This first-of-its-kind, comprehensive Acxiom study, "Cashing in on Changing Payment Preferences: How Cards and Payments Marketers Can Become Top of Wallet with Potential Switchers," provides marketers with concrete, actionable recommendations on how to attract and retain customers through personalized marketing, leading to better performance and less wasted effort.
Using data and insight into nearly 3,000 consumers' primary payment choices -- credit cards, debit cards, paper checks or cash -- the report identifies their willingness to switch payment methods and why; and how demographics, life stage and other personal circumstances affect their decisions.
"The choice of how to pay for a purchase is personal, and is based on a combination of rational and sometimes irrational decision-making. But most financial product marketing fails to connect to individual needs and interests," said John Albrecht, managing director for Acxiom's Banking and Payment Services group. "The study's findings will help these marketers influence target audiences by demonstrating how multidimensional insights across shopping, purchase and attitudinal behaviors, can lead to greater success."
The survey, combined with Acxiom's Personicx demographic analysis, produced a wealth of information about potential payments switchers, including:
- 25% of respondents, who represent a potential of $700 billion in annual transactions, would consider switching payment method if benefits such as "help control spending" or "ease of record keeping" are highlighted in the messaging
- The age of your target is important, as most potential switchers are in the 18-44 group
- Travel purchasers represent one of the biggest opportunities with 26% of switchers whose primary payment method is a debit card saying they use a credit card for travel and 19% use a credit card when making a big-ticket electronics purchase
- Understanding specific influences, such as rewards or lower fees, allows marketers to create a more relevant and personalized offer tailored to the potential switcher and ideally suited to be made through addressable digital channels