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Auriemma Welcomes Managing Director and General Counsel to Senior Leadership Team

(New York, NY): Auriemma is proud to announce the addition of Mindy Harris as Managing Director and General Counsel, starting November 1, 2017. She joins Auriemma from Nordstrom Bank, where she was SVP, General Counsel and Compliance Officer.

Harris will contribute to client engagements across Auriemma’s existing four lines of business with her vast knowledge and experience overseeing the regulatory compliance function at card issuers and negotiating a diverse array of contracts including card partnership agreements.

“Mindy will elevate our game as we support clients trying to navigate the complex burdens of regulatory compliance issues in today’s environment,” said Marc Sacher, EVP at Auriemma. “She understands how that influences ongoing operations, as well as how those obligations impact partnership structures among issuers, brand partners, and even third-party investors.”

Harris also will serve as General Counsel for Auriemma. In this role, Harris will advise the firm on legal, regulatory and compliance matters and will be responsible for the firm’s legal affairs.

“Auriemma is admired as a trusted advisor to the consumer credit card and payments industries,” said Harris.  “I am delighted to join Auriemma at this exciting time of sweeping change across the financial services landscape. I look forward to working alongside Auriemma’s outstanding team of industry experts as they drive ongoing innovation and success for our clients.”

In her previous role at Nordstrom Bank, Harris built and led high-performing legal, compliance, and enterprise risk management teams that supported Nordstrom’s co-brand card programs and bank.

Before joining Nordstrom Bank, Harris served as in-house counsel focusing on credit cards and consumer payment systems at banks and servicers including U.S. Bank, Plus System, Inc. and Rocky Mountain BankCard System.  She is a board member and past president of the Credit Card Bank Compliance Association.

 

About Auriemma Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space.  We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines.  Founded in 1984, Auriemma has grown from a one-man shop to a nearly 50-person firm with offices in New York and London.  For more information, contact Marc Sacher at (212) 323-7000.

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Security Concerns and Problems at the Register Continue to Depress Mobile Pay Usage and Net Promoter Scores

(New York, NY):  Mobile pay usage among eligible consumers is down 5% compared to this time last year (25% vs. 30%). And the decline in adoption is expected to continue into Q4 – a period that has seen seasonal dips in Mobile Pay usage the past two years, according to Auriemma  Group’s Mobile Pay Tracker. This new research reveals a myriad of reasons why consumers aren’t adopting mobile payments quickly, including a lack of need and interest, and that Net Promoter Scores (NPS) are seeing significant declines. But some barriers are directly influenceable by merchants and issuers alike, namely security concerns and problems at the Point of Sale (POS).

Nearly one-third (32%) of consumers cite security concerns as a top barrier for using mobile payments. A slightly smaller proportion (21%) actually believe the method is unsafe. Auriemma’s research identified specific ways mobile pay providers could alleviate concerns that block the trialing of mobile payments.

For one, 58% of consumers want issuers to assure them that mobile payments fraud will be covered by the bank, similar to card-based payments. And 57% of customers would like to see data demonstrating the security of mobile payments, with 43% wanting direct comparisons to more common payment methods such as magnetic stripe and chip cards.

“Issuers who do these things could find themselves at the top of the mobile wallet for new adopters within their customer base,” says Jaclyn Holmes, the Director of Auriemma’s Payment Insights. “In an environment of heightened consumer anxiety regarding data breaches, it is critical to clearly communicate mobile payments’ security to customers.”

Confidence with security alone, however, isn’t enough to grow mobile pay adoption. Merchant acceptance is crucial for establishing habitual use, but many Pay users run into problems at checkout. These issues at the POS are a great risk to the most active mobile pay users, who experience the highest incidences of disrupted transactions.

The majority of Samsung Pay (74%), Android Pay (63%), and Apple Pay (52%) users consider themselves to be at least somewhat active. A notable proportion of each have said they encountered a problem at the register (44%, 33%, and 37%, respectively). The top reason for the issue, however, is unfamiliarity of store personnel (55%) followed closely by problems with the actual terminal, including “transaction did not go through” (46%) and “terminal took too long” (35%).

These issues have a clear impact on Pay user’s likelihood to recommend the service. Auriemma research reveals sharp declines between Q4 2016 and Q3 2017 in the Net Promotor Scores (NPS) of Apple Pay (from 22 to 4), Android Pay (from 18 to 13), and Samsung Pay (from 46 to 21). While Samsung Pay’s technology should render it mostly immune to problems at the POS, even it has had difficulty staying away from issues.

“One of the key benefits of Samsung Pay is that it can be used anywhere that accepts cards,” says Holmes. “But even its enthusiastic user base risks becoming disenchanted by recurring issues at the POS.”

Problems at the register don’t just impact behavior at the transaction-level. Half of those who had problems at a retail location that accepts mobile payments say the issue made them use the service less often overall. Problems at POS are particularly perilous for cards at the top of the digital wallet, who have the most to lose if the Pay transaction is unsuccessful. In fact, 45% of in-store Pay purchasers quit trying to use mobile payments entirely, and use a physical card instead.

There are many ways to educate those wary of the method, but the real question is whether issuers and merchants are willing to put in the time to train their customers and employees. While merchants may want to offer their customer’s preferred payment method, offering it without the proper employee training and support stops mobile payment adoption in its tracks. Likewise, issuers who make their card compatible with a mobile wallet without educating customers of its benefits are forfeiting potential utilization. Issuers who want to remain or become top of the mobile wallet, and merchants looking to provide a seamless payment experience for those Pay-preferred, play a pivotal role in getting them off the ground.

Survey Methodology

This study was conducted online within the US by an independent field service provider on behalf of Auriemma Consulting Group (Auriemma) in July/August 2017, among 1,505 mobile pay eligible consumers. Respondents were screened to own an iPhone 7/7+/6/6+/6s/6s+ or Apple Watch (in combination with an iPhone 5/5C/5S) – a Samsung Galaxy S8, S8 Edge/Edge+, S7, S7 Edge, S7 Active, a Samsung Galaxy S6, S6 Edge/Edge+, S6 Active or Galaxy Note 5, Note 7 – Gear S2 or S3 watch (in combination with an Android/iPhone smartphone) – and/or other Android phone with KitKat (4.4) OS or newer. All respondents also have a general-purpose credit card in their own name. In addition to the quantitative web survey, eleven in-depth interviews (IDIs) were conducted in August 2017.

About Auriemma Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space.  We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines.  Founded in 1984, Auriemma has grown from a one-man shop to a nearly 50-person firm with offices in New York and London.  For more information, contact Jaclyn Holmes at 212-323-7000.

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Auriemma to Lead Money20/20 Panel — Wendy’s & Dunkin’: Payments Innovation in the Quick-Service Restaurant Industry

Auriemma Group (Auriemma) is proud to announce its latest speaking role at Money 20/20 in Las Vegas.

Marianne Berry, Managing Director of Auriemma’s Payments Insights practice, will moderate a session focused on mobile payments in quick-service restaurants. The session will dissect how mobile payments have been used to drive traffic, streamline ordering, improve service times and increase consumer loyalty. Panelists include two iconic QSR brands and the technology partners that helped them bring these innovative solutions to market.

The session, scheduled for Monday, October 23, 10:40 – 11:30am will explore:

  • What payments technologies will help reinvent how we experience quality food served fast?
  • How are customers adopting these new technologies?
  • What are the benefits for QSR merchants and their greatest implementation challenges?

Panelists include Denis Bouchard, Head of Payments, The Wendy’s Company; Ben Kaplan, Group Vice President of CashStar, Blackhawk Network; Sherrill Kaplan, VP Digital Marketing & Innovation, Dunkin’ Brands; and Mike Braatz , Chief Product Officer, ACI Worldwide.

Mark Your Calendar!

Wendy’s & Dunkin’: Payments Innovation in the Quick-Service Restaurant Industry

Monday, October 23 |10:40 – 11:30am | Titian, The Venetian Level 2 (Commerce Track)

About Auriemma Consulting Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space.  We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines.  Founded in 1984, Auriemma has grown from a one-man shop to a nearly 50-person firm with offices in New York and London.  For more information, contact Marc Sacher at (212) 323-7000.

 

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Don’t Blame Payments for Abandoned Shopping Carts Online

(New York, NY): Online shoppers browse for items differently than their in-store counterparts. They peruse products without salespeople, lines, or the pressure that comes with hours of operation. In this environment, shopping carts can sit idle for days while shoppers mull over a potential purchase. A whopping 79% of consumers have left an online cart unattended, according to new data from Auriemma Group, developed specifically for the Merchant Advisory Group’s (MAG) 2017 Annual Conference. The study of 800 debit cardholders revealed why consumers abandon an online purchase, how often these abandoned carts make it to checkout, and shed light on how retailers can use online checkout services and mobile payments to improve conversion rates.

When asked why they abandon their carts, online shoppers typically cite merchant-controlled reasons, such as finding a better price elsewhere (33%), waiting for a sale (29%), or trying to reach a free shipping or discount minimum (29%). The good news? Abandoned carts don’t necessarily stay abandoned forever. In fact, 80% of cardholders say the majority of their online purchases are completed at a later date.

“Online shoppers don’t feel the same sense of urgency consumers may experience in-store,” says Jeff Tennenbaum, Director at Auriemma. “For some, adding items to their cart could simply be a way to keep track of them. Will they go on sale? Are they cheaper somewhere else? And while payment options may not push consumers to begin the purchasing process online, they certainly encourage completion once a purchase decision has been made.”

Online checkout services and mobile payments increase the likelihood of online order completion for those that use them. This is true for those who have ever used Apple Pay (63% are more likely to complete), PayPal (61%), Visa Checkout (59%), and/or Android Pay (57%). Although it is not instrumental in getting them to checkout, the smooth, secure payment experience online checkout and mobile payments provides does help online shoppers complete their purchase.

“We’re excited to share more data that illustrates how retailers can use the online checkout experience to improve their online conversion rates,” said Tennenbaum. “Retailers who attend the MAG Conference this month will gain a new understanding of how their customers interact with them online, what that means for brick and mortar, and how that translates to the overall shopping experience.”

Tennenbaum will be speaking at MAG’s 2017 Annual Conference on Wednesday, September 27th from 4:15-4:35 p.m. in a TED-style presentation titled, “New Customer Experiences and Expectations in Omnichannel Commerce.” He will also be a panelist for “Top of Wallet in Digital Commerce: The Critical Role of Default Payments” on September 28th at 10:15 a.m.

Survey Methodology

This study was conducted online within the US by an independent field service provider on behalf of Auriemma in June and July 2017, among 800 adult debit cardholders. The number of interviews completed on a monthly basis is sufficient to allow for statistical significance testing between sub-groups at the 95% confidence level ± 5%, unless otherwise noted.

About Auriemma Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space.  We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines. For more information, contact Jeff Tennenbaum at (212) 323-7000.

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Bolstering Credit Card Profitability Despite Challenging Economic Indicators

(New York, NY): It’s been quite a while since the U.S. credit card industry has had to worry about profitability.  Nearly a decade of close-to-zero funding cost and below-trend losses were the perfect mix for very healthy margins, even after increasing both consumer rewards and co-brand partner compensation.  But lately, new data is emerging that suggests the good times may be waning.

From 2012 to 2016, US credit card issuers experienced a gradual erosion of profitability.  Net income as a percentage of average assets fell from a high of 6.6% to 2.7%, according to the FDIC.  In this context, the results of the 2017 stress tests, in which credit card assets represented the largest potential credit risk for the large bank holding companies, seems more understandable.

While a net return on assets (ROA) of close to 3% is still a healthy profit margin by banking standards, the downward trend is unmistakable. (It’s particularly noteworthy that this erosion was concurrent with historically low interest rates.) And there are new risks to profitability: data from Auriemma’s Industry Roundtables indicate that the top 11 U.S. card issuers’ average quarterly loss rate increased 13.4% between the fourth quarter of 2016 and the first quarter of 2017, signaling that the increasing credit loss trend has not yet abated.

While these trends are gathering force, it’s important to note that the credit card industry has seen difficult times before and has always been able to adjust and rebound.  Here is a potential roadmap for this situation.

The first step for all players, regardless of size, is to conduct a deep-dive portfolio review. By identifying which segments are most vulnerable to deterioration, an issuer can more closely tailor possible solutions.  Ideally, the segmentation should be more than just a FICO or risk segmentation and would include profitability metrics as well. While the CARD Act has essentially eliminated the ability to re-price for credit migration, calculating profitability for each FICO band (or other risk metric) is still a critical step in evaluating the portfolio.  This analysis can be optimized with segmentation by either origination vintage or by origination campaign. Of particular importance: vintage analysis for any change-in-terms (CIT) portfolio actions. Establishing the link between underwriting changes and credit outcomes is critical to an honest assessment.

After the portfolio review, there are many possible paths to follow. Here are a few strategies for issuers to consider.

Take no action. If the portfolio review suggests that the credit trend is anomalous or is likely to revert to a better level, then taking no action and continuing to monitor the portfolio may be the best course. One month does not a trend make.

Be the counter-puncher – and aim for growth. Being aggressive when others play a conservative hand is a time-honored, but high-risk way to grow. (Warren Buffett famously said, “Be fearful when others are greedy and greedy when others are fearful.”) Some issuers will see the market deterioration as an opportunity to gain market share as more conservative issuers pull back. This approach is not for the faint of heart, and the challenges it presents are obvious.  But for a highly capitalized, sophisticated, credit-savvy issuer this can be a tremendous opportunity.

Change underwriting standards. For an issuer that has seen some portfolio deterioration but is not expecting a default tsunami, reducing credit exposure on newly originated accounts with tightened underwriting may be all that is needed. In addition to modifying credit selection and market solicitation criteria, issuers will also want to revisit line assignments (both for the existing portfolio as well as for the new accounts), collection entrance parameters, servicing and collection strategies among other operating levers.

Conduct a portfolio segment sale. One possible outcome of the portfolio analysis, depending on the issuer’s outlook, may be to sell a segment of the portfolio which effectively transfers a disproportionate share of the total portfolio credit risk. While this type of pruning is not always possible, the current market appetite for consumer credit risk makes this a feasible strategy. (A recent example is Barclaycard US’ reported sale of $1.6 billion worth of subprime credit card receivables to the Credit Shop this year.)

These are just a few of the possible avenues to explore in the current environment.  Auriemma has a deep institutional memory about prior challenges and the creative ways in which successful issuers responded.

Ultimately, the strategy selected may be less important than the quality of the portfolio review; a strategy premised on a superficial analysis may be more dependent upon luck than execution. If, after a thorough portfolio review, an institution concludes that no change is needed, that may be a viable choice made with eyes wide open.  Heading into a challenging credit environment, however, it’s safe to say that inertia without analysis is hardly a wise choice.

About Auriemma Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space.  We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines.  For more information, contact John Costa at 212-323-7000.

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Prepaid Card Issuers Can Benefit from Integrating Offerings with P2P

(New York, NY):  Older millennials are increasingly eschewing cold hard currency for budget-friendly alternatives, considered to be even more secure than credit, debit, and store cards. This older millennial population, and other desirable demographic groups, are increasingly turning to P2P payments and reloadable prepaid cards when transferring funds. In fact, over one-third of cardholders have used P2P payments (42%) or a reloadable prepaid card (36%), according to a new study from Auriemma Group, which was conducted in partnership with the Network Branded Prepaid Card Association (NBPCA). The study highlighted use cases for P2P payments and prepaid among the banked population, shedding new light on who uses them and why they are an attractive payment alternative.

The results point to an opportunity for prepaid card issuers to integrate their offerings with P2P to better capture market share. The commonalities between these user groups make a compelling case. Most current P2P payment users and prepaid cardholders are male (57% and 53%, respectively), college-educated (62% and 53%), parents of minors (56% and 50%), and report a household income over $50,000 (67% vs. 55%). While these attributes register most strongly with the P2P payment users, their similarities highlight the connection between both groups.

“Our previous research tells us that those who use P2P payments are about twice as likely to currently hold a prepaid card than their non-using counterparts,” said Jaclyn Holmes, Director of ACG’s Payment Insights. “This cross-section of users could create increased engagement with prepaid cards should they be accepted by P2P payments.”

Users of both prepaid cards and P2P payments are more than just demographically similar. When looking at the perceived benefits of both methods, users of each report comparable advantages, namely security, budgeting, and convenience.

Reloadable prepaid cards are a particularly attractive payment alternative for consumers for whom security and budgeting are top of mind. Despite having a banking account, those who have used prepaid cards believe the most beneficial aspects are that they don’t link to a bank account (44%), offer a secure payment method (33%), and help with budgeting (33%). Prepaid cardholders aren’t the only ones who think the method is secure—most consumers believe prepaid cards are more secure than credit (59%), debit (60%), and store cards (58%). And unlike cash, prepaid cards bring these benefits to the digital shopping experience.

“The payment method allows cardholders to purchase online worry-free, as doing so will not compromise their checking account,” said Holmes. “And prepaid cardholders can set limits for category or everyday spend, allowing them to more easily maintain a budget.”

The perception of security is also high with P2P payments. Although users have a more positive impression of the method’s security than non-users, both believe the method is secure (88% and 65%). And this isn’t the method’s only similarity to prepaid cards.

“A small group of consumers utilizes P2P as a budgeting tool,” Holmes said. “About half of those who leave money in their P2P account do so because it helps them save money.”

Convenience and speed also earn top marks with P2P, with about nine in ten users reporting P2P payments make it easier to pay people far away (92%), that payments clear faster than checks (90%), and that splitting checks or bills is easier (87%).

“It’s safe to say we aren’t moving towards a cashless society, but we are certainly using less cash than before,” Holmes said. “By themselves, P2P payments and prepaid cards provide more flexibility, convenience, and a greater sense of security.”

The collaboration with the NBPCA marks the first time ACG has partnered with an industry association to conduct custom consumer research and signals ACG’s ongoing commitment to work with industry associations to illuminate solutions in an evolving environment.

“The findings of this study affirm what we in the industry have long known, that consumers turn to prepaid for the security and convenience the products provide,” said Brian Tate, president and CEO of the NBPCA. “From budgeting to safety to digital access to funds, it is clear that prepaid products are meeting the needs of our consumers, and prepaid providers will continue to build on the long tradition of evolving our products to continue to do so in the future.”

While this study focused on the banked population, a potential future study may focus on the unbanked population.

Survey Methodology

This study was conducted online within the US by an independent field service provider on behalf of Auriemma Consulting Group in March 2017, among 800 debit cardholders. The purpose of this research was not disclosed nor the criteria for qualifying. The average interview length was 20 minutes.

About Auriemma Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space. We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines.  For more information, contact Jaclyn Holmes at (212) 323-7000.

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Auriemma Consulting Group and NBPCA Collaborate on Prepaid Consumer Research for Power of Prepaid Conference

(New York, NY):  Auriemma Group will present consumer research conducted in partnership with the Network Branded Prepaid Card Association (NBPCA) at the Power of Prepaid conference, scheduled for June 21 – 23 in Washington, D.C.

The keynote session, scheduled for 8:00 – 8:30 a.m. on Friday, June 23, focuses on consumers’ shifting attitudes and usage patterns of prepaid products, and will provide attendees with a first look at ACG consumer research developed in partnership with the NBPCA. Jaclyn Holmes, Director in ACG’s Payments Insights practice, will discuss the data in a fireside chat with Loraine DeBonis, Editor-in-Chief of Paybefore.

Designed to better understand the prepaid landscape in the current regulatory environment, this consumer-focused study explores a wide range of timely topics, from fee structure to the perceived value of prepaid in comparison to a checking account.

“While prepaid cards can be used as an alternative for traditional banking products, the data suggests the product’s utility has a far reach,” Holmes said. “Prepaid cardholders are an especially unique group of consumers, and the findings help to understand their motivations for usage.”

Attendees will get insight into the best ways to drive prepaid usage, as well as how to best position prepaid’s value to customers. Findings within the data include:

  • The surprising ways in which consumers are using prepaid cards
  • Untapped opportunities to better communicate and position prepaid’s strengths to consumers
  • How to combat barriers to initial usage

“Understanding how consumers view and understand prepaid products allows issuers to determine how to best navigate through the new regulatory landscape,” Holmes said. “This research will provide attendees insights from the consumer’s perspective that they draw upon as they make critical product and marketing decisions moving forward.”

This collaboration marks the first time ACG has partnered with an industry association to conduct custom consumer research and signals ACG’s ongoing commitment to work with industry associations to illuminate solutions in an evolving environment.

Prepaid providers attending the Power of Prepaid conference can book a one-on-one meeting with ACG to discuss how the consultancy’s research and advisory work can help acquire more customers, and operate more effectively.

About Auriemma Group

Auriemma is one of the most recognized and respected boutique providers of advisory consulting services to the Payments, Lending, and Retail industries.  Our rich history of engaging with Retailers started 30 years ago, with the introduction of the first co-brand credit card program.  The work we do with Retailers in the context of Payments has helped them tangibly improve customer acquisition, retention, service, and loyalty.  Our range of services includes Industry Roundtables (best practices and benchmarking), Partnerships (co-brand and private label), Corporate Finance (transaction advisory), and Payment Insights (consumer research).

About the NBPCA

The Network Branded Prepaid Card Association (NBPCA) is a non-profit, inter-industry trade association that supports the growth and success of network branded prepaid cards and represents the common interests of the many players in this new and rapidly growing payments category. For additional information, visit www.NBPCA.org, or follow on Twitter @NBPCA.

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Co-Brand and PLCC Programs Are Crucial to Driving Omnichannel Loyalty

(New York, NY):  As consumers migrate from brick-and-mortar stores to online shopping, merchants have turned to omnichannel strategies and experiences to bolster loyalty and retention.

But consumers’ behavior has become increasingly fragmented: In the quest for deep discounts and convenience, allegiance to one particular merchant has taken a backseat.  In this environment, a key question facing merchants is what the future of shopper loyalty looks like, and how they can best position their offerings and experiences to capture it.

To answer it, merchants are increasingly turning to payments – an oft overlooked component of the shopping experience that can unlock store traffic, sales, and long-term brand loyalty.

“Increasingly, merchants are re-thinking the way co-brand and PLCC programs can deepen consumer loyalty,” said Gary Rezak, a director in Auriemma Consulting Group’s Global Partnerships practice. “These programs have the power to increase omnichannel productivity, boost in-store visits and drive new behaviors.”

The evidence that a card program can stimulate positive shopping behaviors is mounting, with 30% of co-brand and private label cardholders saying they spend more at the related and 73% reporting they feel more loyal to the related merchant, according to Auriemma’s February issue of Cardbeat®.

Here are other loyalty indicators well-executed programs can deliver to merchants:

  • More in-store visits. Even as store footprints shrink, garnering in-store visits is still king among retail performance metrics. Generally, cardholders have higher shopping frequency and larger average order sizes than non-cardholders. With more price competition than ever before, special sales events and mail-order coupons often do not achieve the same sales lift as they did historically. But card programs can provide a reason to return to the store – again and again. If a cardholder returns to the store just once early in its cardholder relationship, he or she is far more likely to return later: 30% of co-brand and private label cardholders say they’ve increased their spending with the retailers since getting the card, according to Auriemma’s Cardbeat research.

 

  • More special experiences. Perks and VIP experiences for cardholders, such as dressing room reservations, free alterations and special access to cardholder-only events are increasingly successful in generating in-store traffic and engagement. Look for an increasing focus on soft benefits, brand partnerships, personalized delivery, “surprise-and-delight” offers and special events embedded in value props going forward. And encouraging cardholders to “unlock” such perks could also be effective: When cardholders are given the opportunity to unlock richer rewards with increased spend, 25% say they spend enough to hit the reward threshold, according to Auriemma’s Cardbeat research.

 

  • More cross-channel sales. Consumers who shop in all three channels – store, online and mobile – are often the most profitable. Driving top-of-wallet behavior is crucial for online and mobile shopping, particularly without a store employee to remind the cardholder of the benefits. Knowing that your online or mobile shopper is an existing cardholder is a critical component of generating top-of-wallet spend. More retailers will begin requiring known customers to create log-ins for online check-out. While the sign-up process may be an initial speed-bump, its overall benefits, including prompting existing cardholders to use their card for savings or free shipping, is invaluable to drive spend without disrupting the check-out process.

 

  • More cross-over customers from non-tender loyalty programs. The value of loyalty programs is two-fold: data capture and targeted marketing. Increasingly, merchants are leveraging loyalty programs to screen and pre-approve potential credit-worthy applicants. However, there is potential for cannibalization between the two programs. (According to Auriemma’s Cardbeat research, 53% of cardholders enrolled in both a credit and non-tender program believe the rewards between both programs are the same.) Merchants can break this pattern by ensuring both programs have distinct value propositions with calibrated richness. In addition, enrollment in both programs can be highly attractive to customers, and increase in-store visits, if consumers can multiply rewards to accelerate their redemption opportunities in-store.

 

“Even in a challenging environment, there are numerous opportunities for merchants to break through the clutter, communicate compelling messages and engender more loyalty,” said Diana Middleton, Director of Auriemma’s Brand Partner Roundtable, an information-sharing group for senior retail payment executives. “As customers change the way they shop, merchants must ensure they have laid the groundwork to be the top-of-wallet tender for any transaction in any channel.”

About the Brand Partner Roundtable

Open exclusively to brands, including retailers and T&E partners, the Brand Partner Roundtable focuses on designing and executing card programs that benefit members’ core retail business. Discussions give participants the tools and information they need to improve their program’s value proposition and acquisition strategy, eliminate fraud, and fine-tune mobile and digital enhancements.

About Auriemma Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space. We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines. For more information about Industry Roundtables, contact Tom LaMagna at (212) 323-7000.

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Auriemma to speak at Two Co-Brand Conferences in May 2017

 

Auriemma Group will have co-brand-focused speaking roles at two separate conferences in May 2017.

Marianne Berry, Managing Director of ACG’s Payments Insights practice, will be presenting at CARD Forum’s Co-Branding Opportunities track on Tuesday, May 9th from 3:15-3:55 p.m. Using proprietary consumer research, Berry will share information on the consumer lifecycle of retail-oriented cards, specifically co-brand and private label, examining everything from acquisition to rewards redemption.

Attendees will learn about the demographics of retail-oriented card users, how retail cards are acquired, how to increase loyal, top-of-wallet usage, how to motivate activity on infrequently or unused retail cards and which benefits consumers prize most highly.

“In the retail environment, leveraging a retail-oriented card for greater consumer spend and brand loyalty is paramount,” Berry said. “This presentation will share how the consumer thinks about benefits and redemption options, as well as the offers that can overcome the ‘one-and-done’ phenomenon that stands in the way of loyal usage.”

Gary Rezak, Director in the Auriemma Global Partnerships practice, will speak on a panel at the third annual Co-Brand Conference produced by Airline Information. The session, scheduled for Tuesday, May 23rd, will focus on interchange, mobile wallets, and other key industry topics. The panel will be moderated by Madeleine Anderson, a former British Airways senior loyalty marketing executive.

“This session’s focus will arm portfolio managers with best practices on how to interpret the key industry trends that have implications for their programs,” Rezak said.

Auriemma’s presence at these co-brand-focused events is a testament to its long history in transaction advisory and consumer research centered on the co-brand space. In addition to traditional advisory services, Auriemma’s co-brand offerings provide a 360-view of the space, including ongoing work in improving portfolio profitability and increasing consumer usage.

Brands and issuers attending these conferences can book a one-on-one meeting with Auriemma speakers to discuss how the consultancy’s research and advisory work can aid in acquiring more customers, generating greater spend and creating deeper consumer loyalty.

About Auriemma Group

Auriemma is one of the most recognized and respected boutique providers of advisory consulting services to the Payments, Lending, and Retail industries.  Our rich history of engaging with Brands started 30 years ago, with the introduction of the first co-brand credit card program.  The work we do with Retailers in the context of Payments has helped them tangibly improve customer acquisition, retention, service, and loyalty.  Our range of services includes Industry Roundtables (best practices and benchmarking), Partnerships (co-brand and private label), Corporate Finance (transaction advisory), and Payment Insights (consumer research).

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Auriemma Launches CAMBER, a Searchable Research Portal

(New York, NY):  Auriemma Group’s consumer studies will now be more widely and immediately accessible to its subscriber base, thanks to CAMBER, a newly developed searchable research portal.  This new self-serve option gives subscribers greater accessibility to Auriemma’s research—Cardbeat®, Cardbeat UK, The Payments Report, and Mobile Pay Tracker.

Subscribers can search through research published since 2015 and download abstracts as well as full issues within the company’s subscription. As a new offering, CAMBER brings the subscriber experience into the digital age without replacing the high-touch, personalized service subscribers have come to expect from Auriemma.

Self-serve: Subscribers now have a library at their fingertips, shortening the lag time between request and receiving relevant data.

Digital access: Finding relevant payments data is more convenient than ever, with more visibility into the subscribing company’s publications. In addition, subscribers will be able to view abstracts of all research publications, including topics their company may not currently subscribe to.

New search capabilities: Users can now search with more granularity across hundreds of data sets and reports, with topics spanning rewards cards, mobile payments, top-of-wallet selection and more.

This is the first stage in a multi-year digital roadmap for Auriemma publications. Future iterations will include enhanced search functionality, a topic request wizard, and webinar downloads.

About Auriemma Group

Auriemma is a boutique management consulting firm with specialized focus on the Payments and Lending space. We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines. For more information, contact Jonathan O’Connor at 212-323-7000.

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