PR Newswire: news distribution, targeting and monitoring
2014

Cash is King When it Comes to Credit Card Incentives, Reports Mintel Comperemedia

Share with Twitter Share with LinkedIn

CHICAGO, June 15, 2011 /PRNewswire/ -- Competition is always fierce in the credit card industry, and these days issuers are sweetening incentives to grab consumers' attention in an increasingly crowded mailbox. According to Mintel Comperemedia, cash in particular is becoming the enticement of choice, as 23% of credit card offers in January-April 2011 included an additional cash incentive, compared to just 1% during the same period in 2007.  

(Logo: http://photos.prnewswire.com/prnh/20100413/MINTELLOGO-b)

"An additional cash incentive, usually triggered upon first purchase or once a cardholder spends a specific amount on the card, has been popular in the competitive cash back card segment," says Andrew Davidson, senior vice president, Mintel Comperemedia. "However, we are now seeing cash used as an additional incentive for some mileage cards, as well as cards without rewards."

Fifty-nine percent of offers for new credit cards in the first four months of the year promoted some form of additional incentive to encourage potential applicants to sign up for a card, compared to 30% during the same period in 2007. Despite the growth of cash, miles and points are still the most popular incentive—25% of offers during January-April 2011 lured potential customers with bonus miles or points.

"It is getting to the point where, in some cases, the incentive is so attractive that consumers may as well apply for a card to cash-in on its incentive regardless of whether they have any serious intent to use the card in the long term," notes Andrew Davidson. "The challenge for issuers will be getting these incentive-driven switchers to change their spending behavior and become loyal cardholders."

Chase has been setting the pace by offering $300 as a cash incentive in some offers for its Freedom card and 100,000 bonus miles in offers for its British Airways Visa Signature card—enough for two transatlantic round-trip tickets, or four domestic round-trip tickets.

About Mintel Comperemedia

Mintel Comperemedia provides competitive intelligence for businesses looking to advance and improve their direct marketing strategy. Tracking direct marketing (including mail, email and print advertising) targeted at consumers, small businesses and insurance agents, Mintel Comperemedia offers a unique perspective on everything from banking trends to insurance trends to credit card statistics. For more than 38 years, Mintel has provided insight into key worldwide trends, leading the industry for consumer, product and media intelligence. Follow Mintel on Twitter: http://twitter.com/mintelnews

SOURCE Mintel Comperemedia



RELATED LINKS
http://www.comperemedia.com

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release