The premium card market is heating up and there are opportunities for increasing usage of these high-end credit cards
The premium card market is heating up and there are opportunities for increasing usage of these high-end credit cards, according to a recent survey by Phoenix SYNERGISTICS entitled, Enriching Premium Card Programs. Survey findings reveal that a majority of those with household income of $100K+ have what they consider to be a premium-level credit card. This ownership level rises to eight in ten among the ultra-affluent group (those with household income of $400K+). In terms of potential, slightly more than one-third of those with household income of $100K+ indicate they are likely to obtain a premium credit card in the next year (prospects). One-tenth are “very” likely to do so. Potential is widest among younger consumers ages 18 to 34 (52%) and the ultra-affluent group with household income of $400K+.
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William H. McCracken, CEO of Phoenix SYNERGISTICS, stated, “Whether they are gold, platinum, titanium, or actually made of metal, premium credit cards have become key competitive products as the high-end credit card market heats up and card issuers seek new revenue opportunities. With affluent consumers as their key target market, premium cards generally offer higher spending limits, upscale rewards, and enhanced customer service. Issuers should aggressively pursue opportunities in the premium card market as these cards can be a valuable source of revenue and appeal to an attractive market segment. Usage of premium cards is fairly strong in the upper-income market and skyrockets among those with income of $400K+. Even so, there are opportunities to continue to grow usage of premium cards in this market. While initial demand is indicated by a minority overall, there are strategies for boosting this potential such as sign-up bonuses and customization.”
These are among the findings from Phoenix SYNERGISTICS study, Enriching Premium Card Programs, featuring online interviews with 750 consumers age 18 or older with household income of $100K+. This report examines consumer experience with premium credit cards. Consumer reaction to upscale rewards, enhanced services, and pricing is also assessed.
Phoenix SYNERGISTICS is the leading provider of multisponsor marketing research for the financial services industry. For information, Genie M. Driskill, COO/SVP-Research, or William H. McCracken, CEO, Phoenix SYNERGISTICS, 3091 Governors Lake Dr., Suite 520, Norcross, GA, 30071. Tel (800) 423-4229 or (404) 237-3373 ¨ Fax (404) 237-6470 Website http://www.synergisticsresearch.com