SAN MATEO, CA – The competition to acquire credit card customers online has heated up according to a new study by Keynote Systems (Nasdaq: KEYN), The Internet Performance Authority®. Keynote provides the industry’s most comprehensive periodic competitive benchmarking of consumer attitudes and experiences at leading credit card Web sites through its syndicated research reports. The company’s large scale studies are performed regularly allowing for key industries to be tracked over time from an online customer experience standpoint.
The Keynote Customer Experience (CE) Rankings for the Credit Card Industry are based on research with 2,000 prospective customers as they evaluated and interacted with leading credit card Web sites. In addition to traditional opinion data, Keynote’s proprietary research technology collects detailed qualitative and behavioral data as prospective customers perform tasks at each site.
The Web sites operated by American Express, Bank of America, Bank One, Capital One, Chase, Citibank, Discover, MBNA, Providian and Wells Fargo were evaluated as part of this competitive benchmarking study.
Competition for Online Customer Acquisition Heats Up
The Keynote study revealed an increasingly competitive race for customers online — and uncovered the key motivators for consumers when evaluating and applying for cards online. Although Discover Card and American Express provide the best online experience for consumers, as measured by the overall Keynote CE Rankings, the five leading card sites are closely grouped together in terms of customer experience appeal.
In addition, Bank One and Citibank have made gains in their effectiveness in acquiring customers online, joining MBNA atop the Keynote Acquisition Impact Index. The index gauges the overall likelihood of a visitor to apply for a credit card based on their online experience at a specific card site.
Keynote Customer Experience Rankings
- Discover
- American Express
- Chase
Keynote Acquisition Impact Index Rankings
- Bank One
- MBNA
- Citibank
Prospective customers visiting the Bank One site were 11% more likely to apply for a card now than they were just six months ago, when the last Keynote study of prospective credit card customers was conducted. Prospective customers visiting the Citibank site were 19% more likely to apply for a card now than they were just twelve months ago.
The seven leading sites in terms of customer experience and acquisition impact have a significant competitive advantage over the other sites evaluated during the study.
“A growing need exists for information regarding online credit application processes,” said Susan Cournoyer, principal analyst at Gartner. “Information such as satisfaction data and ease of use data can help consumers more effectively navigate the world of online credit, and also help providers of credit to improve their services in ways that directly align with consumer needs and preferences.”
Privacy and Security Issues of Paramount Concern to Consumers
In a significant indication of consumer concern, privacy and security issues were the second most important driver of customer satisfaction when evaluating credit cards online, with only credit card fees and interest rates having a greater impact. More than 85% of study participants said privacy and security issues were important or very important to them.
The consumer’s decision process was also driven considerably by the availability of customer support options and the ease of applying online. More than 65% of consumers rated ease of use as important or very important — and close to 15% of consumers expressed frustration with the online application process at the site they visited. Discover, MBNA and American Express were rated as having the best online application processes.
“Privacy and security issues are of paramount importance to consumers evaluating a credit card site,” said Dr. Bonny Brown, director of research and public services at Keynote. “But once customers sign up with a card company, these issues diminish in importance, as the consumer grows comfortable with the card and Web site — then customer support issues come to the fore as a driver in influencing customer experience and loyalty.”
How Consumers Search for Credit Cards Online
Most consumers (53%) start their search for a credit card at a search engine and then follow a link to a specific credit card or bank site, 47% type in a bank or credit card company’s URL directly into their Internet browser. Six in ten consumers (60%) use a search engine at some point in their search and evaluation process, with Google, Yahoo! and MSN being the top search destinations.
The entire report, Keynote Customer Experience (CE) Rankings for the Credit Card Industry, is a 100+ page examination of the credit card industry containing hundreds of additional data points and a detailed analysis of the findings. For information about purchasing the full report, visit http://www.keynote.com/syndicated.html.
