Consumer Attitudes to Credit Card Cobranding PanEuropean Report

1
Consumer Attitudes to Credit Card
Co-brandingPan-European Report
September 2006
Prepared for
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Table of Contents
Objectives of the research
3 Methodology 4 Key research findings
5 Interest in co-branded cards 7 Benefits
and rewards 14 Enhanced or personalised
credit cards 27 Knowledge of current credit
card benefits 31 Demographics 34

3
Objectives of the research

• To explore how customers preferences for
  different card providers are influenced by the
  rewards they provide

4
Methodology

• Telephone survey of 1404 credit card holders in
  7 European countries
• GB (n200)
• Fra (n200)
• Deu (n201)
• Ita (n202)
• Esp (n200)
• Pol (n201)
• Rus (n200)
• Fieldwork was conducted from July 27th August
  10th 2006
• The overall margin of error for the entire study
  of 1404 interviews is plus or minus three
  percentage points at the 95 confidence level.
  The overall margin of error for national samples
  of 200 is /- seven percentage points
• Please note some totals do not add up to 100
  due to rounding or because dont know answers
  are not shown
• The data was analysed to find differences by
  country age gender and frequency of travel

5
Key research findings

• Current card portfolio
• Around one in seven (15) credit cardholders have
  a co-branded credit card.
• Co-branded cards are currently most prevalent in
  the UK and least prevalent in Russia.
• Interest in co-branded cards
• Two in three (65) credit cardholders are
  interested in a credit card that offers a
  discount on the purchase they are making at the
  time.
• Over half are interested in a credit card that
  offers cash back at the end of the year (57) or
  a contribution to charity (56).
• Six in ten (59) credit cardholders say they
  would use their credit card more frequently than
  their standard credit card if it offered a
  discount on the purchase being made at the time.
• Younger cardholders are the most likely to say
  they are interested and would use co-branded
  cards more frequently than their current payment
  cards.

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Key research findings

• Benefits and rewards
• Credit cardholders are more likely to want to
  benefit personally from a co-branded cards
  rewards (48) rather than the benefit going to a
  charity (25) family and friends (20) or a
  professional organisation (2).
• A discounted city break is the favourite reward
  for credit cardholders with one in three (33)
  credit cardholders wanting to be rewarded in this
  way .
• Around one in four would like to be rewarded by
  cinema concert or theatre tickets (26) a free
  spa day (25) or a house or garden makeover
  (24).
• Credit cardholders would most like their
  co-branded card to be in the supermarket sector
  (41) with the next most popular sectors being
  petrol (31) and charity (30).
• Six in ten (59) would be interested in a credit
  card that offered flexible benefits. One in five
  (20) would be very interested.
• What your card says about you
• One in three would be attracted to a card that
  reflects spending power (34) or is partnered
  with a strong retail brand that reflects their
  personal interests (32).
• One in four (26) would be attracted to a card
  they could design themselves.
• Knowledge of current credit card benefits
• Less than half (44) of co-branded credit
  cardholders feel they know a lot about the
  benefits their card offers. Three in ten (30)
  admit to knowing little or nothing.

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Interest in co-branded cards
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Two in three (65) credit cardholders are
interested in a credit card that offers a
discount on the purchase being made at the time
Q2. How likely would you be to want a credit card
if it offered the following benefits each time
you used it For each please tell me if you
would be very likely somewhat likely or not
likely to choose to own it. Base All credit card
holders (N1400)
TOTAL LIKELY 65 57 56 40
Already have 5 5 3 8
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Interest in benefits and rewards analysis by
country

• Poles are the most likely to be interested in
  benefits of any type they show higher degrees
  of interest than any other nation for all types
  except charity cards.
• Spaniards are the most likely to be interested in
  an affinity card (67).

Q2. How likely would you be to want a credit card
if it offered the following benefits each time
you used it For each please tell me if you
would be very likely somewhat likely or not
likely to choose to own it.
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Interest in benefits and rewards other analysis

• Age
• All types of co-branded credit cards are more
  attractive to younger credit cardholders
  specifically
• Credit cardholders aged 18-24 (77) are more
  likely than older cardholders (53) to be
  interested in a card that makes a contribution to
  charity.
• Credit cardholders aged under 45 (67) are more
  likely than cardholders aged 45 and over (47) to
  be interested in a card that gives cash back at
  the end of the year.
• Credit cardholders aged 18-24 (63) are the most
  interested in a card that earns points or air
  miles. Fewer 35-44s (38) are interested and even
  fewer over 65s (20).
• Credit cardholders aged under 54 (72) are more
  interested in a card that gives a discount on the
  purchase that is being made at the time than
  those aged 55 and over (53).

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Six in ten (59) credit cardholders say they
would use a credit card more frequently if it
offered a discount on the purchase being made at
the time

• Reasons for using credit card less
• Core of people not interested for a range of
  reasons
• Still would prefer to use standard / main card

12
Relative frequency of use of co-branded credit
cards analysis by country

• Poles (65) are the most likely to use a credit
  card more frequently that offered a discount on
  the purchase being made at the time.
• French and Poles are the most likely to use a
  card more frequently that offered cash back at
  the end of the year (59 each) or points or air
  miles (44 France 45 Poland).

Q3. Thinking about these credit cards again if
you owned cards that offered the following
benefits would you use it more or less
frequently than your standard credit card
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Frequency would use cards with benefits/rewards
other analysis

• Age
• Similarly younger credit cardholders are more
  likely to say they would use different types of
  co-branded reward-giving credit cards more often
  than the cards they currently have
• Credit cardholders aged 18-24 (61) are the most
  likely to say they would use a charity card more
  frequently than their current cards. Fewer
  35-44s (44) say they would use a charity card
  more frequently with over 65s (27) even less so.
• Credit cardholders aged under 45 (63) are more
  likely than card holders aged 45 and over (43)
  to say they would use a card that gives cash-back
  at the end of the year more frequently than their
  current cards.
• Credit cardholders aged 18-24 (55) are the most
  likely to say they would use a card that earns
  points or air miles more frequently than their
  current cards. Fewer 35-44s (42) say they would
  use this type of card more frequently with over
  65s (18) even less so.
• Credit cardholders aged 18-24 (77) are the most
  likely to say they would use a card that gives a
  discount on the purchase that is being made at
  the time more frequently than their current
  cards. Fewer 35-44s (64) say they would use
  this type of card more frequently with over 65s
  (41) even less so.
• Frequency of travel
• Credit cardholders that travel at least once a
  month (45) are slightly more likely than other
  cardholders (34) to say they would use a card
  that earns points or air miles more frequently
  than their current cards. (Note that this is the
  most prevalent but least popular benefit overall.)

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Benefits and rewards
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Half (48) would as a first choice prefer that
card rewards benefit themselves one in four
(25) would most like the rewards to go to
charity
The most common rank order is self
friends/family charity sports club or
professional organisation and other.
Q4. When thinking about the benefits or rewards
that a payment card may have which of the
following people or organizations would you most
like to benefit every time that you use that
card Base All credit card holders (N1400)
Dont know 11 12 13 27 83
1st 2nd 3rd 4th 5th
When respondents were prompted what the Other
beneficiary would be a host of charity names
were mentioned
Some participants did not make use of all five
choices and their dont know responses are
shown on the right
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Preference of beneficiary analysis by country

• Brits (31) are the most likely to most want a
  charity to benefit from payment card rewards.
• Italians (29) are the most likely to want their
  friends or family to benefit.

Q4. When thinking about the benefits or rewards
that a payment card may have which of the
following people or organizations would you most
like to benefit every time that you use that card
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Preference of beneficiary other analysis

• Age
• Credit cardholders aged under 45 (55) are more
  likely than those aged 45 and over (42) to pick
  themselves as first choice for benefiting when
  they use their card.
• Credit cardholders aged over 45 (29) are
  slightly more likely than those aged under 45
  (20) to say they would most want a charity or
  environmental organization to benefit when they
  use their card.

Note this group less likely than younger
cardholders to want a new co-branded card in the
first place (even cards offering contributions to
charity).
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One in three (33) credit cardholders would like
to be rewarded by a discounted city break
Q5. If you could receive rewards from your credit
card in any of the following areas which two
would you choose Base All credit card holders
(N1404)
One in four
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Preferred rewards analysis by country

• Italians are the most likely to want to be
  rewarded by a discounted city break (41) or day
  of pampering at a spa (34).
• Germans (35) are the most likely to want a house
  or garden makeover.
• French (34) are the most likely to want free
  tickets to the cinema theatre or concerts.
• Brits (23) are the most likely to want free
  tickets to major sporting events.

Q5. If you could receive rewards from your credit
card in any of the following areas which two
would you choose
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Preferred rewards other analysis

• Age
• Credit cardholders aged 55-64 (17) are more
  likely than other age groups (8) to want rewards
  in gastronomic and wine based offers.
• Credit cardholders aged 25-44 (32) are more
  likely than other age groups (17) to want to be
  rewarded by a family day out at a theme park.
• Gender
• Women (32) are more likely than men (18) to
  want to be rewarded by a day of pampering at a
  spa.
• Women (28) are slightly more likely than men
  (20) to want to be rewarded by a special house
  or garden makeover.
• Men (30) are slightly more likely than women
  (23) to want to be rewarded by free tickets to
  the cinema theatre and concerts.
• Men (22) are slightly more likely than women
  (10) to want to be rewarded by free tickets to
  major sporting events.
• Frequency of travel
• Credit cardholders who travel at least once a
  month (24) are slightly more likely than other
  cardholders (15) to want to be rewarded by free
  tickets to major sporting events.

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Supermarkets (41) are the commercial sector of
choice for a co-branded credit card partnership
followed by petrol (31) and charity (30)
Q8. If you were to choose a co-branded credit
card which of the following commercial sectors
would you most like to choose Base All credit
card holders (N1404)
Four in ten
Three in ten
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Preferred commercial sectors analysis by country

• Italians (33) are the most likely to want a
  co-branded card in the travel agencies sector.
• Germans are the most likely to want a card in the
  fashion (32) or automotive (27) sectors.
• French are the most likely to want a card in the
  supermarkets (53) or petrol (41) sectors.

Q8. If you were to choose a co-branded credit
card which of the following commercial sectors
would you most like to choose
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Preferred commercial sectors other analysis

• Age
• Credit cardholders aged 18-24 (38) are more
  likely than older age groups (25-44s 25 45
  and over 18) to want a co-branded card in the
  fashion sector.
• Credit cardholders aged 18-24 (26) are more
  likely than older age groups (25-44s 18 45
  and over 12) to want a co-branded card in the
  automotive sector.
• Credit cardholders aged 35-44 (49) are more
  likely than other age groups (39) to want a
  co-branded card in the supermarkets sector.
• Gender
• Women (30) are more likely than men (17) to
  want a co-branded card in the fashion sector.
• Men (22) are more likely than women (11) to
  want a co-branded card in the sports sector.
• Frequency of travel
• Credit cardholders who travel at least once a
  month (24) are slightly more likely than other
  cardholders (16) to want a co-branded card in
  the hotel sector.
• Credit cardholders who travel at least once a
  month (28) are slightly more likely than other
  cardholders (19) to want a co-branded card in
  the airlines sector.

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Six in ten (59) credit cardholders would be
interested in a card that offers flexible
benefits and one in five (20) would be very
interested
Q9. How interested would you be in a credit card
that offered you flexible benefits where you can
change the way you use the points you earn as
often as you like Base All credit card holders
(N1404)
59
25
Interest in flexible benefits analysis by
country

• The Poles are the most likely to be at least
  somewhat interested in a credit card that offers
  flexible benefits (73) with three in ten (29)
  very interested.

Q9. How interested would you be in a credit card
that offered you flexible benefits where you can
change the way you use the points you earn as
often as you like
26
Interest in flexible benefits other analysis

• Age
• Credit cardholders aged under 45 (70) are more
  likely than those aged 45 and over (48) to be
  interested in a credit card that offered flexible
  benefits.
• Frequency of travel
• Credit cardholders who travel at least once a
  month (73) are more likely than other
  cardholders (58) to be interested in a credit
  card that offered flexible benefits.

27
Enhanced or personalised credit cards
28
Three in four (73) are attracted to a card that
offers rewards one in three would be attracted
to a card that reflects spending power (34) or
is partnered with a strong retail brand (32)
Q6. To what extent do you think you would be
attracted to having a credit card that had the
following features Base All credit card holders
(N1404)
29
Attractiveness in card design analysis by
country

• The French (83) are the most attracted to a card
  that offers rewards.
• Italians (55) are the most attracted to a card
  that reflects a lot of spending power or
  prestige.
• Poles (37) are the most interested in a card
  with an attractive design.

Q6. To what extent do you think you would be
attracted to having a credit card that had the
following features
30
Card features other analysis

• Age
• Younger credit cardholders are more likely to say
  they are attracted to credit cards that have the
  following features
• Credit cardholders aged 18-24 (48) are much more
  likely than older age groups (21) to be
  attracted to a credit card that has an attractive
  design on the card.
• Credit cardholders aged 18-24 (48) are much more
  likely than older age groups (25-54s 27 55
  and over 16) to be attracted to a credit card
  that you can design yourself.
• Credit cardholders aged 18-24 (54) are much more
  likely than older age groups (28) to be
  attracted to a credit card that is partnered with
  a strong retail brand that reflects your personal
  interests.
• Credit cardholders aged 18-24 (54) are much more
  likely than older age groups (31) to be
  attracted to a credit card that reflects a lot of
  spending power and prestige.
• Credit cardholders aged 18-24 (89) are much more
  likely than older age groups (25-64s 77 65
  and over 49) to be attracted to a credit card
  that offers rewards.
• Frequency of travel
• Credit cardholders who travel at least once a
  month (33) are slightly more likely than other
  cardholders (23) to be attracted to a credit
  card that has an attractive design.

31
Knowledge of current credit card benefits
32
Less than half (44) of co-branded cardholders
feel they know a lot about the benefits their
card offers three in ten (30) admit knowing
little or nothing
Q10. How much do you know about the benefits or
rewards your current credit card offers Base
Holders of a co-branded card (N207)
30
33
Knowledge of current credit card benefits and
rewards analysis by country

• British and French credit cardholders seem to be
  the most knowledgeable about their co-branded
  cards with over half (France 56 GB 55) saying
  they know a lot about the benefits they offer.
• Italians are the least knowledgeable with only
  one in four (24) knowing a lot.

Q10. How much do you know about the benefits or
rewards your current credit card offers
34
Demographics
35
One in ten credit cardholders travel at least
once a month
D2. How often do you travel long distances either
within your own country or to places
abroad Base All credit card holders (N1404)
10
36
Frequency of travelling long distances analysis
by country

• Brits (17) and Poles (15) are the most likely
  to be frequent travellers.
• French cardholders (4) are the least likely to
  be frequent travellers.

D2. How often do you travel long distances either
within your own country or to places abroad
37
Age and gender
38
Consumer Attitudes to Credit Card
Co-brandingPan-European Report
September 2006
Prepared for