first_imgIt’s not uncommon for credit unions to overlook existing cardholders as a significant opportunity to help stimulate portfolio growth and increased profitability.  But, it is more common for credit unions to equate portfolio growth and increased profitability solely on new account acquisition.  However, it is easier and more cost effective to leverage your existing cardholders for increased portfolio growth and profitability than to acquire new accounts.When you consider there are billions of credit card solicitations a year that are going out in attempt to acquire your credit union’s existing cardholders, you need to make sure that you are actively managing your existing cardholders with care.  You also need to regularly communicate on why your card program is best for them, and encourage them to keep and use your card as their card of choice.  In addition, you need to offer products and features that will drive increases in balances, volume, usage, and loyalty with your credit union rather than allowing them to accept another financial institution’s offer.What do you do to better manage your existing cardholders?First, evaluate whether you have a competitive credit card program that will help retain your cardholders.  It is easy for a cardholder to make the decision to jump to another offer if you don’t offer what is considered a competitive program in today’s market.  For example, if you don’t currently offer your members a Platinum credit card with an option for rewards, including the periodic price incented balance transfer promotion, your credit union is not going to be considered competitive.  Platinum and Rewards cards have become the standard, and in today’s competitive market, it will be very difficult to hold on to the existing accounts without a competitive card program. continue reading » 6SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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