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Key trends for australian credit card customers 2011
 

Key trends for australian credit card customers 2011

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Datamonitor’s “Key Trends for Australian Credit Card Customers 2011” is now available at ReportsnReports.com.

Datamonitor’s “Key Trends for Australian Credit Card Customers 2011” is now available at ReportsnReports.com.

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    Key trends for australian credit card customers 2011 Key trends for australian credit card customers 2011 Document Transcript

    • Key Trends for Australian Credit Card Customers 2011IntroductionTraditional payment methods, which include cash and cheque, have experienced a steady decline overthe years for a simple reason: Australians are moving toward cards as their main way to pay.Understanding the latest needs of Australian credit card customers is becoming more relavent for cardissuers due to the increasing pressure on both demand and competition in this sector.Features and benefits Use these insights into the behaviour of Australian credit card customer Market across four product lifecycles to shape your acquisition strategy. Identify new opportunities by uncovering different consumer attitudes toward credit cards across different consumer profiles. Achieve a high customer retention rate by understanding key switching factors for credit card consumers. Formulate strategies to attract specific consumer segments by uncovering the opportunities available across different consumer profiles.HighlightsThe Australian credit card market is moving into a "customers buying" stage from a "providers selling"one. More than ever, Australian consumers are actively engaged with the research process when theyare in the market for a new credit card. Indeed, four out of five new credit card customers in the last12 months researched their product options.Australian consumers have also become increasingly aware of new ways to pay, such as contactlesspayments. The number of contactless payment users has doubled in the last 12 months – a significantmilestone for both the industry and Australian customers – but there remain barriers from both theinfrastructure and consumer perspectives.Card issuers need to consider some premium card features to provide additional value for consumers,as an incentive for them to weight some benefits against the additional extra costs that may beincurred from credit card transactions, such as a surcharge fee.Table Of ContentsOVERVIEWCatalystSummary
    • EXECUTIVE SUMMARYUnderstanding Australian credit card customersThe use of cash among Australian consumers is declining across all merchant segmentsDatamonitor profiles the credit card customer at two levels: usage and acquisitionAustralian credit card customers are mainly moderate transactorsEvaluating the first phase of the consumer lifecycle: researchThe behavior shift: Australian consumers are researching their new card options more actively thanbeforeThe loyalty shift: Australian credit card consumers are looking beyond their bankThis is a "consumers find product information" era rather than an "FS providers feed the information"oneEvaluating the second phase of the consumer lifecycle: applyThe channel shift: the inevitable shift toward onlineEvaluating the third phase of the consumer lifecycle: useCredit cards show consistent usage across different spending categoriesTrust and price are key to increasing the adoption of contactless paymentsEvaluating the fourth phase of the consumer lifecycle: switchSwitching customers: price factors remain the drivers to switchingService is the number one factor in customer retention, not priceSwitchers represent a bigger business case than new entrants, but with an extra challengeINTRODUCTION TO THE AUSTRALIAN CREDIT CARD CUSTOMERThe use of cash as the primary payment tool is decliningCredit and charge cards overtook cash as Australian consumers primary payment tool in 2011Datamonitor profiles credit card customers at two levels: usage and acquisitionThe first customer level examined is based on how consumers use their cardsThe second distinction is between those who are new to credit cards and those who are switchingDebt, fraud, and fees: three issues to win those consumers without a credit cardMapping Australian credit card customersAustralian credit card customers are mainly moderate transactorsConsumer insight: the four stages of the product lifecycleEVALUATING THE FIRST PHASE OF THE CONSUMER LIFECYCLE: RESEARCHThe behavior shift: Australian consumers are more actively researching their new card options thanbeforeFour out of five new credit card customers in the last 12 months researched their product optionsSources of information: digital channels dominate growth, but face-to-face is still dominantThe loyalty shift: Australian credit card consumers are looking beyond their bankInterest rates and fees are becoming important factors in product choiceThe role of price comparison sites should not be ignoredThis is a "consumers find product information" era rather than "FS providers feed the information" oneNew credit card customers pay more attention to online PCSs than direct mail marketingEVALUATING THE SECOND PHASE OF THE CONSUMER LIFECYCLE: APPLYThe channel shift: the inevitable shift toward onlineNew credit card customers choose the Internet as their preferred application channel
    • However, contrary to this, most people still applied for a new credit card in branchAdding a personal touch to the online application process would address some major issuesConsumers need assurances when using the online channelNABs balance transfer calculator: do not assume consumers know their productsEVALUATING THE THIRD PHASE OF THE CONSUMER LIFECYCLE: USECredit cards are the dominant card product among Australian customersThe majority of Australians hold more than one type of payment cardAustralians put a higher priority on credit cards than other cardsTrust and price are key to increasing the adoption of contactless paymentsThe number of contactless payment users has doubled in the last 12 monthsGenerational change will continue to drive the future adoption of contactless paymentsCredit card surcharges are a diversion toward other payment optionsDual cards only target a small segment of Australian consumersThe benefits of a dual card feature are still questioned by some customersRewards have fueled the shift toward American Express cardsCustomers aged 25–34 are the prime target for dual cardsEVALUATING THE FOURTH PHASE OF THE CONSUMER LIFECYCLE: SWITCHSwitching customers: price factors remain the main drivers to switchingThe credit card switching rate has increased in the last 12 monthsFrequent card users are more likely to switch than othersService is the number one factor in terms of customer retention, not priceService is an important retention factor for card issuersTargeting Australian credit card customers: listening to what consumers wantSwitchers represent a bigger business case than new entrants, but with an extra challengeMarket gap analysis: what consumers have is not necessarily what consumers wantAPPENDIXSupplementary dataMethodologyFurther readingAsk the analystDisclaimerLIST OF TABLESTable: The primary payment option for Australian consumers, 2009–11Table: Proportion of credit card customers by profile and the length of time with their main credit cardproviderTable: Which of the following payment methods do you most commonly use for each of theseproduct/service categories?Table: Australian consumers attitudes toward contactless payments, 2010–11Table: What consumers have versus what consumers want – revolversTable: What consumers have versus what consumers want – moderate transactorsTable: What consumers have versus what consumers want – high transactors
    • LIST OF FIGURESFigure: Australian credit card customers mapFigure: Credit cards are used across a wide range of spending categoriesFigure: Credit and charge cards overtook cash as the primary payment tool for Australian consumers in2011Figure: The use of cash among Australian consumers is declining across all merchant segments (2009–11)Figure: Datamonitor credit card profilesFigure: First-time credit card customers dominated credit card acquisitions in the last 12 monthsFigure: Debt avoidance is one of the main factors for not having a credit cardFigure: Australian credit card customers mapFigure: The four stages of the product lifecycleFigure: Digital channels dominate growth, but face-to-face still dominantFigure: The usage of branch staff as a source of information for new credit cards is decliningFigure: Most forms of digital content have grown significantly as a source of informationFigure: More people are looking beyond their existing bank for a new credit cardFigure: Annual fees and interest rates are currently the most important product features forconsumersFigure: Depending on how they plan to use it, consumers have different requirements for their nextcredit cardFigure: Online PCSs play a greater role than direct mail marketingFigure: The Internet is the preferred application channel for new credit card customersFigure: There remain big gaps between how consumers apply for their cards and how they would liketo apply for them, potentially costing some issuers a lot of businessFigure: The inability to discuss product options is the biggest barrier to consumers applying forproducts through the online channelFigure: NABs balance transfer calculator provides simple but insightful information for potentialcustomersFigure: The majority of Australians hold more than one type of payment cardFigure: Credit card is the main card payment method among Australian consumersFigure: Credit cards are used across a wide range of spending categoriesFigure: In 2011, 9.1% of cardholders use contactless cardsFigure: The adoption of new technologies has a strong correlation to the adoption of contactlesspaymentsFigure: A growing proportion of consumers are resistant to the idea of getting a contactless cardFigure: Age has a positive correlation with the use of cash for payments below $10Figure: Most consumers look for alternative payment options when there is a surchargeFigure: Those customers who transact heavily are the most open to paying credit card surchargesFigure: While the majority of consumers who are aware that they have a dual card make use of it, ahigh proportion still do not use both cardsFigure: High transactors are most likely to use a dual card productFigure: Credit card customers are less likely to leave their main credit card providers than transactionand savings accountFigure: Moderate and high transactors are the groups most likely to switch to a new credit cardFigure: Good customer service and low annual fees are key to customer retentionFigure: A large proportion of new entrants are low transactors
    • Figure: Card costs drive product selection for revolversFigure: Moderate transactors see free insurance as an important feature for their new credit cardFigure: There is a strong demand for cash back program among high transactorsAbout Us:ReportsnReports is an online library of over 100,000+ market research reports and in-depth marketresearch studies & analysis of over 5000 micro markets. We provide 24/7 online and offline support toour customers. Get in touch with us for your needs of market research reports.Follow us on Twitter: http://twitter.com/marketsreportsContact:Mr.Priyank7557 Rambler road,Suite727,Dallas,TX75231Tel: + 1 888 391 5441E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comVisit our Market Research Blog