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4 Warning Signs You Need a Credit Card Program Performance Assessment

When it comes to deciding whether or not your company could benefit from an independent credit card program performance assessment, it’s important to remember the following:  you don’t know what you don’t know. Thus, an independent expert assessment should always be part of your ongoing business process, and conducted on a routine basis. 

While it’s never a bad idea to obtain a sense of how your program is performing, every two to three years is generally regarded as an appropriate amount of time between assessments.

As you decide whether or not it’s the right time for a card program performance review, here are four tell-tale signs that signal you should act sooner than later.

1. Account Production Begins to Diminish Versus Historic Norms

A negative trend in account production should always spur a quick response and have you asking “is the root cause of the problem an issue on my end, or is there a problem with my card issuer?”  In these types of cases, be aware of any changes to marketing frequency or program scope undertaken by your card issuer.  These changes should be addressed immediately.

2. Approval Rates on Applications Begin to Decline

Declining application approval rates can reflect a change in your card issuer’s credit policy. It can also be an indication that you are experiencing “prospect fatigue.”  In these cases, prospect names are not being replenished quickly enough to maintain historic credit quality. In addition, declining approval rates may be triggered by a channel shift taking place in your prospect pool.   A root cause analysis will help you get to the bottom of the issue and take measures to correct it.

3. Innovation Process Begins to Stall

Successful credit card programs are continuously undergoing process improvement.  Value propositions should be evaluated on a regular basis and fine-tuned to address the changing marketplace.  A noticeable lack of program innovation can often indicate a larger issue with the relationship that must be addressed.  Programs being managed in a status quo manner typically require a fresh perspective to set the stage for future growth.

4. Communication with Financial Institution Becomes Less Frequent 

If it appears that your card issuer has stopped paying attention to you or your business, it may be an indication that the performance of your co-brand or private label card program is deficient and that your partner may not view further investment into the program as advantageous.   Similarly, if your weekly calls start becoming monthly calls with little, or no explanation, it could be a sign that your program is challenged and something needs to be addressed.

Get Started with a Credit Program Performance Assessment 

If you’re experiencing any of these symptoms, it’s probably time for an unbiased assessment of your credit program performance. For more information on how a credit program performance can help your organization, please contact us today.

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