I am sure your airline has a cobranded card, and you may even have a large number of customers who use their card regularly. But, are you sure your card is working as hard for you as it should and that it is bringing in as much revenue as it possibly can? If you are not 100% sure about the performance of your card being optimized, take a look at these four reasons it is important to continuously evaluate your program.
* Product Offering: Is your product competitive in today’s marketplace? Where are your redemption levels in comparison to other airlines? There is a need to actively monitor your consumer value proposition to ensure you are maintaining a competitive edge in the marketplace.
* Program Performance: Have you considered having a third party evaluate your card portfolio? Does your issuer tell you the program is doing well, but do you have any way of really knowing? Having a third party consultant evaluate your program performance comparing it to other like programs can provide significant insight. You may find that your breakage is too high, and declines are above average. Do you know if your issuer is running reactivation campaigns for in-active card holders?
* Communication Tool: One of the primary reasons a partner launches a co-branded credit card program is to use it as a communication tool. In essence, the customers that take out the card are your best customers and they are raising their hand to say so. Are you actively communicating with these members? This is a great marketing channel and one that you should not be ignored.
* Issuer Contract: As you near contract expiration, even if you intend to stay with your provider, you should always benchmark contract terms. This can be done either by an open competitive process or through the services of a third party provider. A good consultant is actively working in the marketplace and understands what is currently competitive. They can help you to renegotiate your contract terms exclusively with your current provider if that is the direction you want to move in.
Whether your primary objective for your card program is to drive revenue from the partnership, increase customer loyalty or perhaps its to learn more about your customers. One thing is certain, actively managing your card program will ensure that you are maximizing its performance and reaching these objectives.