GE Capital Retail Finance’s Branded Credit Shopper Research Finds Card Programs Reduce Customer Attrition by 72%
Retailers spend a considerable portion of their budgets attracting and
retaining customers. A retailer-branded credit card program is a
critical growth strategy that can significantly increase customer
loyalty, satisfaction, traffic and sales for a retailer, according to
recent analyses sponsored by GE Capital’s Retail Finance business, the
consumer lending unit of General Electric Company (NYSE: GE).
The GE Capital Retail Finance Retailer-branded Credit Program Study was
conducted over a two-year period and encompassed internal and external
data from five major retail chains of various sizes across three main
segments, including specialty, big box and online. The analysis examined
share of wallet and the shopping habits of thousands of consumers
nationwide, using a retailer-branded credit card, as well as those
customers using other payment methods, through data analysis and case
studies.
“The study confirms that retailer-branded credit programs favorably
influence share of wallet, as well as sales, loyalty, attrition, and
satisfaction,” said Toni White, chief marketing officer of GE Capital’s
Retail Finance business. “Retailers that understand their customers,
better engage and retain them. This information provides a clearer
picture of the value of credit and the impact of retailer-branded credit
programs on growing incremental sales and building long-term customer
loyalty.”
Among the findings, retail credit customers:
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Make more frequent store visits, increasing from 1.4 per month to 1.7
per month for nearly four extra trips per year. The higher traffic
continues through normal retail and seasonal cycles, and translates
into a 29% overall boost in store visits.
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Increase incremental retail sales between 39-86% than customers who
pay with other methods.
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Result in greater lifetime value, as retail credit cardholders stay
more engaged, and are 72% less likely to attrite or leave the
retailer. After the larger initial purchase, customer transactions may
return to the average ticket amounts observed before the acquisition
of a store card (i.e., approximately $55 basket size, on average);
however, increased foot traffic and sustained card usage drive retail
sales, as store cards may provide compelling value propositions in the
form of exclusive cardholder benefits and discounts and point programs.
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Save the retailer about 2% to 4% in interchange fees on every
transaction processed on their store cards, contributing to greater
profitability.
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Provide 100% traceable sales and a mechanism for retailers to capture
information on high-ticket and special purchases and generate repeat
store visits through enhanced, value-added card benefits.
“These insights can help retailers of any size build better businesses
and strong credit programs, as well as more effectively direct their
marketing efforts and budgets,” adds White. “Retailers can use data from
branded payment options to build a unique customer experience across all
channels and touchpoints, and better tailor loyalty offers that attract
new shoppers and increase customer retention.”
For 80 years, GE Capital’s Retail Finance business has provided billions
of dollars in consumer financing through major retailers and more than
200,000 small- and mid-sized businesses across the United States. GE
Capital is a leading provider of consumer credit and helps clients build
their business through proprietary online technology; service, marketing
and sales tools; training resources; and retail and financing insights
to better understand consumers and the market environment.
About GE Capital’s Retail Finance business
GE Capital’s Retail Finance business is among the country’s most
successful retail lenders, with 80 years of experience in consumer
financing. The business, with its lending entity GE Capital Retail Bank,
provides customized credit programs to retailers and consumers in the
United States and Canada that help drive sales. This includes private
label and bankcard credit programs to major national, regional and
independent retailers in the U.S., as well as private label credit
programs, promotional and installment lending, bankcards and financial
services for consumers through dealers; contractors; manufacturers;
healthcare practices; and service providers across nearly 20 industries.
More information can be found at www.gogecapital.com
and twitter.com/GoGECapital.
GE Capital is one of the world’s largest providers of credit. For over
one million businesses, large and small, GE Capital provides financing
to purchase, lease and distribute equipment, as well as capital for real
estate and corporate acquisitions, refinancings and restructurings. For
our 100+ million consumer customers, GE Capital offers credit cards,
sales finance programs, home, car and personal loans and credit
insurance. For more information, visit www.gecapital.com
or follow company news via Twitter @GECapital.
GE (NYSE: GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in
energy, health and home, transportation and finance. Building, powering,
moving and curing the world. Not just imagining. Doing. GE works. For
more information, visit the company's website at www.ge.com.
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Editor Note: Graphic data representations and photography available
Tags:
Private-Label Credit Cards, Retail, Shopping, Share of Wallet,
Retailer-branded
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