Overall consumer credit card satisfaction is at an all-time high, according to J.D. Powers ninth annual 2015 U.S. Credit Card Satisfaction Study. Discover took the top spot with consumers, after tying for the top spot last year. Their upswing this year was reportedly due to their focus on streamlining their rewards systems and high marks in all areas with consumers. American Express and Chase followed close behind in second and third place respectively.
The J.D. Powers report looked at six key factors, including interaction; credit card terms; billing and payment; rewards; benefits and services; and problem resolution. While all the factors were important rewards and benefits were trending with consumers.
“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, said Jim Miller, “senior director of banking services at J.D. Power.
It’s all about rewards and benefits
Why do people pick the credit cards they do? If you’re thinking rewards and benefits, you would be right, with 52% of people indicating that they decide which new card is the best bet for them based upon the rewards its offering and just about a quarter (24%) saying it’s the benefits.
When considering a card they look at, the kinds of rewards it offers, whether cash, miles or points, along with overall value of the rewards when it’s time to cash them in. With more than half (54%) saying that they rewards they get with their current cards are attractive, which is up from 46% last year.
With a high attractiveness factor comes a willingness to spend more each month, with those who see their rewards as a real bonus spending $1,132 on average each month, when compared with the $744 spent by people who rate their as being unattractive.
Redeeming rewards is up
This year, consumers have been redeeming their rewards at a faster pace than they have in the past, with more than half (53%) having done just that over the past six month, up from 49% last year.
People who redeem their points more often tend to have a higher satisfaction level when it comes to rewards. Individuals who have cashed in their rewards for everything from merchandise to travel over the past six months reported being more satisfied than those who haven’t done so for 6-12 months and those who have never used their rewards. Here too a higher satisfaction level translates into spending more ($1,128 vs. $645).
The J.D. Powers 2015 U.S. Credit Card Satisfaction Study was carried out from September 2014 to May 2015, using input from 20,000 cardholders.