Credit card attrition is, in simple terms, a reduction in credit card users for a company. Credit card attrition is enhanced by several factors. Some involve market conditions (changes in the economy) and some involve particulars at a specific company. In any case, reducing attrition and winning back customers requires strong action plans that are marketed specifically toward former customers.
Assemble a research team to conduct market research surveys. The purpose of these surveys is to gain information, not to recover lost customers. Most successful surveys are conducted with short phone interviews where interviewees are asked to rate your company's strongest and weakest areas.
Study the results of the surveys conducted. If you have a local financing business, you should call only former customers. However, for larger banks and lending institutions, the surveys should be spread nationwide and with varied demographics so as to get an accurate sample.
Look at the least positive areas based on surveys. It could be customer service, rates or limited programs. Whatever the factors, make sure to pay special attention to them when you begin designing an action plan.
Change your business model to adapt to growing attrition. This could mean lowering credit card rates temporarily (and taking a hit on your bottom-line) or it could mean making more introductory offers (with zero percent interest, for example). It may mean changing corporate values to focus more on consumers, not profits. If you gain more customers, profits will automatically follow.
Market any new strategies you are implementing. Do massive advertising campaigns to rebrand your company. This means direct mailings, newspaper, television and radio advertisements. Make sure to test each new campaign with a small test group with different demographics.
Track your attrition rate after you've made changes. If attrition still does not decrease, you'll need to review your strategies again.
