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A New Report From Aite Group |
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Boston, MA, December 8, 2008 – A new report from Aite Group, LLC provides
insight into the demographics and attitudes of consumers who choose credit cards based on rewards programs, and sheds light on the other
factors that drive consumers to select one card over another. It also outlines ways in which card issuers can best compete for the use
of their card above others in rewards card users' wallets.
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According to Visa, rewards cards now account for more than half of all credit cards, and,
even more importantly, roughly eight of every 10 dollars spent on a credit card. Consumers rank rewards as the number two reason
for applying for a specific card, behind no annual fees and ahead of low interest rates, according to Aite Group's January 2008
survey of 422 cardholders. As the number of cards in a consumer's wallet grows, so does the importance of rewards programs in
influencing the cardholder's choice of cards; consumers don't stop using their other cards after getting a new rewards card. Among
the ways to increase the use of a specific rewards card, issuers should consider expanding the range of goods and services that
earn premium rewards.
"It is clear that most rewards cardholders possess multiple rewards cards," says
Ron Shevlin, senior analyst with Aite
Group and author of this report. "As issuers look to one-up each other with ever-expanding rewards, Aite Group believes that
there's an opportunity for issuers to differentiate themselves by creating a rewards hub that enables cardholders to aggregate and
integrate programs."
This 14-page Impact Note contains 15 figures. Clients of Aite Group's Retail Banking service can
download the report by clicking on the icon to the
right. 
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Related Aite Group Research:
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To purchase this report or
for additional information,
please contact:
Aite Group Sales
Tel: +1.617.338.6050
sales@aitegroup.com |
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