SHANGHAI: 26 April 2018 — With over 20% growth in new credit cards issued last year in China, cardholders are putting pressure on their issuer’s customer service, benefits and rewards to garner satisfaction. Issuers delivering on their promise drives satisfaction and loyalty, according to the J.D. Power 2018 China Credit Card Satisfaction (CCS) Study.SM
The study identifies and measures key drivers of credit card satisfaction among customers in China and its impact on customer loyalty and advocacy. Of the 35% of customers who switched their primary card in the past 12 months, 19% switched for better customer service; and 45% say they definitely would recommend the card to their friends and family.
“If customers have a positive experience and receive great customer service from their card issuers, they will be more loyal, increase spending and be more likely to have multiple products with the issuer,” said Winston Xue, General Manager of Financial Services at J.D. Power China. “With the high costs of acquiring new customers, it is important for issuers to onboard, engage and take care of these customers so they don’t switch to another card.”
The study also finds a preference for “simple instantaneous” rewards such as cashback, as opposed to “aspirational” rewards that require cardholders to earn enough points in order redeem. More than 20% of cardholders have not redeemed their rewards in the past 12 months, mainly due to not earning enough points. “The majority of customers (80%) do not fully understand how to earn and redeem rewards. Clear and concise communication helps drive satisfaction and, in turn, result in subtantially higher spending,” added Xue.
Despite the prevalence of self-serve channels, 63% of customers who experience a problem still prefer to seek a resolution through their issuer’s call centre. Therefore, it is important for issuers to ensure they are there for their customers at these key moments, but also to add value during these interactions, as satisfaction can improve by 54 index points (1,000-point scale).
Other findings of the study include:
- Customers prefer paying with credit card while travelling: Nearly two-thirds (62%) of cardholders have travelled internationally in the past 12 months for either business or leisure. Almost all (97%) cardholders have used a credit card while travelling, while 73% have used a mobile payment app (i.e. Alipay or WeChat Pay).
- Online interaction preferred: The study shows that customers are comfortable interacting with their card issuer digitally. Nearly 9 in 10 customers have used digital channels over the last 12 months, compared with 35% of those who have used call centres. However, call centre satisfaction is marginally higher than satisfaction with digital channels.
- Satisfaction increases with additional products: Nearly 9 in 10 (89%) customers have additional products or services with the same card issuer. Overall satisfaction is 55 points higher as compared with those who only have a credit card with their issuer.
China Everbright Bank ranks highest in credit card satisfaction with an overall score of 806 and performs best in three of the six factors. Bank of Communications ranks second with a score of 805, and Industrial Bank ranks third with a score of 799.
J.D. Power China Credit Card Satisfaction (CCS) Study, now in its second year, examines customer satisfaction with the products and services provided by their main credit card issuer. The 2018 study measures overall satisfaction in six key factors: interaction (41%); billing and payment (20%); credit card terms (16%); benefits and services (10%); rewards (10%); and problem resolution (4%). The study is based on responses from 9,068 credit card customers. The study was fielded from December 2017 through January 2018.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. J.D. Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on J.D. Power WeChat and Weibo.
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