Abstract
Despite a general slowdown in technology spending over the last six months, consumer credit card
issuers have continued to invest in online self-service. "Capturing the Online Customer:
Current and Future Investments in Self-Service," identifies these recent investments in
self-service by issuer and feature. The report highlights the strategic benefits of adding
self-services and benchmarks leading issuers in self-service adoption.
"Online self-service is a rare win-win for credit card issuers and their customers. Card
issuers reap the benefits of reduced average transaction costs and increased opportunities to grow
organically while customers see improved account access and faster, more consistent, service
resolution." according to Michael Friedman, Senior Analyst in Mercator Advisory Groups
Emerging Technologies Service and author of the report.
The report identifies the four distinct benefits self-service features offer to issuers. Though
well documented, the savings afforded to issuers in terms of average cost per service transaction
from self-service are substantial and cannot be ignored. Second, self-service features help issuers
to grow organically through cross- and up-sell opportunities. In addition, revenue is generated
through the sheer availability of services like balance transfer requests and credit limit
increases. Third, self-service features can improve customer loyalty by making sites more sticky.
Finally, in an industry not used to competing on service, the best self-service features may allow
issuers to steal and retain highly prized online customers.
The report examines both the current and historic pattern of self-service investment with an eye
towards business goals. Online self-service has traditionally focused on cost-savings service
features as opposed to those offering revenue generating possibilities. Furthermore, features which
lead to online migration, a significant bottleneck in the process of moving customers online, are
less interesting to issuers based on investment trends.
Table of Contents
- Table of Contents 2
- Index of Figures 2
- Introduction 3
- Defining Online Self-Service 6
- The Case for Online Self-Service 8
- The Effectiveness of Online Self-Service 11
- Self-Service Today 13
- All Self-Service Features are Not Created Equal 15
- Current Investments in Web-Based Self-Service 16
- Online Card Activation 17
- Credit Limit Increase and Balance Transfer 18
- FAQ 19
- Whats Next for Self-Service? 20
- Beyond FAQs 20
- Online Delinquency Curing 21
- Conclusion 26
Index of Figures
- Figure 1: Self-Service Features per Major issuer (list of features on page 6) 9
- Figure 2: Effectiveness of Issuers to Encourage Online Migration 12
- Figure 3: Prevalence Among Major Issuers of Specific Online Self-Services 14
- Figure 4: Issuer Investments in Web-Based Self Service 16
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