Applying the best and effective strategy in credit card marketing is not that simple. The best marketers are usually engaged with some institute policies and activities used to market dollars.
There are numerous ways that give way to credit card marketing. Some of them are usually considered as innovative, effective, and true.
Most of it depends on the corporate philosophy, financials, and structures of the company. However, there are several strategies that can be used in marketing credit card.
1. Each product should focus on the every consumer’s needs. Each credit-card offer should focus on the distinct need of every consumer.
Both of the parties will be able to gain the ability to present effective and valuable propositions to the consumer and the customer base will always be predictable. Doing it easier to make a forecast of card profitability is better just like adjusting any forms of marketing strategy based on the early returns.
Obviously, this is somehow difficult to achieve if there is the same card trying to address another need. Offering three different cards is beneficial to your business. If you are able to gain 3 high-predictable groups of customers, definitely, that would allow you to market effectively, manage risks and surely, you will make more money.
2. Combination of credit card marketing and underwriting. It often happens that underwriting and marketing are brought together in a credit card company.
They consider that if anything works using the two, the entities are surely effective. Applicants that are not fit under the underwriting criteria are used in developing offers and conservatism underwriting could be easily avoided. Integrating the two teams is a way to break down some vicious cycles.
3. Offering secure cards is also one of important things to consider in credit card marketing. All credit card companies are required to offer secured-credit cards for some reasons. One of the reasons is to provide a profitable access to any of the significant consumers without adding or taking any risks.
Another one is the soliciting-secured card for customers which prove that their credit worth will be one of the most effective and efficient marketing channels. This is considered as a can’t-lost strategy which is very essential today.
Today, the Card Act mitigated both the popularity of the unsecured-credit card and the profitability for those people with a bad credit.
4. Another good thing to consider in credit card marketing is appealing to the former users of debit cards. For some reasons, people use debit cards instead of credit cards.
However, swipe fee and overdraft regulations have reduced the use of debit cards. This is primarily driven by the near-extinction of DC rewards.
It shows significant opportunity that exists for those credit card companies that will add new accounts in the company rewards portfolios.
Combinations of customizable limits, auto-pay plans and great knowledge about debit cards and credit cards are the key to address consumer concerns. Marketers should guarantee that the rewards will influence the people in taking their decision.