Tag Archive for: co-brand

(New York, NY) Co-brand credit cards connect cardholder spending to exclusive benefits and rewards at their favorite brands. The fierce competition to capture everyday spend and increase cardholder acquisitions continues to push brands, issuers, and networks to evaluate which value propositions resonate best. Auriemma Group’s latest issue of Cardbeat US found that rewards—points, miles, or cash back for applying and for ongoing spend—are the top driver of card acquisition and usage.

The challenge for brands, issuers, and networks is crafting a compelling value proposition that optimizes their objectives and delivers a product that resonates with customer enough to stand out in a crowded marketplace. The card program’s benefits and rewards must be differentiated enough to speak to a brand’s unique customer base, while valuable enough to rival the competition, which includes proprietary bank cards in addition to other co-brand cards.

Auriemma Group’s latest issue of Cardbeat US determines the drivers of value proposition success by asking existing co-brand cardholders to compare potential co-brand rewards and benefits. Surveying opinions on the relative value of rewards, card design, tolerance for annual fees, and more, the issue confirms that card rewards are the primary driver of co-brand card success.

46% of co-brand credit cardholders indicated that their desire to earn ongoing points, miles, or cashback rewards for spend would motivate them to apply for a co-brand credit card, more than any other single factor across all types of co-brand cards (e.g., airline, hotel, retail). Attractive sign-up offers also play a role–29% of cardholders say they would motivate them to apply for a co-brand, the second-most cited factor.

And when considering potential motivators for increasing co-brand spend outside the partner brand, roughly eight-in-ten co-brand cardholders say their co-brand delivering double points for online (82%), grocery (81%), and/or restaurant purchases (77%) increases their likelihood to use it.

“Card acquisitions are powered by attractive sign-up offers and strong ongoing rewards,” says Gary Rezak, Managing Director at Auriemma Group. “Then the value of the rewards and benefits, as well as the cardholder’s ongoing relationship to the brand, continue to engage cardholders and unlock the programs’ full potential.”

In addition to rewards value, brand affinity is a significant driver of cardholder engagement, especially for retail co-brand cards. 34% of retail co-brand cardholders cite frequent purchases at the brand as their reason for applying. And hotel co-brand cardholders have their own unique motivations, with improving loyalty status as an especially powerful motivator of ongoing engagement for that category. While other co-brand card characteristics, such as the card’s design or APR, should be thoughtfully considered, far fewer cardholders say these factors have a major impact on their card usage.

“Many value proposition elements make an incremental difference in the success of a co-brand and cannot be ignored, but strong rewards value is a must,” says Rezak, “a co-brand without valuable sign-up and ongoing rewards risks never getting a prospective applicant’s consideration in the first place.”

To get full access to this special co-brand issue of Cardbeat, Auriemma’s syndicated research publication studying the debit and credit card industry, or to discuss a custom research study on cards and payments topics, contact Jaclyn Holmes, Director, Auriemma Research.

For assistance assessing, evaluating, finding partners, and negotiating your co-brand and private label partnership, contact Gary Rezak, Managing Director, Auriemma Group.

Survey Methodology

Cardbeat US

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in June 2023 among 1600 adult credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

About Auriemma Group

For more than 35 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognized experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships, and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise, and tools they need to navigate an increasingly complex environment and maximize their performance. Auriemma serves the consumer financial services ecosystem from our offices in New York City and London.

(New York, NY) Co-branded hotel credit cards earn consumers exclusive benefits and rewards tailored to brands they love. They function similarly to proprietary rewards cards, but there are several unique factors that inspire hotel card acquisition, usage, and loyalty. Auriemma Group’s latest issue of Cardbeat US delves into co-brand credit cards and loyalty programs, uncovering that experience-based perks and brand affinity are key to a hotel co-brand’s success.

60% of credit cardholders say experience-based benefits would make them more interested in applying for a hotel card. Room upgrades have the largest impact, followed by complimentary food and beverage, the occasional free hotel stay, early check in/check out options, and free Wi-Fi. In total, the desirability of these experience-based benefits outweighs that of spend-based rewards, which 49% of credit cardholders cite as driving factors for hotel card application.

“To cultivate guest loyalty, hotel card issuers must emphasize the unique experience their cards provide,” says Jonathan O’Connor, Senior Manager at Auriemma. “Issuers should not underestimate the value of a tangible perk, which is often more accessible to cardholders than calculating points. While rewards remain an important piece of the puzzle, experiential benefits are stronger drivers of pre-acquisition interest in hotel co-brands.”

Loyalty status also factors into hotel card acquisition and usage. Though ongoing rewards and attractive sign-up offers drive hotel co-brand applications, 31% of hotel co-brand credit cardholders say improving loyalty status also plays an important role. This is particularly pronounced for Marriott cardholders, 39% of whom say they applied to improve their loyalty status with Marriott.

Loyalty perks also have an incredible impact on off-brand spending. 83% of hotel co-brand cardholders say enhanced loyalty status upgrades motivate them to use their card for off-brand spend. Access to VIP experiences also motivates 51% of these cardholders.

“Envisioning an upgraded room, amenity, or enhanced service because of card spend is a significant motivator,” says O’Connor. “Knowing that greater card engagement can lead to an elevated hotel stay gives cardholders a north star to build towards.”

The distinguishing factor between hotel cards (and co-brand cards in general) and their proprietary rewards counterparts lies in the loyalty perks they offer. The ability to highlight experiences and a clear path to perks is what separates hotel cards from programs that have their cardholders doing the math.

“The key to unlocking a hotel card program’s full potential is the benefits that standard credit cards cannot provide,” says O’Connor. “Hotel co-brand issuers that look beyond the table stakes of a viable credit card program and emphasize experience-based perks and brand affinity will win over those that strictly focus on monetary rewards.”

Survey Methodology

Cardbeat US

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in June 2023 among 1600 adult credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

About Auriemma Group

For more than 35 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognized experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships, and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximize their performance. Auriemma serves the consumer financial services ecosystem from our offices in New York City and London. For more information, call Jonathan O’Connor at (+1) 1-646-437-6116.

Cardless, an emerging co-brand credit card provider based in San Francisco, recently announced it secured a three-year, $75 million credit facility from i80 Group. The company stated that the credit facility will enable Cardless “to fund customer receivables, growth, and continue its work with large, globally recognized brands.”

Additionally, Cardless announced that Brian Kelly, founder of The Points Guy, which tracks and ranks credit card value propositions and redemption options, is an investor and advisor.

The entry of Cardless, along with Imprint, Deserve, and Tandym, in recent years is beginning to altered the co-brand and private label credit card competitive landscape, which has been historically dominated by a set of incumbent banks, many of them household names.

Research suggests that incumbents do have significant advantage, as cardholders place a premium on their preferred banks issuing their co-brand cards. Recent Auriemma data indicates that 72% of cardholders say it is somewhat or very important for their preferred issuer to issue their ideal co-brand card.

Nonetheless, co-brand and private label credit cards are in high demand, with 36% of cardholders saying they are likely to apply for one in the next 12 months. The number rises to 56% among Millennials. If new co-brand and private label providers can offer cards for previously unserved brands and deliver valuable product innovations, they should find plenty of room to grow.

(New York, NY):  Auriemma Consulting Group will have two speaking roles at Airline Information’s Mega Event 2018, scheduled for October 31st through November 2nd in Long Beach, CA. Both of Auriemma’s speaking roles will discuss how issuers and brand partners can evolve and improve their co-brand programs in the current environment.

David Edwards, a director in Auriemma’s International practice, will speak on the panel “Driving Additional Revenue Streams from Co-Brands: Lessons from Non-US Markets,” scheduled for November 1st at 11:10 a.m.

The panel will focus on how co-brand programs have or will be impacted by new payment regulation, as well as key learnings from post-interchange markets. Edwards, in addition to the panelists from KLM Royal Dutch Airlines and Kobie Marketing, will share how co-brands can thrive amid regulation by adopting collaborative approaches, embracing change and designing innovative solutions that are both desirable and relevant to customers.

“All markets around the world have or will be impacted by new payment regulation,” Edwards said. “But consumer desire for rewards and benefits is greater than ever – they will choose co-branded products over and above new alternatives.”

Jaclyn Holmes, director of Auriemma’s Payments Insights practice, will share proprietary consumer research in the presentation “Which Rewards Set Co-Brand Programs Apart – A Consumer Perspective,” scheduled for November 1st at 2:25 p.m.

The presentation will detail how consumers’ usage and perceived value of card benefits vary drastically, depending on the benefit offered.  Issuers and brand partners alike are designing increasingly attractive credit card programs to capture the attention of young, affluent cardholders. Session attendees will learn which benefits best capture the attention of prospective cardholders, as well as which benefits drive increased card usage and retention.

“Rewards card value propositions have grown increasingly complex, with issuers offering robust benefits ranging from comprehensive protections and warranties to elite experiences,” Holmes said. “In this evolving landscape, it’s critical to understand your customers and their motivations for card selection.”

Attendees can schedule a one-on-one meeting with Auriemma’s team to discuss how the firm’s research and advisory work can help navigate the current environment most effectively.

(London):  Auriemma Group will have two speaking roles at Airline Information’s Co-Brand EMEA Conference, scheduled for 21 February in London.

David Edwards, Director in Auriemma’s Partnerships group, will chair the conference with opening remarks focused on optimising co-brand programmes and identifying opportunities as the industry absorbs new EU regulation under Interchange Fee Regulation (IFR), Payment Services Directive (PSD2) and General Data Protection Regulation (GDPR).

“With the launch of new co-brands since IFR was implemented, the co-brand market is demonstrating that there is still an ability to successfully grow and be profitable,” Edwards said. “However, to be successful in this changing market, there is huge importance in understanding where opportunities for growth have been created, how to adapt to more flexible commercial arrangements and how to talk directly to new and existing cardholders to derive additional value.”

Opportunities for growth include starting new programmes in the current environment, optimising co-brands with card-linked rewards and better understanding the needs and motivations of the consumers.

Jaclyn Holmes, Director of Auriemma’s Payments Insights group, will lead a discussion on consumers’ expectations from payments players, including features that have implications on spend, engagement and acquisition. Using proprietary data from Auriemma’s UK Cardbeat study, Holmes’ presentation will detail UK consumer attitudes and expectations on retailer offers and benefits, card personalisation and card selection criteria.

“With the right messaging, card issuers and co-brand partners can develop successful offers, encourage stronger engagement and build consumer trust,” Holmes said. “But to do so, it’s critical to recognise cardholders’ lack familiarity and understanding of regulatory language. There’s opportunity to build consumer education, and the brands and issuers who get the communications right will be at an advantage.”

Attending retailers can schedule a one-on-one meeting with Auriemma’s team to discuss how the firm’s research and advisory work can help navigate the current environment most effectively.

About Auriemma Group

For more than 30 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognised experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships, and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximise their performance. Auriemma serves the consumer financial services ecosystem from our offices in London and New York City. For more information, call +44.(0).207.629.0075.

About Ai | Airline Information

Ai is an established leader and innovator in commercial aviation conferences. Since 2005, Ai has hosted thousands of airline and travel professionals at the company’s groundbreaking conferences, forums, workshops, webinars and networking events.

(New York, NY):  As consumers migrate from brick-and-mortar stores to online shopping, merchants have turned to omnichannel strategies and experiences to bolster loyalty and retention.

But consumers’ behavior has become increasingly fragmented: In the quest for deep discounts and convenience, allegiance to one particular merchant has taken a backseat.  In this environment, a key question facing merchants is what the future of shopper loyalty looks like, and how they can best position their offerings and experiences to capture it.

To answer it, merchants are increasingly turning to payments – an oft overlooked component of the shopping experience that can unlock store traffic, sales, and long-term brand loyalty.

“Increasingly, merchants are re-thinking the way co-brand and PLCC programs can deepen consumer loyalty,” said Gary Rezak, a director in Auriemma Consulting Group’s Global Partnerships practice. “These programs have the power to increase omnichannel productivity, boost in-store visits and drive new behaviors.”

The evidence that a card program can stimulate positive shopping behaviors is mounting, with 30% of co-brand and private label cardholders saying they spend more at the related and 73% reporting they feel more loyal to the related merchant, according to Auriemma’s February issue of Cardbeat®.

Here are other loyalty indicators well-executed programs can deliver to merchants:

  • More in-store visits. Even as store footprints shrink, garnering in-store visits is still king among retail performance metrics. Generally, cardholders have higher shopping frequency and larger average order sizes than non-cardholders. With more price competition than ever before, special sales events and mail-order coupons often do not achieve the same sales lift as they did historically. But card programs can provide a reason to return to the store – again and again. If a cardholder returns to the store just once early in its cardholder relationship, he or she is far more likely to return later: 30% of co-brand and private label cardholders say they’ve increased their spending with the retailers since getting the card, according to Auriemma’s Cardbeat research.

 

  • More special experiences. Perks and VIP experiences for cardholders, such as dressing room reservations, free alterations and special access to cardholder-only events are increasingly successful in generating in-store traffic and engagement. Look for an increasing focus on soft benefits, brand partnerships, personalized delivery, “surprise-and-delight” offers and special events embedded in value props going forward. And encouraging cardholders to “unlock” such perks could also be effective: When cardholders are given the opportunity to unlock richer rewards with increased spend, 25% say they spend enough to hit the reward threshold, according to Auriemma’s Cardbeat research.

 

  • More cross-channel sales. Consumers who shop in all three channels – store, online and mobile – are often the most profitable. Driving top-of-wallet behavior is crucial for online and mobile shopping, particularly without a store employee to remind the cardholder of the benefits. Knowing that your online or mobile shopper is an existing cardholder is a critical component of generating top-of-wallet spend. More retailers will begin requiring known customers to create log-ins for online check-out. While the sign-up process may be an initial speed-bump, its overall benefits, including prompting existing cardholders to use their card for savings or free shipping, is invaluable to drive spend without disrupting the check-out process.

 

  • More cross-over customers from non-tender loyalty programs. The value of loyalty programs is two-fold: data capture and targeted marketing. Increasingly, merchants are leveraging loyalty programs to screen and pre-approve potential credit-worthy applicants. However, there is potential for cannibalization between the two programs. (According to Auriemma’s Cardbeat research, 53% of cardholders enrolled in both a credit and non-tender program believe the rewards between both programs are the same.) Merchants can break this pattern by ensuring both programs have distinct value propositions with calibrated richness. In addition, enrollment in both programs can be highly attractive to customers, and increase in-store visits, if consumers can multiply rewards to accelerate their redemption opportunities in-store.

 

“Even in a challenging environment, there are numerous opportunities for merchants to break through the clutter, communicate compelling messages and engender more loyalty,” said Diana Middleton, Director of Auriemma’s Brand Partner Roundtable, an information-sharing group for senior retail payment executives. “As customers change the way they shop, merchants must ensure they have laid the groundwork to be the top-of-wallet tender for any transaction in any channel.”

About the Brand Partner Roundtable

Open exclusively to brands, including retailers and T&E partners, the Brand Partner Roundtable focuses on designing and executing card programs that benefit members’ core retail business. Discussions give participants the tools and information they need to improve their program’s value proposition and acquisition strategy, eliminate fraud, and fine-tune mobile and digital enhancements.

About Auriemma Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space. We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines. For more information about Industry Roundtables, contact Tom LaMagna at (212) 323-7000.

(New York, NY):  For the past several years, there has been an unprecedented level of activity in the U.S. co-brand marketplace, with many of the country’s largest programs coming to the end of their existing issuer and network contracts. That growth will continue, but in new pockets of the industry, according to Auriemma Group, a boutique management consultancy focused on the consumer payment industry.

Recently, many marquee retail and T&E programs, such as Amazon, American Airlines, Costco and Cabela’s, conducted competitive selection processes that received an extremely high level of interest from potential issuing partners. With few deals of that size expected to hit the market in 2017, Auriemma anticipates co-brand expansion will come from several less-explored areas.

“The U.S. co-brand market has been extremely active for the past few years and while a few major programs did shift partners, the overall landscape did not change that dramatically,” said Gary Rezak, Director of Partnerships for Auriemma. “Most of the leading issuing banks and payment networks still have the desire to grow, and they are actively seeking new partnerships.”

More online/mobile-only companies will start co-brand programs. As consumers continue to shift their spending away from traditional brick-and-mortar locations, the co-brand issuing community is starting to look online as well.  “Some of these less traditional retailers are generating large volumes of traffic and revenue,” says Rezak. “These newer companies need additional tools to generate loyalty and for many, a co-brand card is an ideal solution.” And while issuers might not have been that interested in these types of partnerships a few years ago, they certainly are today. Companies that cater to a difficult to reach audience, such as millennials will be particularly attractive.

Issuer interest in de novo programs will extend to more established companies. With credit card portfolios remaining lucrative for issuers, there will continue to be a strong push to increase assets. And while banks continue to actively acquire customers for their proprietary card products, competition for customers is intensifying, with costs for rewards and acquisitions escalating. Co-brand will become an increasingly attractive option. “Co-brand partnerships enable unique value propositions and exclusive marketing channels,” said Rezak. Auriemma anticipates new co-brand programs to come from a variety of industry sectors including financial, auto and telecommunications. In the past, issuers were solely focused on Retail and T&E, but as opportunities for new partnerships in these sectors have diminished, issuers have become more willing to broaden their partnerships targets.

Second-look issuing will continue to gain traction. Traditional co-brand issuing banks tend to cater to prime credit consumers, but most brands have customers from all ends of the credit spectrum. Second-look programs allow a brand to cater to more customers, without disrupting the prime issuer’s program.  “We’ve seen more brands negotiating for the right to offer second-look programs as part of the contract process,” Rezak said. “The sub-prime credit market has a lot of opportunity and we anticipate that many second-look programs will begin in 2017 and beyond.”  When implemented correctly, these types of programs have little downside.  Issuers focused on second-look programs have developed an expertise in managing the increased risk associated with this population, without disruption to the consumer, brand partner or prime issuer.

While 2017 may not be the year of the marquee deal, it holds plenty of promise for both issuers and brands in less-trafficked corners of the industry.

 About Auriemma Group

Auriemma is a boutique management consulting firm with focus on the Payments and Lending space. We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines.  For more information, please contact Gary Rezak at 212-323-7000.

(New York, NY):  As shifts in consumer preferences mete out consequences for retail stores, one segment is investing heavily in brick-and-mortar locations to generate new sales: co-brand programs.

Retailers that offer co-brand and private-label credit cards are ramping up direct marketing efforts through the physical point of sale and investing in technology, employee incentives, and other initiatives to modernize that channel and maximize its growth potential. According to a survey conducted by Auriemma, 57 percent of brand partners with physical, online, and mobile commerce footprints are forecasting in-store account acquisitions growth through end of year and planning to increase investments in the near term.

“Retailers are doubling down on store-centric strategies as a tool for increasing cardholder acquisitions,” said Diana Middleton, Director of Auriemma’s Brand Partner Roundtable, an information-sharing group for senior retail payment executives. “Brand partners are well aware that customers are changing the way they shop, and deploying tactical investments to boost what has historically been the best-performing channel.”

In fact, retail stores remain a leading outlet for card sales: physical locations generated 71 percent of account acquisitions in 2015, according to Auriemma’s Brand Partner Roundtable Benchmark Study, and tend to have higher applicant approval rates.

Planned investments reflect a bullish outlook on stores as part of larger cardholder acquisition strategies, despite slipping comparable sales and declining foot traffic. While retailers begin trimming their physical expansion plans and closing under-performing stores, and as consumers increasingly migrate to online and mobile environments, physical locations are expected to remain a key driver of account openings. Many brand partners still view store associates as the most effective means for communicating the value proposition associated with card products and delivering relevant information and offers to customers.

Still, retailers are adapting their techniques to reflect a growing digital audience and the reality of declining brick-and-mortar store visits. Increasingly, investments are designed to promote greater integration with omni-channel strategies for branded card programs.

“Brand partners are taking proactive steps to maximize the potential of this existing and very formidable channel,” Middleton said. “Program managers are identifying better and more personalized ways to serve customers, preserve face-to-face relationships, and bring the point of sale into the digital era.”

These methods include equipping stores with more sophisticated technology, identifying migration patterns between physical and digital customer touch points, and analyzing how shifting behavior affects customers’ lifecycle value. A key part of this strategy is identifying highly-active omni-channel shoppers in-store and delivering pre-approved offers at the point of sale.

New technologies, including tablets and other mobile devices as an acquisitions tool and more sophisticated customer relationship management (CRM) systems, could open an avenue for instant pre-approval, reduce application times, and eliminate friction.

A more fundamental long-term challenge will be sustaining leads in the absence of store footprint expansion, which has traditionally generated large sums of new customers and accounts. With fewer new store openings, brand partners will need to identify new potential cardholders within their physical footprint, as well as maximize the performance of digital channels.

“Today, brand partners have to be more strategic in how they target customers in their existing stores,” Middleton said. “Identifying that white space – customers that don’t have the card product – is critical.”

As efforts to optimize the in-store acquisitions channel continue, brand partners are also turning attention to online and mobile in particular. Program managers are investing equally in stores and more cost-efficient digital channels with a high perceived return on investment – especially as cost-per-acquisition in stores is expected to increase over time. However, challenges abound – from maintaining clarity of message and cutting through competing offers to improving opt-in rates and online targeting.

About the Brand Partner Roundtable

Open exclusively to retailers, the Brand Partner Roundtable focuses on designing and executing card programs that benefit members’ core retail business. Discussions give participants the tools and information they need to improve their program’s value proposition and acquisition strategy, eliminate fraud, and fine-tune mobile and digital enhancements.

About Auriemma Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space. We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines. For more information about Auriemma’s Industry Roundtables, please contact Tom LaMagna at 212-323-7000.

(New York, NY):  Few topics provoke as much consumer rage as the indignities of air travel.  Along with endless airport security lines and vanishing leg room, add-on fees are a major source of irritation for flyers.  Last year consumers spent a whopping $3.8 billion just on checked baggage fees, according to the Department of Transportation, and another $3 billion for the privilege of changing their flights.

Airline rewards cards, long favored by mileage hoarders, offer a way for consumers to fight back. By selecting the right credit card, savvy travelers can enjoy priority boarding, checked baggage, and make last-minute flight changes without racking up additional charges. And these premium benefits are broadening the appeal of airline rewards cards, according to recent research by Auriemma Group.

“People want to earn free trips: mileage is aspirational,” says Jaclyn Holmes, the Auriemma senior manager who directed the study. “But when it comes to the day-to-day flying experience, benefits like priority boarding or a free checked bag can make all the difference.”  Even consumers who would normally balk at paying an annual fee may change their minds when they consider avoided costs, she noted. “Over half of consumers who carry cards with premium benefits value these privileges more than the miles they earn for spending.”

Premium benefits are important to consumers, but they are important to airlines and issuers as well. Airline rewards cards with these benefits create an opportunity to better connect with the consumer, to provide them with a more positive experience, and to keep them brand loyal.

“Airlines and their card-issuing partners should continue to highlight the core benefits of mileage, how it is earned, and how it can be used,” says Holmes, “but it is equally important to focus on premium benefits offered, as they may be the tipping point in how consumers select their payment method and airline. Airline reward cardholders expect to be earning miles on their spending; to entice them you need to do more, you need to show them that your product will improve their travel experience.”

Survey Methodology

The study was conducted online within the United States by an independent field service provider on behalf of Auriemma Consulting Group in February 2016, among 800 U.S. credit card users (“cardholders”). The number of interviews completed on a monthly basis is sufficient to allow for statistical significance testing between sub-groups at the 95% confidence level ± 5%, unless otherwise noted.

About Auriemma Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space.  We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines.  For more information, call (212) 323-7000.

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