If you're trying to stay competitive in the consumer credit card space, here are few credit card promotion ideas you can implement today to boost card placement.
Indirect On-boarding Credit Card Promotion
Indirect Members and Customers
Ah, the illusive indirect contact. "Rate Shoppers" that seem impossible to form a real relationship with. Interestingly, rate shoppers are ideal candidates for credit cards. All you have to do is beat their current deal and they will switch! After all, isn't that how you acquired them in the first place?
While you still have their credit report hot off the press, approve them for your credit card and make the offer. Notice I didn't say "pre-approve", or "pre-qualify". Simply approve them. If you've just approved them for a multi-thousand dollar auto loan there shouldn't be any reason why you would approve them for a card with a $1,000, $2,000, or even a $2,500 limit.
Reach out, via email or phone, and let them know they're already approved. All they have to do is say yes and the card will be in the mail. If they'd like a higher credit line, send them through underwriting for a quick turn around.
The same strategy can be applied to anybody who has joined your institution for a loan where you already have their credit report on file.
OK, so your card doesn't offer fancy rewards and points. Where do you go from here?
Create a 'Use Them' campaign.
This is different than your typical balance transfer campaign because you'll actuallyencourage people to use those rewards and points cards and then transfer the balance to your lower rate card with no balance transfer fees. Illustrate how that's a financially savvy money management technique, making them feel smart for their decision and letting them know you understand them and will advocate for their success in the ways they choose to manage their money.
Highlight how they can take advantage of points and rewards and still pay off debt responsibly. Then, enroll them in an educational on-boarding workflow that includes articles and guides explaining debt-to-income factors and what over-extended lines of credit do to their credit score so they manage their cards well.
And, you have the added benefit of costing your competitors money! Which brings another meaning to the term "Use Them" in this campaign [evil laugh here]. Let your competitors pay out all that money in cash back and rewards while you collect all the income on your lower rate interest card! Now who's laughing all the way to the bank? #badpuns
Have Credit Card Rewards and Points? Use FOMO to Boost Conversions!
In a 2019 session at The Financial Brand Forum several tips for more effective marketing tactics were shared. Among them was the fact that people will work harder to not lose something than they will to gain it.
That's why the fear of missing out (FOMO) is such a powerful motivator.
If you have a rewards/points program for your credit card, you'll need to point out to people what they're missing out on to inspire them to take action. Notifying them that last quarter they missed out on X dollars or points by not having your card will be more of a motivator than trying to coerce them into adding another rewards card to their wallet by promoting its features.
If you don't have an exact number for the individual, talk about the average rewards earned by others for the last quarter and emphasize that they're missing out on the action!
Credit Card Promotions Won't Work With Barriers To Entry
No matter which promotion you're running, if applying for your card is an overly lengthy or cumbersome process you'll have limited success. You must remove any unnecessary barriers in the application and approval process.
Your competitors are approving credit cards in seconds from every device type. This is the experience consumers are looking for, and you should be striving to deliver.
12 Decisive Steps to Grow Your Institution
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