Retailer-branded Credit Programs Build Customer Loyalty and Repeat Purchase
STAMFORD, Conn.--(Business Wire)--
Retailers spend a considerable portion of their budgets attracting and retaining
customers. A retailer-branded credit card program is a critical growth strategy
that can significantly increase customer loyalty, satisfaction, traffic and
sales for a retailer, according to recent analyses sponsored by GE Capital`s
Retail Finance business, the consumer lending unit of General Electric Company
The GE Capital Retail Finance Retailer-branded Credit Program Study was
conducted over a two-year period and encompassed internal and external data from
five major retail chains of various sizes across three main segments, including
specialty, big box and online. The analysis examined share of wallet and the
shopping habits of thousands of consumers nationwide, using a retailer-branded
credit card, as well as those customers using other payment methods, through
data analysis and case studies.
"The study confirms that retailer-branded credit programs favorably influence
share of wallet, as well as sales, loyalty, attrition, and satisfaction," said
Toni White, chief marketing officer of GE Capital`s Retail Finance business.
"Retailers that understand their customers, better engage and retain them. This
information provides a clearer picture of the value of credit and the impact of
retailer-branded credit programs on growing incremental sales and building
long-term customer loyalty."
Among the findings, retail credit customers:
* Make more frequent store visits, increasing from 1.4 per month to 1.7 per
month for nearly four extra trips per year. The higher traffic continues through
normal retail and seasonal cycles, and translates into a 29% overall boost in
* Increase incremental retail sales between 39-86% than customers who pay with
* Result in greater lifetime value, as retail credit cardholders stay more
engaged, and are 72% less likely to attrite or leave the retailer. After the
larger initial purchase, customer transactions may return to the average ticket
amounts observed before the acquisition of a store card (i.e., approximately $55
basket size, on average); however, increased foot traffic and sustained card
usage drive retail sales, as store cards may provide compelling value
propositions in the form of exclusive cardholder benefits and discounts and
* Save the retailer about 2% to 4% in interchange fees on every transaction
processed on their store cards, contributing to greater profitability.
* Provide 100% traceable sales and a mechanism for retailers to capture
information on high-ticket and special purchases and generate repeat store
visits through enhanced, value-added card benefits.
"These insights can help retailers of any size build better businesses and
strong credit programs, as well as more effectively direct their marketing
efforts and budgets," adds White. "Retailers can use data from branded payment
options to build a unique customer experience across all channels and
touchpoints, and better tailor loyalty offers that attract new shoppers and
increase customer retention."
For 80 years, GE Capital`s Retail Finance business has provided billions of
dollars in consumer financing through major retailers and more than 200,000
small- and mid-sized businesses across the United States. GE Capital is a
leading provider of consumer credit and helps clients build their business
through proprietary online technology; service, marketing and sales tools;
training resources; and retail and financing insights to better understand
consumers and the market environment.
About GE Capital`s Retail Finance business
GE Capital`s Retail Finance business is among the country`s most successful
retail lenders, with 80 years of experience in consumer financing. The business,
with its lending entity GE Capital Retail Bank, provides customized credit
programs to retailers and consumers in the United States and Canada that help
drive sales. This includes private label and bankcard credit programs to major
national, regional and independent retailers in the U.S., as well as private
label credit programs, promotional and installment lending, bankcards and
financial services for consumers through dealers; contractors; manufacturers;
healthcare practices; and service providers across nearly 20 industries. More
information can be found at www.gogecapital.com and twitter.com/GoGECapital.
GE Capital is one of the world`s largest providers of credit. For over one
million businesses, large and small, GE Capital provides financing to purchase,
lease and distribute equipment, as well as capital for real estate and corporate
acquisitions, refinancings and restructurings. For our 100+ million consumer
customers, GE Capital offers credit cards, sales finance programs, home, car and
personal loans and credit insurance. For more information, visit
www.gecapital.com or follow company news via Twitter @GECapital.
GE (NYSE: GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in energy,
health and home, transportation and finance. Building, powering, moving and
curing the world. Not just imagining. Doing. GE works. For more information,
visit the company's website at www.ge.com.
Editor Note: Graphic data representations and photography available
Tags: Private-Label Credit Cards, Retail, Shopping, Share of Wallet,
©2013 General Electric Company, All rights reserved.
For GE Capital
Dori Abel, 203-585-6702
Cristy Williams, 678-518-2596
Copyright Business Wire 2013