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Australian Credit Card Issuers Battle for Customer Satisfaction: J.D. Power Reports

American Express ranks highest in credit card satisfaction; Big Banks lag behind competitors
2016-07-14 08:16 3664

MELBOURNE, Australia, July 14, 2016 /PRNewswire/ -- Credit card issuers in Australia need to make their rewards programs more attractive for customers or else they may face a significant reduction in consumer spending, according to the J.D. Power 2016 Australia Credit Card Satisfaction StudySM. And even as the Big 4 make small strides in improving their customer satisfaction scores, the other competitors outpace their improvement by a significant margin. The study also finds that American Express customers are the most satisfied with their cards.

J.D. Power 2016 Australia Credit Card Satisfactory Study(SM)
J.D. Power 2016 Australia Credit Card Satisfactory Study(SM)

However, while overall credit card satisfaction continues to improve, a large percentage of customers still report that their rewards program is either unattractive or only slightly attractive. Only one-fourth of cardholders say that the cards' rewards program resonates with them. Furthermore, nearly one in five cardholders thought that the value of their rewards had declined in the last 12 months. This presents a double setback for card issuers as a lackluster rewards program not only depresses satisfaction scores but also has the effect of lowering monthly spend by as much as 300%.

"Clearly Australian customers are not getting enough from the loyalty and rewards programs offered by credit card issuers in Australia; or simply don't know how to access the benefits or understand them," said Dr. Gordon Shields, director at J.D. Power. "The overall decline in value of some programs should prompt consumers to look around for the best offerings in order not to squander the potential benefits they can get from cards."

The most popular rewards amongst Australians are gift cards, airline tickets and cashback offers. Special events, hotel stays and donations are least preferred.

The study also reported an increase in cardholders (26%) actively using a bank app to track their credit card activities, up from 15% in 2015. On average, eight of 10 cardholders also are visiting their banks' website to service their accounts.

About the Study

This study measures customer satisfaction with their credit card issuer by examining six key factors: interaction; credit card terms; billing and payment; benefits and services; rewards; and problem resolution. Satisfaction is calculated on a 1,000-point scale.

For a copy of the full release, please click here.

Media Relations Contacts

Mark Detre, PPR +61-(03)-8643-1631; Mark.Detre@ppr.com.au
XingTi Liu; J.D. Power; Singapore; +65-6733-8980; xingti.liu@jdpower.com.sg

Photo - http://photos.prnasia.com/prnh/20160713/8521604536

Source: J.D. Power
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