Last updated on April 13th, 2023
Credit cards are an essential part of everyday life for millions of Americans. With credit cards comes the need for customer service, due to fraud, mistakes, and other issues. A new study highlights just how vital credit card customer service is – and how it can actually entice consumers to change their card preferences.
Credit Cards and Customer Service
According to research from the payment industry website, PYMNTS, better customer service may be the key to luring new customers from their current credit card to a new credit card offer. Data shows that approximately 28% of consumers would seriously consider changing cards to a company with excellent customer service.
Millennials are the age group most likely to switch allegiances based on good customer service. The study found that 43% of millennials are “extremely likely” to switch to a company with excellent customer service.
The study, Delivering Cardholder Customer Service Report, also indicates that the most pressing issues customers face with customer service include billing and statement questions, fraud, and other serious concerns. In addition, 80.9% of consumers contact representatives via phone, surpassing chat and email significantly. Those who felt their experience was handled poorly were most likely to say they’d consider switching card issuers.
Customer Service and Coronavirus
Due to the coronavirus pandemic, customer service has taken on a new dimension. Keeping customers up-to-date with relevant information is just one facet of retaining cardholders. No sector of the credit card space has struggled more due to COVID-19 than airline rewards customers.
Due to a severe decline in air travel, many airlines are struggling to retain cardholders. As a result, some, like United, are changing the ways users can spend miles. This includes helping them offset the high annual fees that come with membership for their cards.
Discover Is an Example of Customer Service Excellence
When discussing customer service, the first name that often pops up is Discover. Discover is known for its exceptional customer service, offering U.S.-based representatives and fast, courteous service. The quality of their customer care continuously gains praise. The company also frequently ranks highest in customer satisfaction by J.D. Power & Associates.
Maintaining Customer Satisfaction Is Critical
Regardless of the means, it’s certain that customer service will play a critical role in how companies attract new consumers well into the future. From coronavirus relief to unique distractions to special rewards, keeping the customer happy takes a lot of effort. But it’s effort that pays long-term dividends.
Related Article: Banks Are Lowering Credit Limits As Coronavirus Impacts Economy