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Transcription

New Credit Card Acquisition Study
Lightspeed Research
May 06, 2016
•
Results presented here are based on an online nationwide survey of 2,500 consumers. The study
was conducted by Lightspeed FSG and fielded between April 14 and April 28, 2016.
•
All consumers in the survey are at least 21 years old and must have opened at least one credit card
within the past six months . The survey specifically did not ask about private label store cards that
can be used only at one retailer.
Executive Summary





Capital One and Chase continue to lead the industry in new credit card acquisitions.
Cash back rewards continue to dominate -- 38% cards opened in the last six months have cash
back rewards, up from last year.
Most of those who opened a new card in the past six months weren't looking for one and did not
shop around or compare more than one card.
Lightspeed video interviews conducted with cardholders provide deeper insights into the events
that triggered the decision to apply for a new card -- a compelling offer letter, a suggestion by a
retail sales clerk, or an ad seen while shopping online.
Lightspeed’s nationwide survey among 2,500 consumers who opened a new credit card in the past six months
shows that:
 The card products with the most traction in today’s market include the Chase Amazon and Chase Freedom,
as well as the Capital One Quicksilver card product.
 New Chase Amazon cardholders most often cite the amount of rewards they earn as the primary reason
they got the card (21%), while Chase Freedom cardholders were drawn to the absence of an annual fee (17%)
and their affinity for the issuer (17%). Close to a quarter (21%) of new Capital One Quicksilver cardholders
wanted the card because it did not have an annual fee.
 Most new cardholders (69%) did not consider any other credit cards when they were looking for a new card.
 Direct mail campaigns continue to yield the most favorable results for credit card companies across the
board, but some issuers saw more acquisitions from online comparison sites while others leverage banking
branches.
To view video interviews with new cardholders,
go to www.lightspeedfsg.com/newcard
Copyright © 2016 Lightspeed Research. Proprietary and Confidential. All rights reserved.
2
SECTION 1:
NEW CARD ACQUISITIONS OVERVIEW
3
New Cards Opened: Market Leaders
 Chase and Capital One continue to lead the industry in new credit card acquisitions, though Capital One a slight decrease year-over-year.
 Three of the most popular card products among newly-opened cards are Chase Amazon, Capital One Quicksilver and the American Express
Blue Cash Everyday card.
Who is the issuer of the new credit card you opened in the past six months?
Base: 2,500 US consumers with new credit cards
Top products for each issuer:
2016
2015
16%
Chase
15%
Capital One
14%
Blue Cash EveryDay, Blue, Delta
10%
Bank of America
7%
Citi
9%
BankAmericard Cash Rewards, BankAmericard
9%
Double Cash, American Airlines AAdvantage
8%
Barclaycard
4%
Discover
4%
Other
Quicksilver, Platinum/Classic Platinum
19%
11%
American Express
Wells Fargo
Amazon, Freedom, Slate
Rewards, Apple Rewards
5%
It, It Miles
7%
Cash Back Card, Rewards Card
4%
3%
28%
27%
Source: Lightspeed Research Card Acquisition Survey, April 14-28, 2016. Top ”other” card issuers include Credit One Bank, Merrick Bank, PNC Bank,
Synchrony Bank, TD Bank, US Bank, USAA, and Walmart.
4
Distribution of New Cards Opened, by Rewards Type
 In a slight increase from 2015, over one-third of consumers who opened a new card in 2016 chose a cash-back card. This was
followed by 12% opening a retail rewards card and 8% opening a card with airline miles.
 14% of consumers opened a card that does not offer rewards (16% are unsure).
Type of rewards earned on new credit cards opened in the past six months
Base: 2,500 US consumers with new credit cards
2016
2015
Cash-back
31%
12%
Retail
8%
Airline miles
8%
6%
Points
Hotel
General travel rewards
14%
6%
4%
3%
3%
2%
Do not earn rewards on this card
Not sure
14%
18%
16%
18%
Source: Lightspeed Research Card Acquisition Survey, April 14-28, 2016.
5
38%
Rewards Earned on New Credit Cards
 In 2016, newly issued rewards credit cards are overwhelmingly likely to be cash-back rewards cards.
 While many newly-opened Capital One cards have cash back rewards, many others are non-rewards cards -- new Capital One customers
are more likely than other issuers’ cardholders to not earn rewards on a new credit card.
 Barclaycard is more likely than other issuers to issue points cards as new credit cards.
New credit card customers of…
What type of rewards, if any,
can you earn on your new
credit card?
Total
American
Express
Bank of
America
Barclaycard
Capital One
Chase
Citi
Discover
2,500
270
231
101
357
407
226
108
Cash-back
38%
50%
41%
33%
42%
37%
41%
69%
Retail
12%
9%
12%
11%
5%
13%
10%
7%
Generaltravel
3%
4%
11%
5%
4%
3%
1%
3%
Airline
8%
13%
11%
17%
6%
14%
15%
2%
Proprietary points
6%
5%
6%
14%
1%
9%
4%
5%
Hotel
4%
9%
5%
8%
2%
5%
6%
0%
Not sure
16%
6%
9%
11%
21%
13%
16%
8%
No rewards
14%
4%
5%
2%
18%
7%
7%
6%
Sample sizes
6
Top Reasons for Selection, by Top Products
 The Citi Double Cash card continues to have a strong rewards offering, as over half of new cardholders indicate the most important reason
they chose the card was because of the amount of rewards they earn.
 Roughly one-quarter of American Express Blue Cash cardholders were attracted to the introductory offer, while Capital One Platinum
cardholders have a strong issuer affinity and Quicksilver cardholders are most pleased with the absence of an annual fee.
New credit card owners of…
American
Express
Blue Cash
Everyday
BankAmericard
Cash Rewards
Capital One
Quicksilver
Capital One
Platinum
Chase
Amazon
Chase
Freedom
Citi Double
Cash
Discover
It
87
92
110
100
133
87
73
96
No annual fee
8%
13%
22%
16%
15%
17%
4%
14%
Had rewards I was looking for
16%
7%
13%
6%
12%
11%
25%
9%
I like the credit card issuer
16%
20%
9%
22%
9%
17%
4%
9%
Amount of rewards I earn
8%
10%
17%
3%
21%
11%
54%
9%
Good introductory offer
24%
10%
7%
3%
3%
14%
4%
14%
Good card to add to current
credit cards
4%
10%
2%
9%
6%
3%
0%
9%
Received a special offer in the
mail or electronically
8%
7%
2%
3%
9%
6%
4%
0%
I like the credit card brand
8%
0%
2%
3%
3%
3%
4%
9%
Needed more available credit
0%
7%
4%
9%
0%
0%
0%
6%
I have a banking relationship
with this issuer
0%
3%
2%
6%
0%
6%
0%
3%
What is the ONE most important
reason why you selected your
new card?
Sample sizes
Source: Lightspeed Research Card Acquisition Survey, April 14-28, 2016. Top ten #1 reasons for selection are shown.
7
New Card Introductory Offers
 The top introductory offer for new cards opened in the past six months was for a 0% intro APR (24%), followed by balance transfer offers
(15%) and bonus cash-back rewards (11%).
 9% of offers had a promotional APR higher than 0%.
 Fully 14% of new card owners say there were no introductory offers on their new cards.
What kind of introductory offer for new customers, if any, did your new credit card offer have? [Multiple responses accepted]
Base: 2,500 consumers with new credit cards
0% Introductory APR
Balance Transfer offer
Bonus cash-back for using card during first 1-6 months
Bonus cash-back for spending a certain amount in first 1-6 months
Bonus points for using card in first 1-6 months
Bonus points for spending a certain amount in first 1-6 months
Low Introductory APR (higher than 0% but a low rate)
Free credit report/credit information
Annual fee waived for first year
Bonus retail rewards
Bonus airline miles
Bonus general travel rewards
No late fees
Bonus hotel rewards
Bonus points for adding a new user
An item or service (e.g., one year of Amazon Prime, a free backpack)
Other (please specify)
Not sure
No introductory offer
24%
15%
11%
11%
10%
10%
9%
9%
8%
7%
5%
4%
4%
3%
3%
2%
6%
12%
14%
8
Top New Card Introductory Offers, by Rewards Type
 For new cardholders with cash-back rewards, proprietary points, or cards with no rewards, the top introductory offer was for 0% APR,
while new retail cardholders most frequently got bonus retail rewards and travel cardholders got bonus airline miles.
 While 27% of non-rewards cards had a 0% intro APR, 28% of new cardholders report receiving no introductory offer at all.
Top Five Introductory Offers by Rewards Type
Cash-back
Proprietary points
Retail
Travel
No rewards
951
150
288
380
341
#1
0% Introductory APR
(28%)
0% Introductory APR
(19%)
(24%)
Bonus airline miles
(30%)
0% Introductory APR
(27%)
#2
Bonus cash-back for using
card during first 6 months
(21%)
Bonus points for using card
during first 6 months
(16%)
0% Introductory APR
(19%)
Bonus points for spending
certain amount on card
(26%)
Balance transfer offer
(13%)
#3
Bonus cash-back for
spending certain amount on
card during first 6 months
(19%)
(15%)
(13%)
Annual fee waived for first
year
(23%)
Free credit report/
information
(9%)
#4
(19%)
(15%)
(13%)
Bonus points for using card
(22%)
Low Introductory APR
(higher than 0%)
(8%)
#5
Free credit report/
information
(12%)
(14%)
(12%)
Bonus general travel
rewards
(15%)
Annual fee waived for first
year
(4%)
No introductory
offer
14%
12%
12%
4%
28%
Sample Sizes
9
SECTION 2:
NEW CARD CONSIDERATION AND CHOICE
10
Establishing Awareness of New Cards
 Consistent with last year, close to one-quarter of new cardholders heard about their new card from an offer in the mail.
 Close to half (44%) of new cardholders first heard about their new cards online -- via email, an online ad, the issuer’s web site, credit card
comparison web sites and/or an online search tool.
How did you hear about your new credit card? [Multiple responses accepted]
23%
An offer in the mail from the credit card company
23%
An email offer from the credit card company
8%
11%
Online advertisement
10%
In a retail store (Target, Home Depot, Kohl's, etc.)
10%
11%
11%
10%
At my bank branch
10%
An online offer on that credit card's web site
8%
Credit card comparison web sites
8%
6%
7%
Online search using tools like Google, Bing, etc.
7%
7%
Recommended by a friend or family member
Television advertisement
5%
At the airport or on an airplane
Newspaper or magazine
11%
6%
3%
Recommended by a financial advisor
At an event (sporting event, concert, etc.)
10%
3%
2015
2%
1%
2014
2%
2%
2%
10%
14%
11
Awareness of New Cards, by Issuer
 All of these new credit cardholders are most likely to have heard about their cards through a mail offer from the credit card company.
 Bank of America customers are more likely than other customers to have heard of their new card at a bank branch, while Capital One’s
advertising on credit card comparison web sites has generated a good amount of new cardholders.
 Discover and Citi cardholders are more likely than other cardholders to have heard of their card from a TV ad.
How did you hear about your
new credit card?
American
Express
Bank of
America
Barclaycard
Capital One
Chase
Citi
Discover
270
231
101
357
407
226
108
An offer in the mail from the
credit card company
31%
24%
25%
32%
20%
27%
27%
An email offer from the credit
card company
22%
13%
9%
11%
12%
6%
15%
12%
15%
11%
13%
14%
8%
13%
In a retail store
6%
8%
4%
3%
3%
13%
2%
At my bank branch
3%
20%
1%
3%
8%
2%
0%
An online offer on that credit
card's web site
10%
10%
11%
8%
12%
10%
6%
7%
7%
5%
17%
10%
11%
9%
Online search
10%
13%
8%
11%
7%
7%
7%
Recommended by friend/family
4%
11%
4%
9%
9%
7%
14%
Television advertisement
7%
9%
0%
12%
4%
14%
15%
Sample sizes
12
Awareness of New Cards: Actively Looking for New Card
 New cardholders who were proactively looking for a new credit card were most likely to have heard of their new card via US Mail, an
online search engine, and/or credit card comparison web sites.
Which of the following best describes you? How did you hear about your new credit card? [Multiple responses accepted]
Base: 804 consumers who were looking for a new credit card
An offer in the mail from the credit card company
32%
19%
Online search using tools like Google, Bing, etc.
17%
14%
68%
13%
At my bank branch
13%
Recommended by a friend or family member
13%
I was not looking for a new credit card but when I
heard about this one I decided to apply for it
I had decided to get a new credit card so I started
looking around for one
12%
13
Awareness of New Cards: Not Looking for New Card
 While one-third of new cardholders say they had decided to get a new card and were researching their options, two in three hadn’t been
looking but decided to apply when they saw their new cards.
 These spontaneous cardholders are most likely to say they heard about their cards through mail offers, retail stores, and email offers.
Which of the following best describes you? How did you hear about your new credit card? [Multiple responses accepted]
Base: 1,696 consumers who were not looking for a new credit card
Offer in the mail from the credit card company
32%
26%
In a retail store (Target, Home Depot etc.)
12%
An email offer from the credit card company
11%
68%
9%
At my bank branch
9%
I was not looking for a new credit card but when I
heard about this one I decided to apply for it
I had decided to get a new credit card so I started
looking around for one
14
7%
5%
Cards in Consideration Set
 While the majority of new card owners (69%) did not consider any other cards, 13% evaluated one other card, 10% looked into two other
cards, and 8% considered at least three other cards.
 Just 57% of new Bank of America cardholders were considering only a Bank of America credit card -- 16% were deciding between Bank of
America and one other card, while roughly one-quarter were evaluating at least two cards besides Bank of America.
 Conversely, 76% of new Barclaycard owners weren’t considering any other cards in their search for a new card.
How many other credit cards did you consider at any point before you made the decision to apply for this card?
Three or
more
8%
9%
10%
7%
Three +
Two
10%
15%
16%
6%
6%
12%
9%
8%
8%
12%
10%
11%
16%
14%
10%
67%
66%
66%
Chase
(n=407)
Citi
(n=226)
Discover
(n=108)
17%
11%
13%
16%
Two
One
None
One
13%
76%
69%
62%
57%
None
69%
American
Express
(n=270)
Bank of
America
(n=231)
Barclaycard Capital One
(n=101)
(n=357)
15
Cards in Consideration Set
 Among consumers who researched multiple cards, close to one-third (31%) of American Express customers also looked at cards from
Bank of America and/or Citi .
 37% of new Bank of America owners considered an American Express card, while 28% of Capital One cardholders considered a Chase,
and 31% of Chase cardholders also looked into a Citi card.
Which other credit card issuers did you consider at any point during your search for a new card, before you selected your new credit card?
Base: 765 consumers with new credit cards who considered multiple cards while researching
Also considered…
Sample sizes
Only considered cards from this issuer
American
Express
Bank of
America
Barclaycard*
Capital One
Chase
Citi
Discover*
84
100
24
135
135
76
37
21%
20%
18%
13%
13%
37%
13%
24%
20%
15%
17%
14%
10%
7%
3%
30%
28%
American Express
Bank of America
31%
Barclaycard
10%
13%
Capital One
21%
19%
Chase
24%
17%
28%
Citi
31%
18%
19%
31%
Discover
12%
21%
18%
19%
21%
Other/not sure
17%
23%
29%
31%
24%
28%
*Sample sizes for Barclaycard and Discover are too small to report.
16
Important Features When Comparing Cards
 Close to half of consumers who compared cards in the past six months say the annual fee amount was an important factor in their
research (48%), followed by the type of rewards (34%) and the credit line (30%).
 The least important factors were the look and design of the card, rewards for having other accounts with the card issuer, and waiving
late payment fees.
What credit card features were most important to you when you were comparing different credit cards? [Multiple responses accepted]
No annual fee/annual fee amount
48%
The type of rewards
34%
Credit Line
30%
The amount of rewards I would
earn for my spending
28%
Low APR on balance transfers
17%
Standard purchase APR (after intro
rate expires)
15%
Getting a secured card
14%
Getting free FICO scores
13%
Fraud protection
21%
Card with an embedded microchip
13%
Brand of the credit card
20%
No balance transfer fees
12%
Bonus points, miles, or cash back
for new customers
20%
No foreign transaction fees
11%
Options for redeeming rewards
18%
Waiving late payment fees
9%
Intro purchase APR (low rate first
six months or year)
18%
Rewards for having other accounts
with bank that issues card
8%
The issuer of the credit card
18%
Look/design of the card
Customer service
18%
Other
17
6%
4%
Comparison Sites Used for Research
 8% of consumers with new credit cards say they heard about their new credit cards through a credit card comparison website.
 The top comparison site used was creditkarma.com (53%), followed by creditcards.com (20%).
Which credit card comparison web sites did you use for research when you were shopping for your new credit card? [Multiple responses
accepted]
Base: 192 consumers with new credit cards who heard about their new card through a comparison site
creditkarma.com
53%
creditcards.com
20%
credit.com
14%
nerdwallet.com
10%
bankrate.com
10%
cardratings.com
9%
lendingtree.com
8%
cardhub.com
7%
creditcardtuneup.com
7%
moneysupermarket.com
6%
lowcards.com
6%
thepointsguy.com
6%
comparethemarket.com
Other
3%
5%
Not sure
16%
18
Application Channels for New Cards
 Over half of consumers who opened new cards in the past six months did so online, while 48% applied through an offline channel:
 11% responded to a mail offer, 10% applied in person at a branch or office, and 9% applied in a retail store.
How did you apply for your new card?
Applied online on a bank or credit card issuer website
35%
Applied online on a credit card comparison site
Responded to a promotion or ad I saw online
9%
Responded to an offer in the mail
11%
Visited a bank or credit card issuer branch office
10%
Applied by phone
9%
Applied in a retail store (Target, Home Depot, Kohl's, etc.)
9%
Filled out an offer on an airline flight
1%
Filled out an offer at an airport table or kiosk
1%
Applied at an event (sporting event, concert, etc.)
1%
52%
applied
online
8%
48%
applied
offline
7%
19
Application Channels, by Issuer
 Most new cardholders -- particularly Capital One cardholders -- applied for their cards on the issuers’ websites.
 Capital One and Chase cardholders also used online resources like responding to an ad or applying via a credit card comparison web site.
 The most prevalent offline application methods were by phone (American Express at 17%), visiting a bank branch (Bank of America at
19%), and responding to a mail offer (Citi and Discover at 12% and 20%, respectively).
How did you apply for your new
card?
American
Express
Bank of
America
Barclaycard
Capital One
Chase
Citi
Discover
270
231
101
357
407
226
108
Applied online at bank or credit
card issuer website
35%
31%
39%
50%
38%
41%
40%
Applied online on a credit card
comparison site
7%
4%
10%
16%
10%
7%
10%
Responded to online promo or ad
10%
6%
11%
8%
19%
11%
14%
Responded to a mail offer
13%
9%
14%
14%
9%
12%
20%
Visited bank or issuer branch office
2%
19%
1%
3%
9%
2%
2%
Applied by phone
17%
13%
5%
7%
5%
10%
7%
Applied in a retail store
5%
5%
5%
0%
1%
10%
1%
Filled out an offer on a flight
1%
3%
1%
0%
0%
2%
0%
Filled out an offer at an airport
3%
1%
1%
0%
0%
1%
0%
Applied at an event
2%
3%
2%
0%
0%
0%
1%
Other
6%
6%
12%
2%
9%
4%
5%
Sample Sizes
20
Deciding Factors for New Cards
 Roughly one-third of new cardholders selected their new credit card because it does not have an annual fee.
 25% selected their cards for the rewards and issuer, and 22% for the payment network brand.
 13% were influenced by already having a banking relationship with the card issuer, and 11% chose their cards for the lower APR.
Which of the following are reasons you selected this new credit card? [Multiple responses accepted]
This card has no annual fee
32%
Has the rewards I was looking for
25%
I like the issuer
25%
I like the brand
22%
Amount of rewards I can earn for
my spending
Good intro offer for new customers
Seemed like a good card to have in
addition to the cards I already own
I needed more available credit
Received a special offer for this card
in the mail or electronically
22%
19%
19%
16%
I have a banking relationship with this bank
I wanted a credit card with a lower APR
11%
I wanted to transfer a balance onto a new card
10%
Did not have a card from this issuer but wanted one
9%
This card is affiliated with a company (airline, retail
store, etc.) that I use a lot
8%
I liked the advertisement for this credit card
7%
Have another card from issuer and wanted another
7%
Did not have card from this brand but I wanted one
6%
I like that this credit card is associated with my
college/university/association/sports team
Other
14%
13%
21
3%
5%
Deciding Factors for New Cards
 Having no annual fee, the rewards the cardholder was looking for, and the rewards earned from spending are the three most important
factors of getting a new credit card.
 A good introductory offer and liking the credit card issuer were highly influential as well, with 10% and 8% (respectively) selecting each
as their top factors.
Which of the following are reasons you selected this new credit card? What is the ONE most important reason why you selected your new card?
Percent selecting among reasons for choosing card; Percent selecting as #1 reason
Reason
Selected
#1 Reason
Reason
Selected
#1 Reason
No annual fee
32%
11%
Have a banking relationship with this
issuer
13%
5%
Had the rewards I was looking for
25%
11%
Wanted a card with a lower APR
11%
3%
Like the card issuer
25%
8%
Wanted to transfer a balance onto a
new card
10%
5%
Like the card brand
22%
5%
Wanted a card from this issuer
9%
3%
Amount of rewards I earn for my
spending
22%
11%
Card is affiliated with a company I
use a lot
8%
2%
19%
10%
Liked the advertisement for this card
7%
1%
Good card to have in addition to my
other cards
19%
6%
Wanted a second card from this
company
7%
2%
Needed more available credit
16%
7%
Wanted a card from this Brand
6%
1%
Received special offer in mail or
electronically
14%
5%
Like that this card is associated with
college/university/sports team
3%
1%
22
Top Reasons for Selection, by Issuer
 New American Express and Chase cardholders are most likely to be drawn to a good introductory credit card offer, while those choosing
a Capital One were most influenced by the lack of an annual fee.
 Roughly one-quarter of new Citi cardholders chose the card because of the amount of rewards they can earn from spending, while Bank
of America cardholders like Bank of America as an issuer.
What is the ONE most important
reason why you selected your
new card?
American
Express
Bank of
America
Barclaycard*
Capital One
Chase
Citi
Discover*
84
100
24
135
135
76
37
No annual fee
5%
7%
21%
10%
4%
Had rewards I was looking for
10%
8%
10%
10%
16%
Amount of rewards earned from
spending
10%
6%
8%
15%
24%
17%
8%
4%
15%
14%
7%
14%
13%
7%
7%
1%
13%
10%
1%
4%
Good credit card to have in
addition to my other cards
7%
5%
7%
6%
3%
12%
3%
4%
3%
1%
Have a banking relationship with
the credit card issuer
0%
9%
4%
2%
1%
Wanted to transfer a balance onto
the new card
2%
2%
1%
10%
9%
Sample sizes
*Sample sizes for Barclaycard and Discover are too small to report.
Base: Consumers with new credit cards who considered multiple cards while researching
23
Top Reasons for Selection, by Rewards Type
 Close to 20% of new cash-back cardholders say the top reason they selected their card was because of the amount of rewards they can
earn for their spending, while retail cardholders are more likely to like the issuer and travel cardholders were looking for travel rewards.
 13% of cardholders who don’t have a rewards card ultimately selected the cards because they needed more available credit.
New credit card owners of…
What is the ONE most important reason
why you selected your new card?
Sample sizes
Cash-back
Proprietary points
Retail
Travel
No rewards
289
44
100
151
82
Amount of rewards I can earn for my
spending
17%
9%
8%
1%
Had the rewards I was looking for
13%
13%
13%
1%
No annual fee
12%
12%
7%
18%
9%
8%
9%
12%
7%
15%
7%
6%
3%
5%
6%
6%
6%
6%
6%
13%
Good card to have in addition to current
cards
6%
6%
6%
6%
Received a special offer for this card in the
mail or electronically
3%
5%
7%
7%
I have a banking relationship with this issuer
5%
4%
5%
10%
*Sample sizes for proprietary points are too small to report.
Base: Consumers with new credit cards who considered multiple cards while researching
24
Top Reasons for Not Opening Card with Primary Banks
 The main reason why customers who consider Bank of America, Chase, or Wells Fargo to be their primary banks did not open a new card
with these banks is because they already have a card through them – this is slightly higher for Bank of America and Wells Fargo customers.
 Chase customers are more likely to say the bank doesn’t offer a card with good rewards.
 Bank of America and Chase customers are more likely than Wells Fargo customers to say their bank does not offer the type of credit card
they were looking for.
When you applied for your new credit card, why didn't you apply for a card from your primary bank? [Multiple responses accepted]
Base: Cardholders who opened a credit card in the past 6 months with an issuer other than their primary bank
I already have a credit card with my primary bank
49%
My bank does not offer the type of credit card I was looking for
9%
My bank does not offer credit cards with good rewards
My bank does not offer credit cards that are as good as the competition
My bank doesn't offer cards with the rewards program I was looking for
I did apply with my bank but they declined my application
I don't want to have my debit card and credit card from the same bank
My bank has poor customer service
My bank does not offer any credit cards
My bank does not have a good reputation
Other
3%
13%
16%
12%
12%
12%
6%
13%
10%
10%
9%
6%
11%
18%
Bank of America is Primary Bank (n=93)
Chase is Primary Bank (n=83)
Wells Fargo is Primary Bank (n=78)
5%
7%
9%
6%
5%
4%
4%
1%
0%
3%
0%
3%
13%
17%
17%
25
53%
53%
SECTION 3:
NEW CARDS: SATISFACTION, TOP-OF-WALLET
26
Satisfaction with New Credit Card
 Overall, new Capital One and Chase cardholders are most satisfied, while cardholders show the highest level of satisfaction for cards
with cash back rewards, and the Chase Freedom card tops the list for specific top products.
Overall, how satisfied are you with your new credit card? (Top 2 Box)
Capital One
(n=357)
86%
Chase Freedom
Cash-back
Chase
(n=407)
Discover
(n=108)
Satisfaction by
Top Products
Satisfaction by
Reward Category
Satisfaction
by Issuer
85%
(n=951)
Capital One Platinum
88%
(n=100)
83%
Retail
82%
Capital One Quicksilver
(n=288)
American Express
93%
(n=87)
86%
81%
87%
(n=110)
(n=270)
Bank of America
81%
(n=231)
Citi
Travel
80%
77%
BankAmericard Cash Rewards
(n=101)
Wells Fargo
79%
(n=150)
Amex Blue Cash Everyday
79%
(n=87)
No rewards
68%
84%
(n=92)
72%
(n=89)
Other
Points
84%
(n=96)
(n=380)
(n=226)
Barclaycard
Discover It
82%
69%
Chase Amazon
(n=341)
(n=133)
(n=711)
27
78%
Reasons for Satisfaction with New Credit Card
 Rewards are strong drivers of satisfaction for cash back, retail, and travel cards. Additionally, having no annual fee is a driver of
satisfaction for the cash back, points, retail, and non-rewards credit cards.
Which of the following are reasons you are satisfied/very satisfied with your new [credit card brand and product] credit card?
Base: Satisfied/very satisfied with card
Rewards Category
Cash-back
Proprietary
points
Retail
Travel
No rewards
(n=821)
(n=118)
(n=236)
(n=310)
(n=236)
Like the rewards
66%
53%
51%
55%
3%
Card has no annual fee
65%
56%
50%
31%
48%
Card is accepted everywhere I shop
47%
42%
33%
38%
37%
Credit card brand that I trust
42%
41%
36%
36%
30%
Credit card issuer that I trust
40%
29%
25%
34%
32%
Good credit card brand
37%
32%
28%
33%
30%
Like what I can redeem rewards for
34%
42%
42%
51%
1%
Like the introductory offer for new customers
(e.g., 0% APR, bonus points/miles, etc.)
30%
30%
23%
31%
20%
Good credit card issuer
29%
27%
16%
25%
19%
Has the credit line I want/need
25%
25%
25%
18%
38%
Source: Lightspeed Research Card Acquisition Survey, April 14-28, 2016. Top ten reasons for satisfaction are shown.
28
Reasons for Satisfaction with New Credit Card, by Issuer
 The rewards programs and absence of an annual fee are the main drivers of satisfaction for American Express and Bank of
America credit cards.
Which of the following are reasons you are [satisfied/very satisfied] with your new [credit card brand] [product] credit card?
Base: Satisfied/very satisfied consumers with new credit cards from each issuer
American Express
Bank of America
(n-220)
(n-188)
Like the rewards
55%
No annual fee
49%
No annual fee
49%
Like the rewards
47%
Is a brand that I trust
48%
Card accepted everywhere I shop
40%
Is an issuer that I trust
44%
Is a credit card brand that I trust
36%
Is a good credit card brand
39%
34%
Has good customer service
35%
Like what I can redeem rewards
for
Liked the intro offer for new
customers
33%
Like what I can redeem rewards
for
customers
32%
32%
31%
Is a credit card issuer that I trust
29%
Is a good credit card issuer
29%
24%
I feel protected from identity
theft or fraud
28%
Card issued by bank where I have
my primary checking account
21%
29
Reasons for Satisfaction with New Credit Card (cont.)
 Barclaycard cardholders are most satisfied by the absence of an annual fee on their card, while card acceptance is a primary factor
in satisfaction for Capital One cardholders.
Barclaycard
Capital One
(n-78)
(n-308)
No annual fee
68%
57%
Like the rewards
58%
No annual fee
46%
56%
Is an issuer that I trust
45%
45%
Like the rewards
42%
33%
40%
29%
39%
customers
26%
37%
Has the credit line I need/want
26%
33%
Gives me my FICO score for free
26%
Has good customer service
27%
Is a credit card issuer that I trust
21%
Gives me FICO score for free
26%
30
 The primary drivers of satisfaction for both Chase and Citi cardholders is the absence of an annual fee and that they like the
rewards program.
Chase
Citi
(n-345)
(n-181)
Like the rewards
52%
Like the rewards
60%
No annual fee
49%
No annual fee
57%
46%
44%
43%
34%
Is a brand I trust
39%
34%
Is an issuer I trust
35%
Is a brand I trust
33%
33%
customers
33%
customers
32%
31%
25%
26%
21%
24%
31
 Wells Fargo, and particularly Discover cardholders cite the lack of an annual fee as a primary reason for card satisfaction.
 Over half of Discover cardholders indicate that their free FICO score has a positive impact on their satisfaction with Discover.
Discover
Wells Fargo
(n-90)
(n-64)
No annual fee
71%
No annual fee
48%
Like the rewards
57%
48%
Gives me FICO score for free
51%
Like the rewards
44%
40%
41%
39%
30%
Is a brand I trust
33%
27%
32%
customers
27%
customers
30%
27%
29%
Is a brand I trust
25%
28%
25%
32
Reasons for Satisfaction with New Credit Card (Cont’d)
 Having no annual fee is a main driver of satisfaction for a majority of these credit card products.
 The rewards programs are a main driver of satisfaction for Capital One Quicksilver and Citi Double Cash cards.
Which of the following are reasons you are
[satisfied/very satisfied] with your new
[credit card brand] [product] credit card?
Base: Satisfied/very satisfied with card
Amex
Blue Cash
Everyday
BankCapital One
Americard
Platinum
Cash Rewards
Capital One
Quicksilver
Chase
Amazon
Chase
Freedom
Citi
Double Cash
Discover
It
(n=69)
(n=77)
(n=88)
(n=96)
(n=104)
(n=81)
(n=68)
(n=88)
No annual fee
77%
64%
47%
52%
61%
68%
76%
72%
Like the rewards
61%
57%
14%
69%
61%
52%
85%
56%
Accepted everywhere I shop
13%
40%
60%
67%
48%
49%
57%
33%
Good credit card brand
42%
39%
36%
41%
40%
30%
31%
41%
Credit card issuer that I trust
48%
29%
42%
49%
31%
41%
35%
42%
Credit card brand that I trust
49%
36%
35%
50%
41%
42%
35%
35%
Good credit card issuer
41%
25%
39%
46%
27%
26%
21%
31%
28%
27%
3%
32%
47%
46%
40%
26%
Like the introductory offer
41%
31%
16%
28%
14%
35%
18%
31%
16%
21%
43%
28%
19%
27%
18%
28%
33
Reasons for Satisfaction with New Card Rewards
 Across all issuers, most cardholders like that the rewards are easy to redeem and they get bonus rewards on things they buy most.
Why did you say you like the rewards on this new
[issuer] [product name] credit card?
Issuer
American
Express
Bank of
America
Barclaycard
Capital One
Chase
Citi
Discover
(n=120)
(n=89)
(n=45)
(n=129)
(n=181)
(n=109)
(n=51)
Easy to redeem rewards
58%
63%
73%
65%
56%
63%
Bonus rewards on things I buy most
43%
48%
20%
34%
22%
43%
Unlimited rewards with no caps
20%
31%
46%
31%
42%
25%
Great value for various redemption options
16%
26%
23%
22%
24%
18%
Flexible rewards
18%
22%
22%
26%
17%
24%
Offers a high earn rate
12%
16%
22%
16%
28%
20%
Gives me rewards for businesses I use
13%
15%
10%
32%
12%
12%
Other
3%
3%
3%
2%
5%
2%
Base: Like rewards on credit card
*Sample sizes for Barclaycard are too small to report.
Reasons for Satisfaction with Credit Card Issuers
 The brands’ reputation is the biggest driver of issuer satisfaction for American Express, Capital One, and Chase
customers.
Why did you say that you are satisfied with your new card because [issuer] is a good issuer?
Base: consumers with new credit cards from each issuer who said it’s a good issuer among reasons for satisfaction
76%
74%
76%
Issuer has a good brand reputation
62%
49%
52%
Issuer offers great customer service
57%
47%
64%
Issuer offers great security and fraud protection
51%
54%
59%
I trust this issuer with my financial information
40%
45%
53%
Issuer offers great credit card products
I have had a good experience with this issuer in the
past
Other
46%
2%
1%
1%
63%
63%
American Express (n=63)
Capital One (n=121)
Chase (n=86)
35
New Card vs. Replacement Card
 Among consumers who opened a new credit card within the past six months, most opened that card as a new card -- one that is not
replacing any other cards.
 With over one-third acquiring their card as a replacement card, American Express and Citi are the most likely issuer of new cards
to replace another card (38% and 35% respectively).
Is your new credit card…
Issuer of the
New Credit Card
A replacement for some other card you're no longer using
A new card to have in your wallet (but not replacing any other cards).
Total
n=2,500
25%
75%
American Express
38%
62%
n=270
Bank of America
n=231
Barclaycard
27%
22%
73%
78%
n=101
Capital One
20%
80%
n=357
Chase
25%
75%
n=407
Citi
35%
65%
n=226
Discover
23%
77%
n=108
Wells Fargo
26%
74%
n=89
19%
81%
n=711
36
Rewards on Replacement Credit Cards
25%
 If cardholders have a new card that is a non-rewards card, it is highly likely to have replaced a
non-rewards card (63%).
75%
 Cardholders who have a new rewards card are likely to have replaced a cash-back card (40%) or a
non-rewards card (17%).
New Card
Replacement Card
What type of rewards, if any, can you earn
on your new credit card?
Rewards on Replaced
Credit Card
Base: Cardholders whose new card is a
replacement for some other card they’re no
longer using.
New Card is
Non-Rewards Card
New Card is
Rewards Card
Not Sure
57
484
84
I did not earn rewards on that card
63%
17%
26%
Cash-back that is not airline/hotel/retail
9%
40%
10%
Airline miles
2%
14%
1%
Retail rewards
5%
8%
8%
Points that are not airline/hotel/retail
4%
9%
4%
Hotel rewards
2%
4%
1%
2%
4%
0%
Not sure
14%
5%
50%
Sample sizes
37
New card is
primary card
Credit Card Issuer of Displaced Primary Credit Card
 Cardholders who are using their newly acquired credit card as their primary credit card are most likely to have been using a Chase or
American Express as their previous primary credit card.
Before you started using your new credit card as your primary card, who was the issuer of the card you used most often for purchases?
Base: 798 US consumers whose new card is their primary credit card
Chase
16%
American Express
15%
Capital One
14%
Bank of America
13%
Citi
6%
Discover
5%
Wells Fargo
Barclaycard
4%
2%
Other
Not sure
19%
7%
38
New card is
primary card
Previous and New Primary Card
 American Express, Bank of America, and Chase cardholders have a relatively high rate of choosing the same issuer for their new
primary credit card as their former primary card.
Former Primary
Credit Card
Newly Acquired Primary Credit Card
American
Express
Bank of
America
Barclaycard*
Capital
One
Chase
Citi
Discover*
Wells
Fargo*
Other
103
91
19
174
128
76
37
26
144
American Express
47%
18%
6%
13%
11%
8%
Bank of America
6%
34%
11%
9%
11%
10%
Barclaycard
0%
1%
5%
3%
0%
1%
Capital One
10%
13%
13%
14%
20%
11%
Chase
13%
11%
15%
25%
24%
13%
Citi
5%
8%
4%
8%
12%
4%
Discover
7%
4%
5%
6%
5%
5%
Wells Fargo
2%
2%
5%
3%
4%
4%
Other
10%
5%
22%
15%
14%
31%
Not sure
2%
3%
14%
4%
0%
12%
Sample sizes
*Sample sizes for Barclaycard, Discover, and Wells Fargo are too small to report.
39
New card is
primary card
Type of Rewards on Replaced Card
 Close to one-quarter (21%) of cardholders who are using their new card as their primary credit card did not have any rewards on their
previous primary credit card.
 Over one-third of cardholders with non-travel cash-back primary credit cards were likely to switch to using their newly acquired card as
their primary credit card.
Before you started using your new credit card as your primary card,
what kinds of rewards, if any, did you earn on the card you were
using most often for purchases?
Rewards on previous
primary credit card
New Card is Primary Card
Sample size
798
38%
Airline Miles
13%
8%
4%
Retail rewards
4%
Hotel rewards
3%
I did not earn rewards on this card
21%
Not sure
7%
40
New card is
NOT primary
card
Primary Credit Card if New Card is Not Primary Card
 Cardholders who are not using their newly acquired credit card as their primary credit card are most likely to use Chase
or Capital One as their primary credit card.
Who is the issuer of the card that you ARE using as your primary card – the card you use most often for purchases?
Base = 1,702 US consumers whose new card is not their primary credit card
Chase
17%
Capital One
12%
Bank of America
10%
Discover
10%
American Express
9%
Citi
7%
Wells Fargo
Barclaycard
4%
2%
I don't have a primary card
19%
10%
41
New card is
NOT primary
card
Type of Rewards on Replaced Card
 In general, cardholders who do not use their newly acquired card as their primary credit card are highly likely to use
Chase or Capital One as their primary card.
Previous Credit Card That
is Still Primary Card
Newly Acquired Non-Primary Card
American
Express
Bank of
America
Barclaycard
Capital
One
Chase
Citi
Discover
Wells
Fargo
Other
167
140
82
183
279
150
71
63
567
American Express
21%
8%
11%
2%
7%
11%
8%
8%
7%
Bank of America
10%
34%
4%
7%
11%
13%
8%
2%
6%
Barclaycard
1%
3%
6%
3%
2%
4%
1%
0%
2%
Capital One
8%
9%
13%
25%
9%
9%
24%
10%
11%
Chase
22%
8%
18%
14%
29%
17%
20%
6%
14%
Citi
6%
10%
5%
6%
6%
12%
6%
8%
5%
Discover
8%
14%
21%
4%
10%
15%
7%
6%
8%
Wells Fargo
4%
3%
1%
4%
5%
3%
1%
32%
3%
Other
17%
7%
15%
22%
13%
13%
13%
19%
28%
No primary card
5%
4%
6%
13%
10%
4%
11%
10%
14%
Sample sizes
42
Rewards on Primary Card When New Card is Not Primary
 Cardholders who are not using their newly acquired credit card as their primary credit card are most likely to have non-travel
cash-back rewards on their primary credit card.
What type of rewards, if any, do you earn on your primary card?
Base: 1,531 US consumers whose new card is not their primary credit card
44%
Retail rewards
10%
8%
Airline miles
7%
Hotel rewards
3%
3%
I did not earn rewards on this card
Not sure
15%
9%
43
New card is
NOT primary
card
Lightspeed Research
Greg Flemming
Senior Vice President
gflemming@lightspeedresearch.com
617.912.2805
Pamela MacMahon
Research Director
pmacmahon@lightspeedresearch.com
617.912.2806
Rebecca Smith
Research Analyst
rsmith@lightspeedresearch.com
617.912.2802
44

here - Lightspeed FSG

Transcription

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