The cardholder life cycle has 4 stages. As one of the most important phases, Acquisition, is the first and a solid building point for a portfolio foundation. There are many factors that can help drive acquisition; develop clear goals, create partnerships, encourage new card application, promote benefits, implement incentives and review marketing process.
The next step is self explanatory, activation. You want to encourage cardholders to activate their cards once they have them. A few key factors to this step are to promote welcome materials and special offers, utilize custom card carriers, strategize with staff, develop a communication plan and leverage PIN mailers.
The third step in this 4 step process is the usage phase. How can you help drive usage? Communicate with cardholders, educate staff, a real-time cardholder website, daily point totals, comprehensive reporting and commitment to training.
The last phase is keeping and maintaining a strong customer base or retention. Statistics show that 2/3 of credit card holders would switch their primary card for better features. So how do you retain profitable customers? Understand their needs and behaviors, develop targeted campaigns, reward cardholders and maintain a competitive marketplace. The average credit card consumer has on average 4 cards, will you be one of those?