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Credit Card Rewards: A Banking Case Study

The Company

A major card issuer

The Challenge

The card provider frequently introduced different reward offers in an effort to increase customer spend and engagement, but management was unsure which offers were truly successful. The company wanted to understand if Double Rewards Points or Cash Rewards would be a more profitable strategy.

The Solution

APT’s Test & Learn® software rigorously matched test customers to similar control customers who did not receive an offer. Overall, both promotions were found to drive significant incremental sales through increased transactions. Double Rewards Points, however, outperformed Cash Rewards, and certain customer segments were shown to respond particularly well to the offer.

The Results

The client rolled out Double Rewards Points to ROI-positive customers, generating $3.6MM annually in incremental profit and cost savings.
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