The highly competitive world of retail means businesses must find ways to create customer loyalty. Launching a credit card gives a brand the ability to pass out member points for purchases all over, offer higher perks for shopping in the establishment, and keep the business’s name at the forefront of consumers’ minds.
Is it worth the time and effort involved in launching a card?
As digitization accelerates beyond what anyone expected, finding ways to appeal to modern consumers can keep small brands from being overshadowed by online retailers. According to McKinsey, the COVID-19 crisis accelerated digitally enabled products by seven years. Companies responded and acted 20 to 25 times faster than they thought possible to adapt to the rapid changes. That means competitors may already have systems in place to attract the target audience.
Why Do Retailers Set Up Their Own Credit Cards for Their Stores?
Credit can be profitable to the store, offering an additional percentage on purchases when the consumer spreads the payments out over several months. Why should an outside party get 2.6% or more, when the store can grab those profits instead?
Businesses can also offer bonuses and set up loyalty programs through a card. A discount on the first purchase is an attractive offer for most people. It might also help them go ahead with the impulse purchase they otherwise would wait on.
Retail business owners know a customer who says they’ll think about it and return will likely forget the store and products the second they leave. “Out of sight, out of mind” applies when it comes to brick-and-mortar stores.
People just out of school may want to build their credit, but may not yet qualify for big-brand cards. Smaller store credit cards traditionally are easier to qualify for. Millennials and Gen-Z may feel more comfortable starting with a small-credit-line card to their favorite retailer before getting more lines of credit. Use a card to grab these consumers and make them loyal to the brand before they go elsewhere.
Tips to Launch a Credit Card
Don’t worry about the costs involved in launching a credit card. Businesses can partner with Primecard, for a branded card. Co-branded cards add the backing of a major corporation to the card but give the retailer the benefit of adding loyalty programs and perks.
Contact Primecard LTD for more information about your own branded card!
Contact Primecard today and let’s have a chat about your e-commerce online payments.
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