When it comes to a customer’s credit card satisfaction and spend, rewards and benefits play a big role, according to the results of the J.D. Power 2015 U.S. Credit Card Satisfaction Study, released today.
This year’s rankings saw Discover taking the top spot for consumer satisfaction among credit card issuers for the first time in the nine-year history of the study, after tying for first place last year with American Express.
According to J.D. Power, Discover’s focus on the customer and effort to enhance its reward redemption process resulted in the issuer performing well across the study’s six factors.
Earlier this year, Discover launched a boost to its rewards program for new cardmembers, offering double the cash rewards earned at the end of their first year. The deal was further sweetened with no limit or expiration.
“Reward redemption and benefit use have a tremendous impact on the customer experience,” Jim Miller, senior director of banking services at J.D. Power, said in a company release announcing the study results. “The fact that Discover ranks highest in satisfaction among all credit card issuers in each of the six factors measured in the study is a testament of the relentless focus and importance the company has placed on the ease of redemption and use of benefits. When customers feel the rewards are attractive and when they redeem rewards more frequently, satisfaction improves, they spend more and they are more likely to recommend the card to friends and family.”
In the J.D. Power study, customer satisfaction is measured by examining interaction, credit card terms, billing and payment, rewards, benefits and services and problem resolution, with the factors listed in descending order of importance.
A little over half of respondents (52 percent) said the reason they selected their new credit card was due to the rewards program offered, while 24 percent made their selection based on increased benefits.
The study also found that in this year’s survey, credit card customers are redeeming the rewards and benefits they earn more frequently.
In the past six months alone, 53 percent have already redeemed some type of reward from their credit company, compared to 49 percent in 2014.
J.D. Power’s 2015 U.S. Credit Card Satisfaction Study includes responses from more than 20,000 credit card customers, which were fielded from September 2014 to May 2015.
In response to the top spot ranking, chairman and CEO of Discover Financial Services David Nelms said: “The recognition by J.D. Power as a leader in customer satisfaction with credit card companies in the U.S. would not be possible without our tremendously loyal cardmembers. Discover has all of its call centers here in the United States, and our employees pride themselves on creating the best possible experience for our cardmembers.”