Today, credit union members and consumers have more ways than ever to pay for goods and services, including Buy Now Pay Later, automated clearing houses, mobile wallets, and peer-to-peer payments. At the same time, payment methods are getting smarter.
Even so, credit cards and debit cards remain supreme. In fact, Americans are 40% likely to use a credit card when making a purchase. While it's important for your credit union to leverage digital transformation to continually evolve and offer innovative payment methods, positioning card strategies behind any other payment method would be at the peril of your credit union. Let's take a closer look at a few simple and enticing ways credit unions can attract and acquire more card users.
Know What Matters to Your Members
When it comes to attracting card users, there are no one-size-fits-all solutions — there are about four or five. According to "The Convenience Catalyst: How Customer Experience Features Drive Credit Card Usage" by PYMNTS, roughly 89 million adult consumers (64% of active users) search for at least four different features when determining which credit cards they should sign up for. Here are some of the most popular ranked in order of relevance:
- Data security and safety measures taken
- Interest rates or fees
- Rewards programs
- Customer service
- Availability of mobile app
- Tools for improving credit scores
The importance of these card features can range based on the financial wellness of the individual. Yet, data security, interest rates, and rewards programs are among the highest for all test groups.
It's Not What You Offer, But How You Talk About It
Few days go by without a new report of identity theft and/or fraud. It comes as no surprise that 79% of active card users choose to use credit cards as their preferred payment method based on data security. However, you shouldn't just offer advanced data security measures, but you must educate members on the value. For example, if your credit card is tap-to-pay enabled, you can include simple infographics that highlight how it works and why it's safer. This can help build value in the minds of your members while putting their minds at ease.
Make Credit Card Use a More Convenient & Rewarding Experience
According to the PYMNTS research, 27% of active credit card users say convenience is the most important reason why they use credit cards as their go-to payment solution. In addition, 25% of consumers cite credit card rewards as an important factor. When a robust credit card rewards system is offered, it can help encourage new applicants while helping existing cardholders use the card as their primary method. Why? It's because everyone loves perks and freebies. However, not all credit card rewards or rewards programs are created equally. Here are five simple tips for creating a rewarding credit card rewards program:
- Tell members about the program
- Demonstrate how they can maximize the benefits
- Specifically, target ideal members
- Customize your rewards program based on your local memberships
- Analyze, learn, and revamp the program based on the way your members use it
Modernize and Amplify Your Credit Card Offering
In the end, your members expect convenience as a standard offering on a credit card. As such, it's imperative your credit union consistently demonstrates value beyond an easy and frictionless payment experience. These measures can include advanced safety and data security measures, competitive fees and rates, and a robust rewards program. And when you add these advanced credit card features to the best-in-class member service you're already providing, you will create a differentiated offering that few financial institutions can match. Click below to learn more about modernizing and amplifying your credit card offering.
