Rewards Play Major Role In Credit Card Customer Satisfaction
The inaugural J.D. Power Credit Card Satisfaction Study found that when it comes to choosing a credit card, it’s all about rewards. But just offering rewards isn’t enough: cardholders have to understand how to redeem them, as well.
Jim Miller, Vice President of Banking and Credit Card Practice at J.D. Power, said there’s more to building a satisfying rewards program than points, miles, or cash back offered. “Understanding how to redeem rewards—and having redeemed rewards recently—has a significant effect on satisfaction and loyalty levels.” He said credit card issuers need to educate their customers on how redemption works, and design their programs in a way that encourages them to redeem their rewards frequently.
Eighty-seven percent of credit card holders who participated in the J.D. Power study are enrolled in a rewards program; this includes the 48 percent of respondents who said they’d switched their primary card during the past year in order to have access to a more valuable rewards program.
Knowing how to redeem rewards is key
The study showed that 64 percent of respondents say they completely understand how to redeem rewards with their credit card program. Among this 64 percent, credit card satisfaction is 87 points higher than it is for folks who said they don’t fully understand how their rewards program works.
Satisfaction with their credit card program was strongly linked to how often cardholders redeemed their rewards, whether that was in the form of cash back, free flights, upgraded hotel stays, or other types of rewards. That said, cash back and airline tickets were the most popular rewards among those surveyed.
Those survey respondents who had redeemed rewards within the past month were the most satisfied with their credit card issuer, compared with those who had redeemed rewards three months ago, more than a year ago, or not at all.
Not all credit cards offer rewards
While rewards credit cards are popular, and customers enjoy perks like cash back, hotel points, and airline miles, some credit cards don’t offer rewards programs—and that’s okay.
People with limited or no credit, for example, may benefit from a secured credit card. This type of card does not typically offer rewards, but is helpful for those who are looking to build or repair their credit. They are increasingly popular among a wide variety of customers, and provide a necessary service as well as a stepping-stone to better credit—and approval for a rewards credit card.
Latest Credit Card Rewards News
M1 Finance has made its popular Owner’s Rewards Card even more enticing with seven new brands to earn accelerated cash back on purchases. The M1 Owner’s Rewards Visa® Signature Card is one of the more tempting fintech and investment rewards credit cards on the market today. Launched in the summer of 2021, the card offers […]
Rotating category credit cards are cash back credit cards that offer their highest cash back percentage in shopping categories that rotate on a regular basis, often quarterly. The major credit card issuers have already opened registration for Q1 2022 rotating bonus categories on their popular cash back credit cards. The first quarter is active from […]
The good news for American Airlines’ frequent flyers and Citi ThankYou Points fans: Citibank has added American Airlines as a new transfer partner for its ThankYou Rewards program. Transferred ThankYou Points can be used to secure flights, flight upgrades, vacation packages, hotel stays, car rentals and more through the American Airlines AAdvantage program. Although this […]
The SoFi Credit Card was introduced in October 2020, and now it is open to anyone interested in applying. SoFi has used the time since the limited release to improve and refine their credit card based on feedback they received from first members. The SoFi Credit Card became available to the general public on March […]
American Express has rolled out a heap of new perks for the following group of its co-branded travel credit cards: Delta SkyMiles, Hilton Honors, and Marriott Bonvoy cards. The deals are available to owners of the participating Amex cards issued before Jan. 1, 2021. Depending on the card, eligible holders can receive from $5 to […]
