Credit Card Reward Programs Can Drive Satisfaction, But Only If Customers Are Aware Of Them

(194 KB)

Share This Page

Bendigo Bank Ranks Highest in Inaugural Australia Credit Card Satisfaction Study

Melbourne: 18 June 2015 — Bendigo Bank ranks highest in credit card customer satisfaction, according to the inaugural J.D. Power Asia Pacific 2015 Australia Credit Card Satisfaction StudySM released today.

The study measures customer satisfaction with credit cards by examining six key factors: customer interaction; credit card terms; billing and payment; rewards; benefits and services; and problem resolution.

Bendigo Bank achieves an overall satisfaction score of 745 (on a 1,000-point scale) and performs particularly well in three of the six key factors, most notably in customer interaction. Bankwest ranks second with a score of 739 and American Express ranks third with 731.

According to the study, customer awareness of earning and redeeming rewards with their credit card is low, as only 44 percent of customers say they “completely” understand how to earn rewards and only 56 percent indicate they understand how to redeem their points. Moreover, despite some credit card issuers providing numerous benefits and services attached to their products, only 49 percent of customers are aware of the benefits associated with their credit card.

Among customers who are aware of their card’s benefits, overall satisfaction with the card issuer averages 728 index points, which is 44 points higher than among those who are not aware of benefits.

“Many customers who use rewards programs in Australia are not familiar with how to use their programs fully or may not understand what benefits are attached to their cards,” said Loi Truong, senior country manager at J.D. Power Asia Pacific. “Card issuers can increase customer engagement and satisfaction by clearly outlining the benefits of their products. In addition, card issuers that provide a wider range of benefits that meet their cardholder needs not only make their products more relevant, but can also increase overall satisfaction.”

The study shows that customers who find their card rewards program attractive spend an average $799 more per month on their card than customers not enticed by the card’s reward program. Customers who can recall between one and three card benefits spend $480 per month more than those who can’t recall any benefit or service.

KEY FINDINGS

  • The study finds that 22 percent of customers use their mobile device for at least one of 10 common card-related activities—such as to review account information, make payments or review rewards on their accounts—with the highest mobile usage among Gen Y[1] customers at 37 percent. 
  • Customers whose card issuer ensure that their credit limit matches expectations are more likely to be advocates for their issuer, as 20 percent of customers who indicate their credit limit is “about right” say they “definitely would” recommend their card to family and friends, compared with only 12 percent among those who indicate their limit is “too high.”
  • Only 27 percent of customers fully understand the credit card terms on their account.
  • Slightly more than one-tenth (13%) of customers indicate having experienced a problem with their card during the past 12 months. Typical issues reported concern fees and fraud-related queries.
  • Overall satisfaction is higher among customers who contact their credit card issuer and engage in a live conversation with a representative from their card issuer (761) vs. those who communicate via webchat or email (745).

The 2015 Australia Credit Card Satisfaction Study is based on responses from 3,368 credit card customers. The study was fielded between April and May 2015 in Australia.

About J.D. Power Asia Pacific

J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at asean-oceania.jdpower.com.

About McGraw Hill Financial www.mhfi.com

Media Relations Contacts

XingTi Liu; J.D. Power Asia Pacific; Singapore; Phone +65-67338980; xingti_liu@jdpower.com.sg

John Tews; J.D. Power; Troy, Michigan, USA; 001-248-680-6218; john.tews@jdpa.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power. www.jdpower.com



[1] J.D. Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1979); Gen Y (1980-1994); Gen Z (born after 1995).

Media Contacts

Troy, Michigan
(248) 680-6218