As a card business evolves from new account to maturity, lifecycle tactics and strategies must be periodically evaluated and adjusted to maximize card activation and customer loyalty. The GLOBAL PAYMENTS CONSULTING team can leverage decades of card program management experience to ensure early activation strategies within the first 60 days of a new account, develop ongoing promotions to keep your cardholders engaged, and harvest by month of customer acquisition.
We analyze the percentiles by credit lines to define ranges of all accounts by activity levels, including early activation, reactivation offers, and customer retention based on account usage history.
The fundamental purpose of this project will be to structure the life cycle strategy and implement the initiatives of early activation, frequency of use, reactivation of the portfolio, and proactive client retention that allows a comparison of the card business with the different indicators by segments and by product types (Classic, Gold, Platinum, Signature or Black) compared to the Industry Benchmark.
The methodology used to implement the lifecycle project for credit card products consists of identifying business strategies to measure the variables and critical indicators of the processes of new accounts, issuance and delivery of cards, card activation, and use. Furthermore, we will review the use of limits and service quality of authorizations by differentiating statistics by functions and processes developed by product types and customer segments to generate a business trend.
THE KEY LIFE CYCLE INITIATIVES INCLUDES:
• Develop a strategy to define the life cycle for the card business to differentiate the behavior of customers of credit and debit card products.
• Implement initiatives to optimize the growth of the new account acquisition, early activation, and reactivation of existing credit card products. This will be implemented by analyzing the strategies and new account channels, the early activation initiatives of the first purchase from the first to the third month of acquisition.
• In addition, we will review reactivation strategies for the card portfolio for cards without usage from 3 to 6 months, with the review of the card value proposition and the credit limits, the differentiation of interest rates, as well as the segmentation strategies of the portfolio to increase the primary customers.
• Execute a consistent methodology for calculating the key indicators according to the industry’s lifecycle standards to establish comparison for each card product.
• Analyze the indicators of each function and process of the life cycle and compare the defined goals with the results of the industry.
• Evaluate the dynamic administration of the portfolio and frequency of use of the cards; use indicators are evaluated as billing by account, the average balance per account, percentage of cash withdrawals, percentage of international transactions, deferred balance, and use the line of credit by product type.
• Analyze investments in new technologies to increase banking penetration and market penetration and mobile banking, proximity payments, transfer from person to person, electronic commerce, artificial intelligence, and blockchain, etc.