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Background, Objectives, & Methodology Detailed Findings Appendix
Background,Objec1ves&Methodology
Background&Objec1vesOnJune20Costcowillnolongerbeaccep6ngAmericanExpresscardsandwillstartaccep6ngVisacreditcards.CurrentCostcoAmexcardholderswillautoma6callybeissuedaCostcoAnywhereVisaCardbyCi6asareplacement.WhilethenewcardoffersaBrac6vebenefits,therewards,intheformofavoucherthatcanberedeemedforcashorCostcomerchandise,willbeissuedonlyonceayearinFebruaryfortheprioryear’srewards.Thesevoucherscanonlyberedeemedin-personataCostcowarehouseoutlet.
NavyFederalwasinterestedinunderstandinghowmembersfeelaboutthepoten6allylongwaittoreceiverewards(cashbackearnedinJanuary2017won’tbeawardedfor13months)anduseofavoucherratherthandirectdeposittoacheckingorsavingsaccount.
Specificareasofinquiryincluded:
§ Wouldmembersratherreceivecashrewardsdepositeddirectlyintotheiraccountorhaveavoucherthatneedstoberedeemedataspecificretailer?
§ Wouldtheypreferreceivingtheirrewardsonceayearorastheywereearned?
Methodology• 10-minuteonlinesurvey
• Fielddates:May31-June7,2016
• Samplesize:1,204NavyFederalmembersaged18andoverwhohaveamajorcreditordebitcard.
– Respondentsweredrawnfromlistsofmemberswholivewithina15-mileradiusofaCostcowarehousestore.
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DetailedFindings─RewardsRedemp1on─
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Detailed Findings Background, Objectives, & Methodology Appendix
TypeofRewardsPreferred
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Q:Whetherornotyoucurrentlyhaveacreditcardthatearnsrewards,whattypeofrewardsdo/wouldyouprefer?Base:Totalrespondents.(n=1204)
› Respondentswouldoverwhelminglyprefertoreceivecashrewardsfromacreditcardthatearnsrewards.
MostPreferredReward
(Ranked#1)Cash 61%Travelrewards 18%Gidcardsthatcanbeusedanywhere 14%Merchandise 3%Gidcardsforaspecificretailer 3%Merchandisefromaspecificretailer 2%
Detailed Findings Background, Objectives, & Methodology Appendix
PreferredMethodforRewardRedemp1on
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› Easeofredemp6onforcashrewardswasparamountformostmembers.
› Almostnoonepreferredreceivingavoucherredeemableataretailstore.
Q:Howdo/wouldyouprefertoreceivecashrewards?Base:Totalrespondents.(n=1204)
Directdeposittocheckingor
savingsaccount81%
VisagiLcardsentinthemail
18%
Voucherthatneedstobe
redeemedataretailstore1%
PreferredRedemp1onMethodforCashRewards
Detailed Findings Background, Objectives, & Methodology Appendix
DesiredFrequencyforReceivingCreditCardRewards› Desiredfrequencyforreceivingcreditcardrewardsvariedamongrespondents.
› Whatisclearisthatfewpeoplewouldbesa6sfiedwiththeprospectofreceivingrewardsonlyonceayear.
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FrequencyforReceivingRewards
Q:Howfrequentlydo/wouldyoupreferreceivingyourcreditcardrewards?Base:Totalrespondents.(n=1204)
Detailed Findings Background, Objectives, & Methodology Appendix
38%
29%
23%
11%
Atmyrequest Monthly Astheyareearned Yearly
DetailedFindings─ImportanceofNetwork─
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Detailed Findings Background, Objectives, & Methodology Appendix
generallylookingformore“op6ons”especiallyincasetheirVisacardisnotacceptedbyamerchant.
ImportanceofCreditCardNetwork CurrentVisacardholderswereaskedwhethertheywouldwanttheirnextcreditcardtobeanotherVisacardoronefromadifferentnetwork.
› Slightlymorethanhalffeltthenetworkdidn’tmaBer.
› Onlyone-in-tenwouldwanttheirnextcardtobefromadifferentnetwork.
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WhetherorNotNextCardWouldBeaVisaCard
Q:IfyouweretoapplyforanothercreditcardwouldyouwantittobeaVisacardoracreditcardfromadifferentnetwork?Base:Visacreditcardholders.(n=808)
Generallylookingformore“op6ons”especiallyincasetheirVisacardisnotacceptedbyamerchant.
TheseVisacardholderssaytheyare“comfortablewiththe[Visa]productandservices,”likethatthecardisaccepted“everywhere”andthatit’sjustwhattheyareusedto.
Thosewhodon’tcarewhichnetworktheirnextcardisfromgenerallyfallintotwogroups:• ThosewhoseenodifferencebetweenVisaand
MasterCard.• Otherswhofeelthatinterestrateand/or
rewardsaremoreimportantintheirchoiceofacardthanthenetworkitisaffiliatedwith.
“Visa,MasterCard–what’sthedifference?”
“I’mgoingtolookforthebestdealforme.”
“Itisirrelevanttome…MasterCardorVisa.Itismoreabouttheprogramandinterestrateassociatedwiththecard.”
Detailed Findings Background, Objectives, & Methodology Appendix
Op1malNumberofCreditCards› Memberswereaskedhowmanycreditcardstheythoughtpeopleshouldown.
› Averagenumberwas2.6
› Thisissimilartotheactualnumberowned.
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Op1mumNumberofCreditCards
NumberofCreditCards
OwnedNone 2% 7%1 15% 21%2 40% 24%3 25% 17%4 9% 13%5ormore 9% 19%Mean 2.6 2.5
Q:Regardlessofwhichnetworktheyarefrom(Visa,MasterCard,AmericanExpress,etc.),howmanycreditcardsdoyoufeelistheop6mumnumberpeopleshouldown?Q.Intotal,howmanycreditcardsdoyoupersonallyown?(Creditcards–allowsyoutocarryabalancefrommonthtomonth)Base:Totalrespondents(n=1204)
Detailed Findings Background, Objectives, & Methodology Appendix
CostcoPaymentMethods› Costcoshoppersgenerallyusethesameformofpaymentevery6metheyshopatthewarehousestore.
› WiththechangefromAmextoVisacomingthismonth,manyoftheCostcoshopperssurveyedan6cipatechangingtheirmethodofpayment.
› Thebiggestchangewillbeanincreaseintheuseofcreditcardsfromlessthanhalftoovertwo-thirdsofmembers.
› AlthoughCostcoAmexcardholdersarebeingswitchedtoCostcoVisacards,significantlyfewerplantousethenewCostcoVisacardthenusedtheirCostcoAmexcardwhenshoppingatCostco.
CurrentlyPay(allmethods)
CurrentlyPayMostOLen
ExpecttoPay(allmethods)
Debitcard 49% 44% 42%Totalcreditcard 44% 40% 70%↑CostcoAmex/Visacard 29% 26% 22%↓OtherAmex/Visacard 16% 14% 55%↑Cash 23% 8% 18%↓Check 13% 8% 10%CostcoCashcard 1% - 1%
Q:WhenyoushopataCostcowarehousestore,howdoyoupayforyourpurchases?Q.Howdoyoupaymostoden?Q.HowdoyouexpecttopayforyourpurchasesatCostcobeginningJune20?↑↓Significantlyhigher/lowerthanCurrentlyPay(allmethods)95%confidencelevelBase:PastthreemonthCostcoshoppers(n=531)
Detailed Findings Background, Objectives, & Methodology Appendix
CardOwnership
Averagenumberofcreditcardsowned 2.5
Averagenumberofdebitcardsowned 2.1
AnyVisacreditcard 67%
Anydebitcard 59%
CostcoAmericanExpresscard 7%
Age
RespondentProfile
13
63%
33%
Male
Female
29%
29%
38%
4%
65andover
55-64
35-54
18-34
ShoppedatCostcopast3months 44%
Gender
Appendix Background, Objectives, & Methodology Detailed Findings
Base:Totalrespondents(n=1204)
SampleReliability
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Appendix Background, Objectives, & Methodology Detailed Findings
SampleSize 10%or90% 20%or80% 30%or70% 40%or60% 50%1,000 2 2½ 3 3 3
800 2 3 3 3½ 3½
500 2½ 3½ 4 4½ 4½
300 3½ 4½ 5 5½ 5½
200 4 5½ 6½ 7 7
100 6 8 9 9½ 10
50 8 11 12½ 13½ 14
FindingsbasedonasampleofNavyFederalmembersaresubjecttosomeerror.Thefollowingtableshowstheapproximatesamplingtolerancesforvariouspercentageresultsatthe95percentconfidencelevel.Forexample,ifweconsideraresultof60percentbasedonthetotalsampleofmembers(N=XXXX),wecanbe95percentsurethatthetrueresultiswithintherangeofthreepercentagepointsaboveorbelowthesampleresult(thatis,withintherangeof57%to63%).Thepossiblesamplingerrorisgreaterwhenevalua6ngpercentageresultsforsubgroupsofthetotalsample.ApproximateSamplingTolerancesforSurveyPercentageatorNearTheseLevels
SampleComparisons
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Appendix Background, Objectives, & Methodology Detailed Findings
Asta6s6caldifferencebetweengroupswithinanyonesamplemustalsobeaminimumsizetobesignificant.Thetablebelowisaguidetotheapplicablesamplingtoleranceswhencomparingresultsforsubgroupsofthetotalsample.• Forexample,intwoseparatesamplesof500,ifanobservedpercentagedifferenceis6ormorepointsatthe50%results
area,thechancesare95in100thatitisatruedifferenceandnotduetochancealone.
• Intwoseparatesamplesofunequalsizes,e.g.,500and100,apercentagedifferenceof11pointsormoreatthe50%resultsareawouldhavetoobservedbeforewecouldbe95%certainthatthedifferenceistrueandnotduetochancealone.
DifferencesRequiredforSignificanceatorNearThesePercentageLevels
SizeofSamplesCompared 10%or90% 20%or80% 30%or70% 40%or60% 50%1,000and1,000
750500100
3336
4448
4459
45510
45510
500and500300200100
4466
5679
67810
67811
67811
300and30020010050
5579
67912
781014
891115
891115
200and20010050
679
81012
91114
101215
101215