Customer Appreciation Program
Case Study: Customer Appreciation Program
The explosive growth of co-branded credit cards with significant enhancements, plus the impact of no-fee and low-rate offers amid a saturated market for new accounts were taking a toll on cardholder loyalty. The client needed to take proactive efforts to add value to its credit card customer base and re-engage their loyalty.
A customer appreciation program was designed to focus on account acquisition, activation and retention. We created a program buzz by adding big award opportunities such as airline tickets for top accounts, and achievable award levels for average and less active accounts. A tiered approach to travel and merchandise awards effectively encouraged cardholders to spend more to earn higher award values.
Program participation was increased by more than 50%. In addition, purchase volume increased by 17% over the previous year, while voluntary attrition for the control group decreased from 12.9% to 8.3% the first year. The program continued to perform well with similar results achieved in subsequent years.