Auriemma Consulting Group Says Customer Service New Competitive Frontier for Credit Card Issuers

WESTBURY, N.Y.-(Business Wire)-January 31, 2007 - Many consumers feel only somewhat satisfied with credit card customer service, creating an opportunity for enterprising credit card issuers to differentiate themselves from their competitors through enhanced customer care.

According to research by Auriemma Consulting Group (ACG), 48%of consumers think the customer service on their most frequently used credit card is "outstanding," but 44% are less committed, giving customer service a neutral rating.

Consumers are similarly divided about the quality of customer service representatives employed by card issuers. Nearly half of consumers said the customer service agents they speak with are well trained and able to help them with their questions or account issues. The remainder of the group was less satisfied with the level of knowledge customer service representatives have about their concerns, reflecting industry prospects for issuers to differentiate themselves through innovative service.

"Right now, about one-third of consumers favor a particular credit card because they perceive the issuer's customer service to be outstanding,'" says Megan Bramlette, an ACG associate. "Clearly, issuers looking to break away from their competitors should start building exceptional customer service by increasing call center representative training and reducing hold times. These improvements would signal a departure from customer service as a hygiene function — put in place by issuers to keep cardholder relationships tidy but not necessarily to promote greater longevity or profitability,"

She says knowledgeable phone staff will also result in favorable service call outcomes. "Consumers prize good service and look for it in all of their relationships, from the supermarket supplying their groceries to the bank issuing their credit cards," Bramlette says. "The trust engendered by superior customer service agents may boost cross-sales, offsetting issuers' investments in representative training and call center overhead."

The analysis included in this report came as result of a November 2006 survey of 409 credit card users. Auriemma Consulting Group is a management consulting firm to the payments and lending industry.