Two ways to increase credit card accounts and earnings are available for financial institutions: buy more or increase expenses among the existing cardholders. Both of them generated a higher return on investment by investing in existing cardholders.
Marketing a premium credit card is not an easy task in the UAE. The challenge is to identify which cardholders are currently targeted and which behavior changes are necessary for the creation of added value. The UAE is heaven for expats, and it is a challenge to convince ex-pats to get a credit card.
Credit card issuers should use the rich transaction and credit office information they have on cardholders to inform targeting and messaging strategies in order to identify options.
Of course, there are several ways to do this – innovative, tried, and true – and a lot depends on the philosophy, structure, finance, and so on of your company.
There are, however, a couple of tactics you can use to market your credit cards.
Focus On Your Customers Requirements
By focusing each credit card service on separate consumer needs, you are able to provide consumers with more effective value proposals and a predictable customer base, facilitating card profitability prediction and adapting marketing approaches based on early returns.
Obviously, this is difficult if the same card addresses different requirements. For instance, if your card offers both profit and low introductory rates, you will end up with customers who are spending a lot and always paying their bills completely, those who are expending and paying only minimum, and those who are transferring the balance without a guarantee that their cards will be kept after the introductory rate has expired.
Engage Early and Frequently With New Cardholders
It is critical to establish a strong cardholder relationship the first 45 days after a new credit card account has been opened. An onboard “early-month” program that reinforces the credit card’s value proposition and promotes the use helps to build the types of spend habits needed to top the pocket.
E-mail is an affordable channel to reach new cardholders easily.
Prioritizing Existing Cardholders
Reactivating cardholders who have not used their credit card for more than 60 days is very challenging. A proactive cardholders retention program will help prevent cards. Cardholders at risk of being inactive should be identified and contacted by the program. A predictive model based on data patterns of the inactive cardholders is the most advanced approach.
Offer Something Concrete
Where all types of banks are offering a premium credit card, it is hard for a marketer to market credit cards without offering something great. Many banks like Mashreq Bank UAE offer premium services, a fitness card, discounts, and privileges. Plan something attractive to lure your customers.
For two simple reasons, all credit-card companies should offer secure credit cards:
- they provide profitable and risk-free access to a significant consumer market and
- secure card clients proving their creditworthiness will become one of your most efficient marketing channels.
Provide Every Customer With Something
When a client comes to a bank for a credit card, they see the fruits of a great deal of time and money that they spend on marketing. At this juncture, you can make the consumer irresponsible by turning down the card they apply and providing no profitable, achievable alternative.
At least, a secure card will fit and you will dramatically increase the efficiency of marketing dollars by exhausting all opportunities to turn potential customers into customers.
With simple plans and focus strategies, you can easily reach your target audience. If you have any suggestions or effective ways to market credit cards share with us in the comment section.