Credit cards can provide Retailers superior Consumer insight!!
Posted by Ajay Kelkar on Wed, Feb 03, 2010
Credit card retail spend data is also so valuable for Retail merchants but I do not see any concentrated initiative from any bank in India to use this data as a strategic differentiator.
Already credit card as a % of total sales would be 50% or more, for at least the department store category of Retailers. If I were a Retailer, I could use this information to profile my regular customer base far better-they may not be loyalty program members, it’s just that their credit card number tells us that they are repeat customers for the retailer.
So clearly there is an opportunity for Indian banks to provide retailers more insight and on the back of that build larger spends and revolves on their cards with that merchant establishment. American Express has traditionally been good at this. Only a few months after American Express announced its Business Insights solution for consumer data analytics and consulting, MasterCard Advisors has now launched “Merchants Solutions”, their response to the growing number of payment services companies that offer data on their customer’s purchases to marketers.
Read more about this at
http://www.dmnews.com/amexs-new-division-displays-value-of-data/article/159487/