By now, holiday decorations are stashed away, New Year’s resolutions have been made (/broken?) and many of us are back at it with our daily routines. But instead of expecting much of the same this year, I wanted to offer up 5 card marketing trends to be on the lookout for in 2023:
1. Growing inflation will mean a greater reliance on credit cards.
According to a recent report by Bankrate, 46% of cardholders are carrying debt month to month, up from 39% last year. As cardholders often have multiple cards to choose from, there is an opportunity to move to 1st or 2nd in wallet and deepen loyalty by helping them identify ways to reduce their debt, educate / remind them of available credit tools, etc.
2. Eyes within the industry are focused on the pending Credit Card Competition Act bill.
If successfully passed, there may be far reaching implications to both issuers and cardholders alike. It is anticipated that reduced interchange fees could lead to less robust rewards programs (e.g., lower point earn potential, cash back percentages, miles, etc.). Relatedly, merchants will begin providing cardholders more ways to pay beyond the traditional networks. As such, card marketers should reinforce the benefits, features and overall security their credit / debit card purchases provide.
3. While establishing loyalty has always been at the forefront of any card lifecycle strategy, issuers have begun tangibly demonstrating to their cardholders how much they value and appreciate their business.
With a noticeable uptick in customer appreciation communications in 2022 – e.g., access to exclusive events, cardholder appreciation opportunities, sweepstakes for cardholders to stay engaged, etc. – it is anticipated that these will increase, as issuers vie to develop long lasting cardholder relationships.
4. The continued rise of neobanks have changed more than just what cardholders think of their financial services provider.
It has changed how they interact with them. Communication journeys and cardholder engagement tactics must go above and beyond traditional direct mail and email. Cardholders now expect personalized interactive experiences and videos with their mobile apps and online banking platforms.
5. More and more companies are committing to being environmentally conscious with updated mission statements, processes and practices.
In the 2022 Business of Sustainability Index, it was found that 64% of Americans were looking for a credit card that automatically offset a portion of their purchase’s environmental impact and issuers have taken note. Rewards programs now provide more options to donate their points/miles to charity… and one bank even pledges to plant trees for every $50 spent on the card. Though you don’t need to necessarily overhaul your program, it is important to know that your cardholders and prospects are paying attention to what you are (and aren’t) saying.
Pragmatic can help you capitalize on these! Or have a few trends or predictions of your own? I would love to hear them. Let me know if you’d like to connect.