ATLANTA--(BUSINESS WIRE)--Credit card customers have gained the upper hand in negotiating rates, according to a recent research study by SYNERGISTICS RESEARCH CORP. entitled, Credit Cards: Marketing Warfare. The national Internet survey was conducted in September of 2006 with 1,000 cardholders age 18 or older.
In the survey, one-third (33%) of card users report that they have at some point asked one of their credit card providers for a lower interest rate in order to keep them as customers. More than four in ten (44%) revolvers and about one-quarter (24%) of convenience users have asked for a rate reduction. Slightly more than three-fourths (78%) of those asking for a rate reduction report that they were successful. About one-tenth (11%) did not get a lower rate and canceled their card. Overall, nearly nine in ten (89%) of those who asked for a lower rate either got a lower rate or canceled their card.
Genie M. Driskill, COO of SYNERGISTICS, stated, “The credit card market is more challenging than ever. Brand identity and issuer loyalty are dead. Credit cards are the most portable financial product in the marketplace. The market is plagued with volatility. Now, consumers are negotiating rates. Most are successful; those that are not -- just say no by canceling their cards. Card issuers have few choices -- they either agree to lower rates or lose relationships. In this environment, credit card issuers need to find new avenues for differentiation.”
These are findings from SYNERGISTICS study, Credit Cards: Marketing Warfare, featuring a national Internet survey of 1,000 cardholders age 18 or older. This study examines the consumer experience with credit cards, assessing their perceptions concerning brand issues, prestige cards, rewards, customer service, and cross-selling. It will assist providers in designing and optimizing their credit card marketing efforts.
SYNERGISTICS is the leading provider of multisponsor marketing research for the financial services industry. For information, contact Genie M. Driskill, COO/SVP-Research, or William H. McCracken, CEO, SYNERGISTICS, 2951 Flowers Rd. South, Suite 230, Atlanta, GA 30341. Tel: (800) 423-4229 or (404) 237-3373 - Fax: (404) 237-6470 - E-Mail: email@example.com - Web Site: www.synergisticsresearch.com