit Cards Without Rewards, 2003 vs. 2007 vs. 2011(F)
- Sizing the U.S. Co-Branded and Affinity Card Market
- Consumer Ownership and Use of Co-branded and Affiliation Cards
- One in Five U.S. Cardholders has an A/S Credit Card
- Table 2-5: Consumer Ownership and Use of A/S Credit Cards by Type,
Summer 2008
- Figure 2-8: Trends in A/S Credit Card Ownership and Use, 2004-2008
- Other Surveys
- Packaged Facts Custom Survey Finds More than Half of Consumers Own
Co-branded or Affinity Cards
- Figure 2-9: Ownership of Partnership and Sponsor Cards, February 2009
- Co-branded Cards in Force
- Figure 2-10: Co-branded and Affinity Credit Cards Issued in the U.S.,
2003-2008
- Figure 2-11: Co-branded and Affinity Credit Card Transactions, 2003-2008
- Affinity Card Programs on a Plateau Since 2007
- In the Wallet, Yes. But Do Consumers Use Them?
- Figure 2-12: What Kinds of Co-branded and Affinity Cards are Used
Regularly?
- Packaged Facts Survey: 29% of Consumers Keep a Co-branded or Affinity
Card in the Front of their Wallets
- Figure 2-13: Ownership and Use of Partnership and Sponsor Cards,
February 2009
- Proprietary Bank Rewards Programs versus Co-branded and Affinity Cards
- Table 2-6: Edgar Dunn Study on Consumers' Preferred Credit Cards, 2000
vs. 2004 vs. 2006
Chapter 3: Co-branding Around the World
- International Payment Trends
- Table 3-1: Use of Payment Instruments by Non-banks: Check and E-Payment
Trends, 2003 vs. 2007
- Table 3-2: Use of Payment Instruments by Non-banks: International Card
Payment Trends, 2003 vs. 2007
- Table 3-3: Trends in the Use of Payment Instruments by Non-banks, 2003
vs 2007
- The Global Economy, Doldrums for Some, Crisis for Others
- Table 3-4: World GDP and Private Consumption Growth, 2007-2011
- Table 3-5: High Income Countries GDP and Private Consumption Growth,
2007-2011
- Table 3-6: Euro Zone GDP and Private Consumption Growth, 2007-2011
- Table 3-7: East Asia/Pacific Region GDP and Private Consumption Growth,
2007-2011
- Table 3-8: South Asia Region GDP and Private Consumption Growth,
2007-2011
- Table 3-9: Middle East and North Africa GDP and Private Consumption
Growth, 2007-2011
- Table 3-10: Latin America and the Caribbean GDP and Private Consumption
Growth, 2007-2011
- Europe Co-branding Market: “Hugely Different from the U.S.”
- France: Visa and MasterCard Enter Co-branding in 2007
- Europe' s Co-branding Central
- Spain: Separation of Credit Lines
- Turkey Takes a Multi-Partner Route
- Scattered Activity Elsewhere in Europe
- The Gulf: Co-branders Target “Distinguished” Customers
- Latin America: Growing Middle Class Generates Issuer/Partner Interest
- Mexico: Aggressive Growth Until the Crisis
- Asia: A Patchwork Quilt
- Olympics Serve as Springboard for Chinese Market
- Hong Kong' s Bank of Communications Seeks Strategic Business Partnerships
for Co-branding
- India: A Growth Magnet for Co-branders
- Multi-Function Smart Cards Drive Taiwan' s Market
- Going Their Own Way
Chapter 4: Consumer Demographics & Psychographics
- About the Experian Simmons Data
- Statistically Accurate Cross-Section of the U.S. Population
- Simmons Survey Data Presented for 12 Credit Card Categories
- Experian Simmons Surveys Cardholders Attitude on Finances
- Index System
- About the Packaged Online Consumer Survey
- Online Consumers Higher Users of Co-branded and Affinity Cards
- Figure 4-1: Generational Patterns for Ownership of
Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009 (by
percentage and index)
- A/S Credit Cardholders: First Wave Boomers Go for Travel Cards
- Table 4-1: Demographic Characteristics Favoring Ownership of
Affiliation/Sponsorship Cards, by Type, 2008 (index)
- A/S Cardholders Tend to be Affluent
- Table 4-2: Household Income Levels Favoring Ownership of
Affiliation/Sponsorship Cards, 2008 (index)
- Table 4-3: Household Income Levels Favoring Ownership and Use of
Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009
(percent)
- MasterCard Has Highest Percentage of Truly Affluent
- Table 4-4: Key Household Income Levels for Affiliation/Sponsorship Cards
by Brand, 2008 (percent and index)
- A/S Cardholders Are Well Educated, Managers, Techies, Professionals or
Self-Employed
- Table 4-5: Education Characteristics Favoring Ownership of
Affiliation/Sponsorship Cards, 2008 (index)
- Table 4-6: Education Characteristics Favoring Ownership and Use of
Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009
(percent)
- Table 4-7: Employment Characteristics Favoring Ownership of
Affiliation/Sponsorship Cards Overall and by Type, 2008 (index)
- Northeastern and Pacific Homeowners Favor A/S Cards; the Southwest and
Southeast Are Areas of Opportunity
- Table 4-8: Regional and Homeownership Characteristics Favoring Ownership
of Affiliation/Sponsorship Cards Overall and by Type, 2008/2009 (index)
- Non-Hispanic Whites and Asians Favor A/S Cards; Blacks and Hispanics Are
Underrepresented
- Table 4-9: Racial/Ethnic Characteristics Favoring Ownership of
Affiliation/Sponsorship Cards Overall and by Type, 2008 (index)
- A/S Card Owners More Financially Secure and Financially Savvy than the
Average Consumer
- Table 4-10: Financial Attitudes of Affiliation/Sponsorship Cardholders,
2008 (index)
- Travel versus Automobile versus Association Card Owners
- Travel Card Users: Asian, Educated, White-Collar Professionals
- Table 4-11: Demographic Characteristics Favoring Ownership of
Airline/Hotel Cards, 2008 (index)
- Reach Them Through the Financial Press
- Table 4-12: Financial Attitudes of Affiliation/Sponsorship Cardholders
Overall vs. Airline/Hotel Cardholders, 2008 (index)
- Automobile Card Users: Older, Less Affluent, More Likely to Have Children
- Table 4-13: Demographic Characteristics Favoring Ownership of Automotive
Cards, 2008 (index)
- Table 4-14: Financial Attitudes of Affiliation/Sponsorship Cardholders
Overall vs. Automotive Cardholders, 2008 (index)
- Association/Organization Card Users: Well Educated, Affluent Techies and
Professionals
- Table 4-15: Demographic Characteristics Favoring Ownership of
Association/Organization Cards, 2008 (index)
- Table 4-16: Financial Attitudes of Affiliation/Sponsorship Cardholders
Overall vs. Association/Organization Cardholders, 2008 (index)
- Factors and Attitudes Differentiating Amex, Discover, MasterCard and Visa
Cardholders
- A/S American Express Cardholders
- Factors Differentiating A/S American Express Cardholders
- Table 4-17: Demographic Characteristics Favoring Ownership of American
Express Cards Overall vs. Affiliation/Sponsorship American Express Cards,
2008 (index)
- Don' t Leave Home Without It
- Table 4-18: Financial Attitudes of American Express Cardholders Overall
vs. Affiliation/Sponsorship American Express Cardholders, 2008 (index and
percent)
- A/S Discover Cardholders
- Table 4-19: Financial Attitudes of Discover Cardholders Overall vs.
Affiliation/Sponsorship Discover Cardholders, 2008 (index and percent)
- A/S MasterCard Owners
- Table 4-20: Demographic Characteristics Favoring Ownership of
MasterCards Overall vs. Affiliation/Sponsorship MasterCards, 2008 (index)
- Table 4-21: Financial Attitudes of MasterCard Holders Overall vs.
Affiliation/Sponsorship MasterCard Holders, 2008 (index and percent)
- A/S Visa Cardholders
- Table 4-22: Demographic Characteristics Favoring Ownership of Visa Cards
Overall vs. Affiliation/Sponsorship Visa Cards, 2008 (index)
- Table 4-23: Financial Attitudes of Visa Cardholders Overall vs. Visa
Affiliation/Sponsorship Cardholders, 2008 (index and percent)
Chapter 5: The Competitive Arena: Brand Networks
- Overview
- A Note on Metrics
- Credit Card Industry is Undergoing Major Changes
- Payment Networks and Their Brands
- Figure 5-1: Share of U.S. General Purpose Debit, Credit & Charge Card
Purchase Volume, 2008 (percentage)
- Figure 5-2: Share of U.S. General Purpose Credit & Charge Card Purchase
Volume, 2008 (percentage)
- Figure 5-3: Share of Global General Purpose Debit, Credit & Charge Card
Purchase Volume, 2008 (percentage)
- Figure 5-4: Share of Global General Purpose Credit & Charge Card
Purchase Volume, 2008 (percentage)
- Ownership and Use of Co-branded and Affinity Cards
- Figure 5-5: Ownership of Network Branded Co-branded and Affinity Cards,
2009
- Fewer Own Co-branded or Affinity Debit Cards
- At Least Half of Each Network' s Card Holders Keep a Co-branded or
Affinity Card Front of Wallet
- Figure 5-6: Brand by Brand, Half of Co-branded and Affinity Cards Make
It to the Front of the Wallet, 2009
- Ownership and Usage of Co-branded and Affiliation Cards Brands
- Table 5-1: Consumer Ownership and Use of A/S Credit Cards by Payment
Network Brand and Type, 2008
- American Express
- Overview
- Performance
- Table 5-2: American Express Financials, for 2006 through Q1 2009
- Table 5-3: American Express: Key Global Metrics for 2006 through Q1 2009
- “Spend-Centric” Co-branding
- Discover Financial Services
- Corporate Vision - Competitive Differentiator
- Overview
- History
- Going Forward: Global Reach
- Performance: Stop and Start Growth
- Table 5-4: Discover Financials for 2006 through Q2 2009
- Table 5-5: Discover: Key Metrics for 2006-2008
- Co-branding: “It' s All About the Relationship”
- Building Co-branding Relationships
- Structuring to Manage Co-branded and Other Cards
- Managing Partner Relationships
- Value Beyond the Partner-Specific Reward
- Creating Reward Programs that are Specific but Generic
- Giving Consumers an “Edge” on Financial Literacy
- Alignment of Opportunity
- MasterCard Worldwide
- Overview
- History
- MasterCard Starts 2009 with a Business Unit Realignment
- Performance and Key Metrics
- Table 5-6: MasterCard Financials, for 2006 through Q1 2009
- Table 5-7: MasterCard Key Global Metrics for 2006 through Q1 2009
- MasterCard' s Co-Branding Differentiators
- Relationship Rewards Construct
- Visa Inc.
- History
- Reorganization and Initial Public Offering
- Performance
- Table 5-8: Visa Financials, for 2006 through Q1 2009
- Going (More) Global
- Table 5-9: Visa Key Global Metrics 2008
- Figure 5-7: Visa' s Regional Markets, 2008 (Share and Growth)
- Visa' s Three-tiered Consumer Credit Platform
- Thousands of Visa Co-branding Programs
- Table 5-10: Visa' s Co-branded and Affinity Cards as of 2007
- Visa' s Differentiators: Seamless Solutions
- “What' s Really New and Different”
- Brand Globally but Co-brand Locally
- Building a More Holistic Relationship with the Retailer
- In the U.S. Getting More Out of What They Have
- In Europe
- Getting the Partners on Your Side
- For the next 2-5 years?
Chapter 6: The Competitive Arena: Banks and Non-Bank Issuers............
- Figure 6-1: Market Share of U.S. General Purpose Credit Card Issuers
Ranked by Purchase Volume, 2008
- Top Co-branded and Affinity Card Issuers
- Bank of America
- Overview
- Acquisition Spree
- Performance
- Table 6-1: Bank of America: Card Services Credit Card Performance
- “Incredibly Stiff Headwinds”
- Table 6-2: Global Card Services: Q2 2009 Results
- Table 6-3: Global Card Services: Key Statistics
- Beyond the Card: The Birth of Affinity Banking
- 39% of Q2-2009 Deposits from Affinity Relationships
- A Great Selling Machine
- Figure 6-2: BofA' s Multi-Channel Marketing, 2007
- Table 6-4: Affinity Program Success Stories
- Figure 6-3: BofA Leverages Its Channel Diversity to Balance Growth and
Profitability, 2008
- JPMorgan Chase
- Chase Card Services
- Performance
- Table 6-5: Card Services Performance
- Numerous Affinity Organizations and Co-brand Partners
- Table 6-6: Chase Obligations Under Affinity and Co-brand Programs
- Co-branding is Serious Business at Chase
- Co-brand Outperforms Chase' s Proprietary Programs
- Figure 6-4: Chase Brand versus Co-brand/Affinity Performance
- Concentrating on the Biggest Partnerships
- Table 6-7: A Chase Affinity Card Sampler
- Barclays PLC
- Performance
- Table 6-8: BarclayCard Performance, 2006-2008
- Table 6-9: Key Facts about Barclaycard, 2008
- Focus on Co-branding
- Success in the U.S.
- U.S.-U.K. Cross Fertilization
- GE Consumer (ne GE Money)
- Expands Co-branded Card Portfolio
- Performance: Shrinking Receivables - Rising Defaults
- Table 6-10: GE Capital Consumer (formerly GE Money) Financials, for
2006 through Q1 2009
- Table 6-11: GE Capital Consumer Delinquencies Q2 2008 versus Q1 & Q2
2009
- From Pure Private Label to Co-branding Giant
- Table 6-12: Dual Card Launches and Assets, 2003-2006
- Table 6-13: Examples of GE' s Co-branded and Affinity Cards, 2009
- GE' s Global Co-branding Reach
- But GE Doesn' t Love its Credit Card Business
- Capital One
- Performance
- Table 6-14: U.S. and International Card Performance, 2006-2009
- As Other Issuers Pull Out of the Co-branding Arena, Capital One Sees
Opportunity
- Card Lab - Personalizing Plastic
- Capital One Creates DIY Affinity Programs for Non Profits
- How it works
- USP for Smaller Non-Profits
- Table 6-15: Capital One Co-branded Credit Cards
- Smaller Financial Services Companies Enter the Co-branded and Affinity
Card Space
- Western Alliance Bankcorp Looks to Co-branded and Affinity Cards to
Offset Real Estate Woes
- UMB: The First Do-it-Yourselfer
Chapter 7: Marketing Dynamics
- Decision Drivers and Information Sources
- Co-branded Card Candidates Resonate with Direct from Partners and
Sponsors
- Table 7-1: Sources of Information Especially Important to Choosing Last
Card for Co-branded or Affinity Card Owners versus Owners of Standard Cards
- Table 7-2: Sources of Information Especially Important to Choosing Last
Card for Consumers Who Use Co-branded or Affinity Card Most Frequently
versus Standard Cards
- Trust in Advertising: ' Round the World It' s Word of Mouth
- Figure 7-1: Forms of advertising ranked by changes in levels of trust
from April 2007 to April 2009
- With All Those Carefully Crafted Benefits, What Really Matters to
Co-branded and Affinity Card Users?
- Table 7-3: Features That Drive Acquisition of Co-branded and Affinity
Cards versus Standard Cards
- Rewards and Discounts More Important for Acquisition and Frequent Use to
Co-branded and Affinity Card Owners than to GPCC Owners
- Table 7-4: Features That Drive Acquisition and Use of Co-branded and
Affinity Cards versus Standard Cards for “Most Frequent” Users
- Table 7-5: Considerations in the Acquisition and Use of Co-branded
Retailer, Travel, Entertainment and Affinity Cards
- Hanging on to the Old School Tie
- Table 7-6: Students and Alumni Go for Organization and Affiliation Cards
- .....And Which Ones Don' t? Rewards Program Cost Cutters Want to Know
- Where Do Marketers Spend Their Money
- Direct Mail Offers Plunging
- Figure 7-2: Direct Mail Credit Card Offers, Synovate versus Mintel,
2005-2007
- Shift to Fee-based and Co-branded Cards
- Spending on Measured Media Fell Off the Cliff in Q4-2008 - It' s Still
Falling
- Figure 7-3: Measured Media Spending, 2007, 2008 and Q1 2009
- Word of Mouth[watering] Marketing Spending Bucks the Trend
- Print Media: Co-branded Card Holders Read the Financial Pages
- Table 7-7: Card Holder Attitudes: I Read the Financial Pages of My
Newspaper
- Table 7-8: “I Find Ads for Financial Services Interesting”
- Branches are Bastion of Card Promotion - the Buzz Word is CRM
- Figure 7-4: Bank of America' s Card Sales Mix By Channel, 2004-2007
- Communicating with the Consumer via the Internet
- Online Advertising
- Email Marketing: Boosting Co-branded Card Use
- Emerging Email Marketing Paradigm
- Viral Email Marketing
- Segments, Segments, Segments
- Small Business - Lots of Opportunity for Co-branders
- Gen Y: Internet Lovers Who Embrace Co-branded and Affinity Cards
- Boomers - Still Influential, But Saving More and Spending Less
- Ethnic Marketing
- Table 7-9: U.S. Population Projections: Share by Ethnic Group
- Table 7-10: Penetration of Co-branded and Affinity Cards by Ethnic Group
- Asians Embrace Co-branding
- African Americans: Worldview Considerations
- Hispanics Underserved - Try Mobile Outreach
- Multi-racial Opportunities Loom
- Figure 7-5: Growing Multi-Racial Population in the U.S
Chapter 8: Going Forward
- Legal Challenges in the U.S. to the Credit Card Reform Act of 2009
- Table 8-1: Key Provision of the Credit Card Accountability,
Responsibility, and Disclosure (CARD) Act of 2009
- Impact on Consumers and Issuers
- Impact on Co-branding Partners
- Chill Wind Blows on Overdraft Fees
- Are Interchange Fees Next? Co-branding Partners Square Off Against Banks
and Brand Networks
- Across the Pond
- Emerging Payment Products: A Structural Break
- Contactless Cards
- Smart Cards
- Mobile Payments (mPayments): Are the Golden Days of Plastic Cards Over?
- Co-branding a Mobile Phone?
- Social Networking
- Top Social Networking Sites
- Table 8-2: Top Social Networking Sites
- Gen Y: the Sweet Spot for Social Network Co-branded Card Marketing
- Figure 8-1: Front-of-Wallet Use of Co-branded and Affinity Cards by Age
Cohort
- But Do Social Networkers Go On to Visit Financial Sites?
- Table 8-3: Method of Gathering Information to Identify Choices for a
Potential Purchase
- Tweetterers Don' t Fly to Financial Services Sites Either
- Women Turn to Blogs for Info, Advice, Recommendations
- Co-branding and Social Networking
- Whither Co-branding
- The Need for Alternate Channels
- Learning from Past Mistakes
- U.S. Co-branding Programs: All Grown Up or Still Growing?
- Segments: Growing and Emerging
- Helping the “Bruised Consumer”
- Rewards Programs: Issuers Cut Back as Beleaguered Consumers Increase
Reliance
- Table 8-4: U.K. Credit Card rewards in 2005, 2008 and 2009
- Are Experiential Rewards Relevant in a Downturn?
- The Tension Between Co-branded and Proprietary Bank Rewards Programs
- The Co-branding Advantage That Issuers Crave
- To Live Long and Prosper, Co-brand Partners Need to Be Actively Engaged
in Their Programs
- Sizing the Future of Co-branding in the U.S.
- Figure 8-2: Rewards Cards vs. Standard Cards as a Percentage of Total
Credit Cards, 2007-2012
- Table 8-5: World Bank Estimates of U.S. GDP and Private Consumption
2007-2011
- Figure 8-3: Co-branded & Affinity Card Forecast, Cards Outstanding
(Total/Per Cardholder), 2007-2012
- Figure 8-4: Co-branded & Affinity Card Forecast, Transaction Volume and
Value, 2007-2012
- Assessing the Game Changers
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