Co-Branded and Affinity Credit Cards: The U.S. and Global Markets and Opportunities, 3rd Edition

 
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Published Nov 1, 2009 | 266 Pages | Pub ID: LA1928141

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The market for co-branded and affinity cards is over two decades old. Issuers have worked to make payment cards more attractive to cardholders through value-adding initiatives such as rebates and rewards. This has been a major growth driver in the co-branded and affinity card space over the past few years, but there is some evidence that the pendulum has begun to swing in favor of proprietary bank reward programs.

In the U.S., where the market for co-branded and affinity card is extraordinarily mature, experts interviewed by Packaged Facts estimate that between one quarter and one third of the plastic held by Americans are co-branded or affinity cards. And because co-branded and affinity credit, payment and debit cards have become such an integral part of the U.S. card industry, the growth of this market cannot be separated from the shift in consumer payment preferences from paper to plastic and electronic vehicles, and from the huge expansion in U.S. consumer indebtedness. Other forms of mobile payments, such as contactless cards, mobile phones and contactless watches are gaining traction.

As the U.S. market matures—and possibly plateaus—issuers are seeking new growth opportunities in Europe, Asia and other regions. However, there are wide variations in the extent to which consumers, issuers and merchant partners in the various national markets have embraced co-branding.

Scope of the Report

Packaged Facts’ 2009 report, Co-Brand and Affinity Credit Cards: The U.S. and Global Markets and Opportunities, 3rd Edition, examines how the market and players have changed over the past two years, and answers important questions including:

  • What new products are co-branding partners offering?
  • What new segments offer the most opportunity?
  • How are international markets evolving?
  • How are partners coping with the world’s grim economic realities?
  • What is the best advice experts have to offer?

In addition, this report features the results of Packaged Facts’ 2009 proprietary consumer survey, which explores co-branded and affinity card usage, front-of-wallet, most desired card features, channels and card information sources.

Read an excerpt from this report below.

Methodology

Packaged Facts’ study of co-branded and affinity cards is based on extensive secondary research and interviews with industry and regional experts. Secondary sources include data-gathered from relevant trade, business, and government sources, including card industry journals, trade and general press (print and electronic), annual reports and 10(k) filings, company literature, consultancy publications, Packaged Facts reports, websites and white papers.

Interviews were conducted with representatives of Discover, Visa, Visa Europe, Capital One, Kroll-Info Americas, Maritz Inc., Auriemma Consulting Group and other marketing and consulting firms operating in the co-branded and affinity card space.

Packaged Facts’ analysis of consumer behavior and demographics derives from the our Custom Online Survey of 2,606 adults, Experian Simmons Market Research Bureau’s (New York, NY) adult consumer surveys, which are based on approximately 25,000 respondents age 18 or over.

About the Author

An expert in primary research, Therese (Té) Revesz is the principal of Revesz International LLC. She has conducted thousands of in-depth interviews with business, political and labor experts around the world. She was featured in Super Searchers Go to the Source as one of the U.S.'s top primary researchers. Prior to founding Revesz International, Té headed the Healthcare and Industrial Practices of FIND/SVP's Strategic Consulting and Research Group and was its International Practice Coordinator. She was also a Director of FIND's Signia Partners division. Before joining FIND, Té served at Business International as Director of North American Publications, Editor-In-Chief of its global newsletter, and helped create BI's global risk assessment product. She also worked at Prudential-Bache's financial planning group and at Citibank's Washington Representative Office.

What You’ll Get in this Report

Co-Brand and Affinity Credit Cards: The U.S. and Global Markets and Opportunities, 3rd Edition makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Co-Brand and Affinity Credit Cards: The U.S. and Global Markets and Opportunities offers.

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You Will Benefit from this Report

If your company is already doing business in the co-branded and affinity credit card market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for co-branded and affinity credit cards, as well as projected markets and trends through 2012.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for co-branded and affinity credit cards.
  • Research and development professionals stay on top of competitor initiatives and explore demand for co-branded and affinity credit cards.
  • Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel consumers to use co-branded and affinity credit cards.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.
Chapter 1: Executive Summary
Scope of the Report
Overview
Definitions: Co-branded versus Affinity Cards
Players: Links in the Co-branded and Affinity Cards’ Value*
Methodology and Sources
Expert Interviews
Simmons Experian Surveys
Packaged Facts Conducts Custom Survey
Market Size and Trends
Consumers’ Payment Preferences
Credit and Debit Cards in Force Continue to Show a Saturated U.S. Market
Forces Driving Consumer Card and Co-branded Card Usage
U.S. Consumers Walloped
Contracting U.S. Consumer Credit
Card Issuers Winnow Their Portfolios, Cut Rewards, Homogenize Reward Programs
Reward Programs a Major Co-branded Card Market Driver
Figure 1-1: U.S. Rewards-Based Credit Cards versus General Purpose Credit Cards Without Rewards, 2003 vs. 2007 vs. 2011(F)
Co-branded Cards in Force
One in Five U.S. Cardholders has an A/S Credit Card
Packaged Facts Custom Survey Finds More than Half of Consumers Own Co-branded or Affinity Cards
Figure 1-2: Ownership of Partnership and Sponsor Cards, February 2009
Co-branding Around the World
International Payment Trends
Table 1-1: Use of Payment Instruments by Non-banks: International Card Payment Trends, 2003 vs. 2007
Europe Co-branding Market: “Hugely Different from the U.S.”
Latin America: Growing Middle Class Generates Issuer/Partner Interest
Asia: A Patchwork Quilt
Consumer Demographics & Psychographics
Online Consumers Higher Users of Co-branded and Affinity Cards
Figure 1-3: Generational Patterns for Ownership of Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009 (by percentage and index)
Non-Hispanic Whites and Asians Favor A/S Cards; Blacks and Hispanics Are Underrepresented
A/S Card Owners More Financially Secure and Financially Savvy than the Average Consumer
The Competitive Arena: Brand Networks
Credit Card Industry is Undergoing Major Changes
Payment Networks and Their Brands
Ownership and Use of Co-branded and Affinity Cards
Fewer Own Co-branded or Affinity Debit Cards
Figure 1-4: Ownership of Network Branded Co-branded and Affinity Cards, 2009
Marketing Dynamics
Decision Drivers and Information Sources
With All Those Carefully Crafted Benefits, What Really Matters to Co-branded and Affinity Card Users?
Table 1-2: Features That Drive Acquisition of Co-branded and Affinity Cards versus Standard Cards
Where Do Marketers Spend Their Money
Branches are Bastion of Card Promotion—the Buzz Word is CRM
Communicating with the Consumer via the Internet
Email Marketing: Boosting Co-branded Card Use
Small Business—Lots of Opportunity for Co-branders
Gen Y: Internet Lovers Who Embrace Co-branded and Affinity Cards
Boomers—Still Influential, But Saving More and Spending Less
Ethnic Marketing
Going Forward
Legal Challenges in the U.S. to the Credit Card Reform Act of 2009
Emerging Payment Products: A Structural Break
Mobile Payments (mPayments): Are the Golden Days of Plastic Cards Over?
Co-branding a Mobile Phone?
Social Networking
Gen Y: the Sweet Spot for Social Network Co-branded Card Marketing
But Do Social Networkers Go On to Visit Financial Sites?
Co-branding and Social Networking
The Co-branding Advantage That Issuers Crave
Sizing the Future of Co-branding in the U.S.


Chapter 2: Market Size and Trends
Consumers’ Payment Preferences
Table 2-1: U.S. Consumer Payment Preferences, In-store Payment Mix, 2003-2008
Table 2-2: Consumer Payment Preferences, Internet Payment Vehicles, 2005 versus 2008
Credit and Debit Cards in Force Continue to Show a Saturated U.S. Market
Table 2-3: U.S. Credit and Debit Cards, Transactions and Terminals, 2003-2008
Card Usage Growth Tops 12% CAGR
Figure 2-1: U.S. Debit and Credit Card Transaction Volume, 2003-2007
Figure 2-2: U.S. Debit and Credit Card Transaction Value, 2003-2007
New Cards Increase and Dormant Cards Awake
More U.S. Consumers Using Plastic for Small Payments
Forces Driving Consumer Card and Co-branded Card Usage
Global Financial Crisis
U.S. Consumers Walloped
Contracting U.S. Consumer Credit
Figure 2-3: Outstanding Consumer Credit, 1990-Q1 2009
Table 2-4: Percentage Change in Outstanding Consumer Credit, 2006-July 2009
Bankruptcies and Credit Card Defaults and Delinquencies Rising Sharply
Figure 2-4: U.S. Non-Business Bankruptcy Filings, 2000-2009(F)
Figure 2-5: U.S. Credit Card Charge Offs and Delinquency Rates (All Banks), Q1 2000-Q1 2009
Card Issuers Winnow Their Portfolios, Cut Rewards, Homogenize Reward Programs
Lasting Impact on U.S. Consumer Spending and Charging?
Figure 2-6: U.S. Retail Sales Decline Sharply between Q1-2008 and Q1-2009
Consumers Switching from Credit to Debit Cards
Reward Programs a Major Co-branded Card Market Driver
Figure 2-7: U.S. Rewards-Based Credit Cards versus General Purpose Credit Cards Without Rewards, 2003 vs. 2007 vs. 2011(F)
Sizing the U.S. Co-Branded and Affinity Card Market
Consumer Ownership and Use of Co-branded and Affiliation Cards
One in Five U.S. Cardholders has an A/S Credit Card
Table 2-5: Consumer Ownership and Use of A/S Credit Cards by Type, Summer 2008
Figure 2-8: Trends in A/S Credit Card Ownership and Use, 2004-2008
Other Surveys
Packaged Facts Custom Survey Finds More than Half of Consumers Own Co-branded or Affinity Cards
Figure 2-9: Ownership of Partnership and Sponsor Cards, February 2009
Co-branded Cards in Force
Figure 2-10: Co-branded and Affinity Credit Cards Issued in the U.S., 2003-2008
Figure 2-11: Co-branded and Affinity Credit Card Transactions, 2003-2008
Affinity Card Programs on a Plateau Since 2007
In the Wallet, Yes. But Do Consumers Use Them?
Figure 2-12: What Kinds of Co-branded and Affinity Cards are Used Regularly?
Packaged Facts Survey: 29% of Consumers Keep a Co-branded or Affinity Card in the Front of their Wallets
Figure 2-13: Ownership and Use of Partnership and Sponsor Cards, February 2009
Proprietary Bank Rewards Programs versus Co-branded and Affinity Cards
Table 2-6: Edgar Dunn Study on Consumers’ Preferred Credit Cards, 2000 vs. 2004 vs. 2006


Chapter 3: Co-branding Around the World
International Payment Trends
Table 3-1: Use of Payment Instruments by Non-banks: Check and E-Payment Trends, 2003 vs. 2007
Table 3-2: Use of Payment Instruments by Non-banks: International Card Payment Trends, 2003 vs. 2007
Table 3-3: Trends in the Use of Payment Instruments by Non-banks, 2003 vs 2007
The Global Economy, Doldrums for Some, Crisis for Others
Table 3-4: World GDP and Private Consumption Growth, 2007-2011
Table 3-5: High Income Countries GDP and Private Consumption Growth, 2007-2011
Table 3-6: Euro Zone GDP and Private Consumption Growth, 2007-2011
Table 3-7: East Asia/Pacific Region GDP and Private Consumption Growth, 2007-2011
Table 3-8: South Asia Region GDP and Private Consumption Growth, 2007-2011
Table 3-9: Middle East and North Africa GDP and Private Consumption Growth, 2007-2011
Table 3-10: Latin America and the Caribbean GDP and Private Consumption Growth, 2007-2011
Europe Co-branding Market: “Hugely Different from the U.S.”
France: Visa and MasterCard Enter Co-branding in 2007
Europe’s Co-branding Central
Spain: Separation of Credit Lines
Turkey Takes a Multi-Partner Route
Scattered Activity Elsewhere in Europe
The Gulf: Co-branders Target “Distinguished” Customers
Latin America: Growing Middle Class Generates Issuer/Partner Interest
Mexico: Aggressive Growth Until the Crisis
Asia: A Patchwork Quilt
Olympics Serve as Springboard for Chinese Market
Hong Kong’s Bank of Communications Seeks Strategic Business Partnerships for Co-branding
India: A Growth Magnet for Co-branders
Multi-Function Smart Cards Drive Taiwan’s Market
Going Their Own Way


Chapter 4: Consumer Demographics & Psychographics
About the Experian Simmons Data
Statistically Accurate Cross-Section of the U.S. Population
Simmons Survey Data Presented for 12 Credit Card Categories
Experian Simmons Surveys Cardholders Attitude on Finances
Index System
About the Packaged Online Consumer Survey
Online Consumers Higher Users of Co-branded and Affinity Cards
Figure 4-1: Generational Patterns for Ownership of Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009 (by percentage and index)
A/S Credit Cardholders: First Wave Boomers Go for Travel Cards
Table 4-1: Demographic Characteristics Favoring Ownership of Affiliation/Sponsorship Cards, by Type, 2008 (index)
A/S Cardholders Tend to be Affluent
Table 4-2: Household Income Levels Favoring Ownership of Affiliation/Sponsorship Cards, 2008 (index)
Table 4-3: Household Income Levels Favoring Ownership and Use of Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009 (percent)
MasterCard Has Highest Percentage of Truly Affluent
Table 4-4: Key Household Income Levels for Affiliation/Sponsorship Cards by Brand, 2008 (percent and index)
A/S Cardholders Are Well Educated, Managers, Techies, Professionals or Self-Employed
Table 4-5: Education Characteristics Favoring Ownership of Affiliation/Sponsorship Cards, 2008 (index)
Table 4-6: Education Characteristics Favoring Ownership and Use of Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009 (percent)
Table 4-7: Employment Characteristics Favoring Ownership of Affiliation/Sponsorship Cards Overall and by Type, 2008 (index)
Northeastern and Pacific Homeowners Favor A/S Cards; the Southwest and Southeast Are Areas of Opportunity
Table 4-8: Regional and Homeownership Characteristics Favoring Ownership of Affiliation/Sponsorship Cards Overall and by Type, 2008/2009 (index)
Non-Hispanic Whites and Asians Favor A/S Cards; Blacks and Hispanics Are Underrepresented
Table 4-9: Racial/Ethnic Characteristics Favoring Ownership of Affiliation/Sponsorship Cards Overall and by Type, 2008 (index)
A/S Card Owners More Financially Secure and Financially Savvy than the Average Consumer
Table 4-10: Financial Attitudes of Affiliation/Sponsorship Cardholders, 2008 (index)
Travel versus Automobile versus Association Card Owners
Travel Card Users: Asian, Educated, White-Collar Professionals
Table 4-11: Demographic Characteristics Favoring Ownership of Airline/Hotel Cards, 2008 (index)
Reach Them Through the Financial Press
Table 4-12: Financial Attitudes of Affiliation/Sponsorship Cardholders Overall vs. Airline/Hotel Cardholders, 2008 (index)
Automobile Card Users: Older, Less Affluent, More Likely to Have Children
Table 4-13: Demographic Characteristics Favoring Ownership of Automotive Cards, 2008 (index)
Table 4-14: Financial Attitudes of Affiliation/Sponsorship Cardholders Overall vs. Automotive Cardholders, 2008 (index)
Association/Organization Card Users: Well Educated, Affluent Techies and Professionals
Table 4-15: Demographic Characteristics Favoring Ownership of Association/Organization Cards, 2008 (index)
Table 4-16: Financial Attitudes of Affiliation/Sponsorship Cardholders Overall vs. Association/Organization Cardholders, 2008 (index)
Factors and Attitudes Differentiating Amex, Discover, MasterCard and Visa Cardholders
A/S American Express Cardholders
Factors Differentiating A/S American Express Cardholders
Table 4-17: Demographic Characteristics Favoring Ownership of American Express Cards Overall vs. Affiliation/Sponsorship American Express Cards, 2008 (index)
Don’t Leave Home Without It
Table 4-18: Financial Attitudes of American Express Cardholders Overall vs. Affiliation/Sponsorship American Express Cardholders, 2008 (index and percent)
A/S Discover Cardholders
Table 4-19: Financial Attitudes of Discover Cardholders Overall vs. Affiliation/Sponsorship Discover Cardholders, 2008 (index and percent)
A/S MasterCard Owners
Table 4-20: Demographic Characteristics Favoring Ownership of MasterCards Overall vs. Affiliation/Sponsorship MasterCards, 2008 (index)
Table 4-21: Financial Attitudes of MasterCard Holders Overall vs. Affiliation/Sponsorship MasterCard Holders, 2008 (index and percent)
A/S Visa Cardholders
Table 4-22: Demographic Characteristics Favoring Ownership of Visa Cards Overall vs. Affiliation/Sponsorship Visa Cards, 2008 (index)
Table 4-23: Financial Attitudes of Visa Cardholders Overall vs. Visa Affiliation/Sponsorship Cardholders, 2008 (index and percent)


Chapter 5: The Competitive Arena: Brand Networks
Overview
A Note on Metrics
Credit Card Industry is Undergoing Major Changes
Payment Networks and Their Brands
Figure 5-1: Share of U.S. General Purpose Debit, Credit & Charge Card Purchase Volume, 2008 (percentage)
Figure 5-2: Share of U.S. General Purpose Credit & Charge Card Purchase Volume, 2008 (percentage)
Figure 5-3: Share of Global General Purpose Debit, Credit & Charge Card Purchase Volume, 2008 (percentage)
Figure 5-4: Share of Global General Purpose Credit & Charge Card Purchase Volume, 2008 (percentage)
Ownership and Use of Co-branded and Affinity Cards
Figure 5-5: Ownership of Network Branded Co-branded and Affinity Cards, 2009
Fewer Own Co-branded or Affinity Debit Cards
At Least Half of Each Network’s Card Holders Keep a Co-branded or Affinity Card Front of Wallet
Figure 5-6: Brand by Brand, Half of Co-branded and Affinity Cards Make It to the Front of the Wallet, 2009
Ownership and Usage of Co-branded and Affiliation Cards Brands
Table 5-1: Consumer Ownership and Use of A/S Credit Cards by Payment Network Brand and Type, 2008
American Express
Overview
Performance
Table 5-2: American Express Financials, for 2006 through Q1 2009
Table 5-3: American Express: Key Global Metrics for 2006 through Q1 2009
“Spend-Centric” Co-branding
Travel
Entertainment
Discover Financial Services
Corporate Vision—Competitive Differentiator
Overview
History
Since the Spinoff
Going Forward: Global Reach
Performance: Stop and Start Growth
Table 5-4: Discover Financials for 2006 through Q2 2009
Table 5-5: Discover: Key Metrics for 2006-2008
Co-branding: “It’s All About the Relationship”
Building Co-branding Relationships
Structuring to Manage Co-branded and Other Cards
Managing Partner Relationships
Value Beyond the Partner-Specific Reward
Creating Reward Programs that are Specific but Generic
Giving Consumers an “Edge” on Financial Literacy
Alignment of Opportunity
MasterCard Worldwide
Overview
History
MasterCard Starts 2009 with a Business Unit Realignment
Performance and Key Metrics
Table 5-6: MasterCard Financials, for 2006 through Q1 2009
Table 5-7: MasterCard Key Global Metrics for 2006 through Q1 2009
MasterCard’s Co-Branding Differentiators
Relationship Rewards Construct
Visa Inc.
History
Reorganization and Initial Public Offering
Performance
Table 5-8: Visa Financials, for 2006 through Q1 2009
Going (More) Global
Table 5-9: Visa Key Global Metrics 2008
Figure 5-7: Visa’s Regional Markets, 2008 (Share and Growth)
Visa’s Three-tiered Consumer Credit Platform
Thousands of Visa Co-branding Programs
Table 5-10: Visa’s Co-branded and Affinity Cards as of 2007
Visa’s Differentiators: Seamless Solutions
“What’s Really New and Different”
Brand Globally but Co-brand Locally
Building a More Holistic Relationship with the Retailer
In the U.S. Getting More Out of What They Have
In Europe
Getting the Partners on Your Side
For the next 2-5 years?


Chapter 6: The Competitive Arena: Banks and Non-Bank Issuers…………
Figure 6-1: Market Share of U.S. General Purpose Credit Card Issuers Ranked by Purchase Volume, 2008
Top Co-branded and Affinity Card Issuers
Bank of America
Overview
Acquisition Spree
Performance
Table 6-1: Bank of America: Card Services Credit Card Performance
“Incredibly Stiff Headwinds”
Table 6-2: Global Card Services: Q2 2009 Results
Table 6-3: Global Card Services: Key Statistics
Beyond the Card: The Birth of Affinity Banking
39% of Q2-2009 Deposits from Affinity Relationships
A Great Selling Machine
Figure 6-2: BofA’s Multi-Channel Marketing, 2007
Table 6-4: Affinity Program Success Stories
Figure 6-3: BofA Leverages Its Channel Diversity to Balance Growth and Profitability, 2008
JPMorgan Chase
Chase Card Services
Performance
Table 6-5: Card Services Performance
Numerous Affinity Organizations and Co-brand Partners
Table 6-6: Chase Obligations Under Affinity and Co-brand Programs
Co-branding is Serious Business at Chase
Co-brand Outperforms Chase’s Proprietary Programs
Figure 6-4: Chase Brand versus Co-brand/Affinity Performance
Concentrating on the Biggest Partnerships
Table 6-7: A Chase Affinity Card Sampler
Barclays PLC
Performance
Table 6-8: BarclayCard Performance, 2006-2008
Table 6-9: Key Facts about Barclaycard, 2008
Focus on Co-branding
Success in the U.S.
U.S.-U.K. Cross Fertilization
GE Consumer (né GE Money)
Expands Co-branded Card Portfolio
Performance: Shrinking Receivables—Rising Defaults
Table 6-10: GE Capital Consumer (formerly GE Money) Financials, for 2006 through Q1 2009
Table 6-11: GE Capital Consumer Delinquencies Q2 2008 versus Q1 & Q2 2009
From Pure Private Label to Co-branding Giant
Table 6-12: Dual Card Launches and Assets, 2003-2006
Table 6-13: Examples of GE’s Co-branded and Affinity Cards, 2009
GE’s Global Co-branding Reach
But GE Doesn’t Love its Credit Card Business
Capital One
Performance
Table 6-14: U.S. and International Card Performance, 2006-2009
As Other Issuers Pull Out of the Co-branding Arena, Capital One Sees Opportunity
Card Lab - Personalizing Plastic
Capital One Creates DIY Affinity Programs for Non Profits
How it works
USP for Smaller Non-Profits
Table 6-15: Capital One Co-branded Credit Cards
Smaller Financial Services Companies Enter the Co-branded and Affinity Card Space
Western Alliance Bankcorp Looks to Co-branded and Affinity Cards to Offset Real Estate Woes
UMB: The First Do-it-Yourselfer


Chapter 7: Marketing Dynamics
Decision Drivers and Information Sources
Co-branded Card Candidates Resonate with Direct from Partners and Sponsors
Table 7-1: Sources of Information Especially Important to Choosing Last Card for Co-branded or Affinity Card Owners versus Owners of Standard Cards
Table 7-2: Sources of Information Especially Important to Choosing Last Card for Consumers Who Use Co-branded or Affinity Card Most Frequently versus Standard Cards
Trust in Advertising: ’Round the World It’s Word of Mouth
Figure 7-1: Forms of advertising ranked by changes in levels of trust from April 2007 to April 2009
With All Those Carefully Crafted Benefits, What Really Matters to Co-branded and Affinity Card Users?
Table 7-3: Features That Drive Acquisition of Co-branded and Affinity Cards versus Standard Cards
Rewards and Discounts More Important for Acquisition and Frequent Use to Co-branded and Affinity Card Owners than to GPCC Owners
Table 7-4: Features That Drive Acquisition and Use of Co-branded and Affinity Cards versus Standard Cards for “Most Frequent” Users
Table 7-5: Considerations in the Acquisition and Use of Co-branded Retailer, Travel, Entertainment and Affinity Cards
Hanging on to the Old School Tie
Table 7-6: Students and Alumni Go for Organization and Affiliation Cards
. . .And Which Ones Don’t? Rewards Program Cost Cutters Want to Know
Where Do Marketers Spend Their Money
Direct Mail Offers Plunging
Figure 7-2: Direct Mail Credit Card Offers, Synovate versus Mintel, 2005-2007
Shift to Fee-based and Co-branded Cards
Spending on Measured Media Fell Off the Cliff in Q4-2008—It’s Still Falling
Figure 7-3: Measured Media Spending, 2007, 2008 and Q1 2009
Word of Mouth[watering] Marketing Spending Bucks the Trend
Print Media: Co-branded Card Holders Read the Financial Pages
Table 7-7: Card Holder Attitudes: I Read the Financial Pages of My Newspaper
Table 7-8: “I Find Ads for Financial Services Interesting”
Branches are Bastion of Card Promotion—the Buzz Word is CRM
Figure 7-4: Bank of America’s Card Sales Mix By Channel, 2004-2007
Communicating with the Consumer via the Internet
Online Advertising
Email Marketing: Boosting Co-branded Card Use
Emerging Email Marketing Paradigm
Viral Email Marketing
Segments, Segments, Segments
Small Business—Lots of Opportunity for Co-branders
Gen Y: Internet Lovers Who Embrace Co-branded and Affinity Cards
Boomers—Still Influential, But Saving More and Spending Less
Ethnic Marketing
Table 7-9: U.S. Population Projections: Share by Ethnic Group
Table 7-10: Penetration of Co-branded and Affinity Cards by Ethnic Group
Asians Embrace Co-branding
African Americans: Worldview Considerations
Hispanics Underserved - Try Mobile Outreach
Multi-racial Opportunities Loom
Figure 7-5: Growing Multi-Racial Population in the U.S


Chapter 8: Going Forward
Legal Challenges in the U.S. to the Credit Card Reform Act of 2009
Table 8-1: Key Provision of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009
Impact on Consumers and Issuers
Impact on Co-branding Partners
Chill Wind Blows on Overdraft Fees
Are Interchange Fees Next? Co-branding Partners Square Off Against Banks and Brand Networks
Across the Pond
Emerging Payment Products: A Structural Break
Contactless Cards
Smart Cards
Mobile Payments (mPayments): Are the Golden Days of Plastic Cards Over?
Co-branding a Mobile Phone?
Social Networking
Top Social Networking Sites
Table 8-2: Top Social Networking Sites
Gen Y: the Sweet Spot for Social Network Co-branded Card Marketing
Figure 8-1: Front-of-Wallet Use of Co-branded and Affinity Cards by Age Cohort
But Do Social Networkers Go On to Visit Financial Sites?
Table 8-3: Method of Gathering Information to Identify Choices for a Potential Purchase
Tweetterers Don’t Fly to Financial Services Sites Either
Women Turn to Blogs for Info, Advice, Recommendations
Co-branding and Social Networking
Whither Co-branding
The Need for Alternate Channels
Learning from Past Mistakes
U.S. Co-branding Programs: All Grown Up or Still Growing?
Segments: Growing and Emerging
Helping the “Bruised Consumer”
Rewards Programs: Issuers Cut Back as Beleaguered Consumers Increase Reliance
Table 8-4: U.K. Credit Card rewards in 2005, 2008 and 2009
Are Experiential Rewards Relevant in a Downturn?
The Tension Between Co-branded and Proprietary Bank Rewards Programs
The Co-branding Advantage That Issuers Crave
To Live Long and Prosper, Co-brand Partners Need to Be Actively Engaged in Their Programs
Sizing the Future of Co-branding in the U.S.
Figure 8-2: Rewards Cards vs. Standard Cards as a Percentage of Total Credit Cards, 2007-2012
Table 8-5: World Bank Estimates of U.S. GDP and Private Consumption 2007-2011
Figure 8-3: Co-branded & Affinity Card Forecast, Cards Outstanding (Total/Per Cardholder), 2007-2012
Figure 8-4: Co-branded & Affinity Card Forecast, Transaction Volume and Value, 2007-2012
Assessing the Game Changers

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