Boston, February 17, 2012 – A new report from Aite Group identifies specific marketing opportunities for growth in the U.S. small-business card market and discusses an appropriate product strategy for driving card growth. Based on an August 2011 Aite Group survey of 291 small businesses, the report assesses current user perceptions, needs, and use cases surrounding small-business cards. It recommends that players enhance customer-acquisition results through a targeted, segmented marketing approach.
After several years of smooth sailing, the ship carrying U.S. small-business credit-card growth ran aground and rolled over in 2008. Transaction volume, which had grown prior to 2008, proceeded to plummet in 2009. It still hasn’t fully recovered—effectively growing a small-business card portfolio has been difficult in the recent climate. With the underpinnings of economic recovery in place and economic indicators improving, however, the time to re-initiate U.S. small-business-card growth has arrived. Because small businesses have turned away from small-business credit cards, card issuers have their work cut out for them.
“In these times of economic difficulty, small businesses seek simplicity and convenience from their card products, have limited need or tolerance for advanced feature sets, and are generally averse to borrowing from their card providers,” says Rick Oglesby, senior analyst with Aite Group and co-author of this report. “Through highly targeted marketing campaigns that aim the right products and features at specific prospects, small-business card issuers can find greater return on their marketing investments.”
This 32-page Impact Report contains 20 figures and three tables. Clients of Aite Group’s Wholesale Banking service can download the report by clicking on the icon to the right.