Card issuers making loyalty the big deal - report

Research suggests that credit card issuers have turned their backs on the chase for quantity in order to focus on quality when it comes to customer accounts.

<p>Following a brutal few years of putting customer numbers as the main priority, new uSwitch data has revealed that card issuers have realigned their strategy to concentrate on retaining existing account holders, the Fair Investment Company website has reported.<br /><br />The previous credit card market philosophy proved to be difficult for card issuers as 0% introductory offers gave rise to the 0% &#0039;surfers&#0039; and short stay customers that often cost the companies instead of being a source of profit. <br /><br />Now, according to the study from the price comparison outfit, credit card providers have moved their efforts into devising promotions to encourage loyalty amongst existing customers, while virtually abandoning enticements for new joiners.<br /><br />Card issuers are now more likely, the research suggests, to offer periodic discounts, which require longer term associations between the card company and account holder, instead of unprofitable 0% balance transfer deals.<br /><br />Lenders are now aiming for retention rather than volume, argues uSwitch&#0039;s personal finance department head, Nick White.</p>