New Product Bundles Allow for Differentiated Acquisition and Retention Strategies
RICHMOND, Va., April 16 /PRNewswire/ -- Affinion Loyalty Group (ALG) will unveil a line of embedded credit card products, referred to as enhancements, at the 21st Annual Card Forum & Expo, April 20-22, in Marco Island, Fla. at the Marriott Resort Golf Club & Spa.
ALG's line of enhancements will help financial institutions respond to increased government regulation that could adversely impact credit card profitability. In December, the Federal Reserve Board modified its rules to make credit card pricing less flexible. Additionally, Congress is considering legislation that would further restrict credit card issuers' pricing and marketing activities, such as the Credit Cardholders' Bill of Rights Act of 2009.
"In light of changing regulations and pending legislation, we saw a need in the marketplace for a line of products that would enable our clients to engage their customers in response to new restrictions on marketing and pricing," said Marti Beller, President, ALG. "We also developed a pay-for-performance pricing model that aligns costs with profitable consumer behavior eliminating the traditional concern around enhancements being a high-expense product."
ALG's enhancement products are designed to cost-effectively meet the needs of many consumer segments, ranging from affluent to small business owners. The enhancements range from insurance-based products to identity theft protection, and can be marketed to drive acquisition or specific purchase behavior. These products can be delivered through ALG's innovative, proprietary Web site that enables self-selection and self-service by individual cardholders.
Through an independent study of cardholders using ALG's proprietary Web site, 92 percent said they are more likely to use their credit card when they know more about the enhancements included. This site also provides issuers a channel to drive additional revenue through up-sell opportunities.
"Enhancements are true to who we are as a company; they're what we founded our company on nearly 30 years ago," continued Beller. "We're excited about our initiative to reinvigorate our enhancement offerings, and are confident these unique offerings will help our clients further engage customers while increasing overall profitability."
About Affinion Loyalty Group: Affinion Loyalty Group (ALG) is a leading loyalty provider whose products and services touch one in every three Americans. With nearly 30 years of experience, the company drives incremental revenue by increasing customer loyalty for its clients who include top financial institutions, hotel and airline companies, and automotive manufacturers. Headquartered in Richmond, Va., ALG is the loyalty division of Affinion Group, the global leader in customer engagement. For more information, visit www.affinion.com/loyalty or call 800.622.4863.
SOURCE Affinion Loyalty Group
