"The gap between consumers' positive reaction to the concept and the lukewarm reaction to the execution suggests that issuers have not found the right combination of merchant brands and offers, or haven't communicated them effectively," says Nancy Stahl, editor of Cardbeat, in a statement.
Consumers place the highest value on discounts based on stores where they shop and for everyday items, such as gas and groceries. "However, few issuers seem to have cracked the code for how to turn the idea into a reality that actually motivates consumers the way co-branded reward programs do," she says.
Credit score information suffers a similar fate. Consumers like the idea of getting
information about their credit score and how to improve it, but those who've used this benefit are not impressed with what they got. "With card profitability under pressure, issuers need to make sure
they are getting the most bang for their marketing bucks," Stahl says. "Over-promising and under-delivering may be worse than not offering the benefit at all."--Tanya Irwin
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