- 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.
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. ###
Editor Note: Graphic data representations and photography availableTags: Private-Label Credit Cards, Retail, Shopping, Share of Wallet, Retailer-branded©2013 General Electric Company, All rights reserved.