This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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:

  • 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.
  • Increase incremental retail sales between 39-86% than customers who pay with other methods.
  • 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.
  • Save the retailer about 2% to 4% in interchange fees on every transaction processed on their store cards, contributing to greater profitability.
  • 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.”

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs