Getting the Most Return on Your Credit Card Marketing Investment
posted by Ann Marie Day, Director of Marketing on Thursday, November 9, 2017
As credit card competition continues to heat up, it’s more important than ever for issuers to invest in marketing the benefits of their credit card offerings to consumers. As recently reported by PaymentsSource:
Many [financial institutions] have attempted to deepen their footprint in one of the most profitable financial products (credit cards) leading to increased competition and an overcrowded co-brand market. Established U.S. issuers have returned to the space or ramped up business development, while newer players such as Banco Popular and Commerce Bank have joined the pursuit for co-brand business. [Financial institutions] have also refreshed their proprietary credit cards, delivering rich value propositions to fuel customer loyalty.
What strategies will provide credit unions the most return on marketing investment (ROMI)? Here are some things to consider:
Focus on more than rewards alone.
Many of the world’s largest issuers are going toe-to-toe on rewards, pushing program margins to the edge of profitability. Faced with this type of competition, it’s going to be increasingly difficult for credit unions to win on rewards alone. While the value of offering a competitive rewards program can’t be understated, it’s critical to bolster the credit card program’s appeal by also marketing its value-add features. This can include positive cardholder experiences, innovative digital payment options and other unique benefits.
ROMI: Compete with the world’s largest issuers even when you can’t beat their rewards offerings.
Leverage the power of big data and digitization to deliver real-time, tailored offers based on a consumer’s geographic location, spending habits and other demographic and behavioral information. “… we’ll see brands become even more dramatically attuned to the needs and priorities of the end consumer and increasingly shape their product offerings around rising lifestyle trends,” said Stacy DeBroff, founder and CEO of Influence Central in an article on 2017 marketing trends.
ROMI: Present relevant offers to consumers where and when they’re most likely to take action.
Developing and sharing expert content on your website, social media channels and other marketing platforms can help you build trust with consumers, attract new members and deepen loyalty with current members.
ROMI: Minimal financial investment can go a long way in winning member love and loyalty.
Make smart investments in video marketing.
Consumption of video content continues to be a major way consumers learn about brands, products and services. “Before getting carried away or overwhelmed by the abilities of these rising technologies, think strategically to make smart investments in video that will help your bottom line,” said Raghav Mathur, VP of product, strategy and marketing with G/O Digital Marketing. "This includes creating video content that supports the buyer's journey through every phase, from discovery to conversion and after-purchase. Providing customers with useful content well after their purchase is a tactful method to build customer loyalty and brand ambassadors.”
ROMI: Deliver your brand message in ways your members and potential members want to consume it.
Although not all effective marketing strategies need to be costly, keep in mind this principle: When it comes to marketing your credit card offering, you get out of it what you put in.
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