December 5,2006
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How Do Your Rewards Stack Up?
Right now, credit cards are lavishing rewards on their customers – offering them a choice of various programs and upping the ante on the value of the rewards offered. This comes in response to the (unsurprising) news that customers are actually paying attention to "what's in it for them" by using their credit card. Surveys show that customers will make decisions about what cards to apply for, as well as which cards they hold to use for what purchase, based on what rewards they stand to gain.
Part of the strategy for increasing a reward card's profile is not only offering a desirable reward, but making it accessible to the consumer. This includes making reward redemption information easy to understand and not complicating the process with too many arcane rules and administrative hoops. Consumers spoke, and the card companies listened – the savvy card holder doesn't feel that they should exert too much effort in using their rewards. Hence, ad spots like Capital One's "No Hassle Rewards." The credit card reward industry is super-competitive right now, and card companies have realized that they need to heed the voice of the consumer if they want to stay on top of the game.