RHINEBECK, NY— (July 1, 2013) – The battle for wallet position among credit card issuers is intense, and rightfully so. When it comes to credit card use, the top-of-wallet card gets nearly three-fourths (72%) of the consumers’ total spending on credit cards, with the rest being divvied up among all the other cards owned. Balance shares also tip to the top-of-wallet card, but it’s not as dramatic. “Vying for Top-of-Wallet (…and its rewards),” a new report from Phoenix Marketing International, discusses credit card wallet position and its implications for issuers.
American Express, Chase, and Wells Fargo perform well when it comes to capturing the top-of-wallet position. “Other issuers also succeed at varying levels, and the reasons for success vary by card issuers,” says Greg Weed, Director of Card Research. “Rewards and low interest rates are always prime drivers of wallet position, but deeper relationships and customer appreciation add to the equation,” he added.
Issuers Can’t Rest on Their Laurels
Winning the top-of-wallet position doesn’t end the battle or insulate issuers from the competition. In fact, one-third of consumers are open to demoting their top-of-wallet card if a better offer comes along, and over one-in-ten actually switched in the first three months of this year. “Vigilance is paramount for issuers because after a brief lull, consumers are once again being barraged with new card offers,” says Mr. Weed.
About this Report: As part of its quarterly research study, Credit Card Monitor, Phoenix surveyed 3,000 credit card owners in the first quarter of 2013 on a variety of topics including card ownership, use, wallet position and loyalty.
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About Phoenix Marketing International
Founded in 1999, Phoenix Marketing International is now the 32nd largest market research firm in the most recent Honomichl report. Phoenix provides research, marketing and consulting services in a wide-range of practice areas, including financial services, healthcare, insurance, consumer package goods, automotive, travel & leisure industries, affluent markets, technology and media.