CEB TowerGroup believes the continued weak economic recovery and three successive months of decreasing consumer confidence have reduced the major credit card issuers’ interest in acquiring new customers. According Ipsos/Synovate, a global provider of credit card information, first quarter 2012 new offers for credit cards decreased over 45% from fourth quarter 2011. In addition, 250,000 fewer new credit card offers were mailed in the first quarter 2012 compared to first quarter 2011.
The Federal Reserve reported nearly an 8% increase in revolving balances in the most recent May 2012 G-19 release. Despite continued improvement in credit card delinquencies and personal bankrupts, the growth in revolving balances and the weak economy are signaling warning signs that these positive trends may not continue.
These difficult market conditions remind credit card issuers of the importance of retaining their credit worthy and profitable customers. Customer retention strategies and business solutions will be discussed in the June 19 webinar - How Do You Retain Your Most Valuable Credit Card Customers. CEB TowerGroup will be co-presenting with ThunderHead.com. Thunderhead.com provides these solutions to several of the top five credit card issuers. Please join us for that session and register today.