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Co-brand with Confidence


Help Prevent
Card Switching

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Co-brand with Confidence


Help Prevent
Card Switching


Decrease Attrition by Increasing Sticky Behavior


Competition among credit cards is becoming increasingly intense. And with a current market that is offering low introductory offers and rich acquisition incentives, it is becoming harder and harder to retain loyal customers. A 2016 survey conducted by CreditCards.com revealed that 24 percent of respondents indicated a card switch over the past three years with 43 percent of Millennials making a switch.*

Fortunately, co-brand cardholders tend to be more loyal than the general credit card population.  But given the constant noise in the credit card marketplace, and the increasing richness of offers, co-brands can’t afford to let their guard down. One effective strategy that helps discourage card switching: driving sticky behavior. Creating “sticky behavior” refers to encouraging card usage in ways that require effort on the cardholder’s part to change in the future, thereby creating barriers to attrition.

Media Logic has developed marketing strategies and campaigns for Issuers and co-brands that encourage different forms of sticky behavior:

Automatic bill payments

Online payments

Mobile wallets and apps

 

Strategy 1


Automatic bill payments

Strategy 1


Automatic bill payments

Encouraging the use of a co-brand card to automatically pay for recurring bills is a time-tested strategy to improve card stickiness.

And because most co-brand cards offer some form of rewards program, the incentive is an easy sell: “Earn rewards automatically every month — for bills you have to pay anyway”.

But instead of leading with an automatic bill pay message, we’ve learned through testing that the most effective strategy is to first promote the use of the card to pay a single, one-time bill. Once a customer has done that, they will be more willing to migrate to automatic recurring payments.

 

 

Strategy 2


Online payments

Strategy 2


Online payments

Another way to increase card stickiness is to encourage the use of cards with online payment systems and e-retailers that enable purchases with stored credit card information, such as PayPal, Amazon.com, and iTunes.

Cardholders are less likely to switch cards because of the psychological barrier to switching (“effort”). The more the cardholder makes their co-brand card their go-to card, the bigger the barrier.

An effective marketing strategy is to remind cardholders that they could be earning rewards on their purchases. Secondary benefits include a reminder of the extra level of security their credit card provides them.

 

 

Strategy 3


Mobile wallets and apps

Strategy 3


Mobile wallets and apps

The use of mobile wallets and payment apps, such as Apple Pay, Android Pay and Google Pay, is increasing at a rapid pace and is expected to grow even more. This presents a unique set of opportunities. These platforms typically allow for multiple cards, with one card being the default payment method.

The key to driving sticky behavior in this platform is to create marketing messages that remind cardholders of the benefits of using their co-brand card in these platforms (i.e., rewards) and encouraging them to make their card their default.

Because switching default payment methods in these platforms is easy and low-lift, developing ongoing communications with incentive offers will be the key to remaining “top of wallet.”

 

 
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The Agency


Who is
Media Logic?

The Agency


Who is
Media Logic?


We are a financial services marketing agency with extensive experience developing marketing strategies and creative executions for co-brands across a wide range of vertical businesses and brands.


 

We go BIG on partnership.

 

Financial


sponsorship


hospitality


Retail


Airline/Cruise lines


Automotive

 

We make things happen.

 
 

We are the perfect mash-up of
STRATEGY and CREATIVE.

 
 
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Contact


Get to know us.

Contact


Get to know us.

Jim McDonald, Director of Business Development

If you have a specific co-brand need or just want to learn more about Media Logic, email Jim McDonald or call 866.353.3011 x274.