According to a new study from MasterCard Worldwide,
three quarters of European consumers (73%) want a credit card which
offers rewards and almost half (48%) admit they would spend the reward
points on themselves - nearly twice the number that would give them to
a charity or environmental organization (25%) and more than double the
number that would spend them on family and friends (20%).
The survey of 1,400 credit card holders was conducted in the UK,
Germany, France, Spain, Italy, Russia and Poland in July and August
2006 on behalf of MasterCard by KRC Research, in order to benchmark
consumer attitudes to co-branding, ahead of MasterCard's seventh
annual Affinity and Co-branding Conference, to be held in Valencia,
Spain, on 7th - 8th September.
The findings also indicate a growing preference for luxury
rewards, with respondents wanting to treat themselves to discounted
city breaks (33%), free cinema, theatre or concert tickets (26%), free
spa days (25%), or a special house or garden makeover (24%).
However, there is still strong demand for financial incentives at
traditional retailers which consumers use every day. 65% of those
surveyed want a credit card that offers a discount on the price of the
purchase they are making at the time, and 57% want cash-back in the
form of a percentage of their spend at the end of the year.
Supermarkets (41%) and petrol (31%) are the commercial sectors from
which consumers most want to collect rewards.
The findings suggest that customisation of rewards is the key to
growing customer preference for co-branded credit cards. Six in ten
(59%) respondents said they would be interested in a credit card that
offers flexible benefits, allowing them to change the way they use
reward points as often as they liked.
Speaking on the eve of the conference, Frederic Conrads, Head of
Cobranding, MasterCard E urope, said:
"Our research suggests that consumers take a very pragmatic
approach to rewards on their credit cards. They want the flexibility
to alternate between everyday items, such as money off petrol, and the
occasional treat, such as a discounted city break. A card that allows
them to choose what they want, when they want it, is most likely to be
top of wallet."
What does your credit card say about you?
The research found that a third of European consumers are
attracted to a credit card that demonstrates spending power and
prestige (34%), which is most popular among Italians (55%). A third
would like their credit card to be linked to a strong retail brand
that reflects their personal interests (32%), with the Polish most
interested (39%).
A quarter of consumers would be attracted by an eye-catching
design on the card (24%), with the Polish most likely to be so (37%).
Another quarter would like a card they could design themselves (26%),
with the Italians most likely to want to (34%).
After supermarkets and petrol, the commercial sectors consumers
would most like a co-branded card from are travel (24%) and fashion
(23%). The Italians are most likely to want a card associated with
travel (33%), Germans are most likely to want to link themselves to
fashion (32%) and the French are most likely to want a card related to
a supermarket (53%) or petrol (41%) brand.
Credit card holders aged 18-24 are more likely than the over-25s
to want a co-branded card in the fashion sector, while credit card
holders aged 35-44 are most likely to want a supermarket card, perhaps
reflecting the priorities of young families.
Conrads said:
"Brand identity is a major concern for consumers today, so it's no
surprise that people want the card in their wallet to reflect their
interests and aspirations. Consumers are more likely to use a card
that they have an emotional connection to, whether it's linked to a
luxury brand or their favourite football club, particularly if that
card offers rewards to help maintain or attain a particular
lifestyle."
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a
critical economic link between financial institutions, businesses,
cardholders and merchants worldwide. As a franchisor, processor and
advisor, MasterCard develops and markets payment solutions, processes
close to 14 billion payments each year, and provides industry-leading
analysis and consulting services to financial institution customers
and merchants. Through its family of brands, including MasterCard(R),
Maestro(R) and Cirrus(R), MasterCard Worldwide serves consumers and
businesses in more than 210 countries and territories. For more
information, go to www.mastercardworldwide.com.
