When it comes to their customers’ loyalty, banks that issue credit cards may have something to worry about. According to a recent survey conducted by J.D. Power and Associates there are not many people who are adamant about remaining with their primary card.
Only 22% say there is no way they would change cards. The number has decreased from the 30% in 2008. However, the survey did show an improved customer satisfaction with the credit card companies.
It appears that the increased communication brought on by the new Credit CARD Act has helped when it comes to the customer understanding their card and what goes with it. According to the survey there was a larger percentage of satisfaction among cardholders who carry a balance as opposed to those who pay off their cards monthly. This is most likely due to a better understanding of fees, terms and penalties.
While the satisfaction overall seemed to increase over the year the loyalty that customers feel to a specific card continued to decline. The results show that perhaps people might be lured in by better offers elsewhere. For those with good credit, the offers are plentiful according to Brad Strothkamp, financial services analyst for Forrester Research. Because of the fact that banks are stricter on lending, those with good credit have a pool of banks to choose from who are competing for a smaller amount of business.
These companies are offering substantial introductory offers that appeal to consumers with low APR or even zero. There are often rewards available that entice the consumers. Since the loyalty to the current issuer is down, the consumer may consider switching. However, consumers can often benefit from simply talking to their current bank. Retaining a valuable customer with good credit is vital to a bank and they may be willing to change terms or APR for a customer to keep their business.
The new improvements in the economy make the consumer more aware of how easy it is to change things up a bit. They are feeling less desperation to stay with someone because they know if they have good credit they can qualify for better rates. Introductory offers are enticing, but a cardholder should ignore them. The introductory offers never last and the terms must be what a consumer can live with for a while.
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