CINCINNATI-For the first time, U.S. credit card reward program members outnumber airline frequent flyers, according to COLLOQUY, a provider of loyalty marketing publishing, education and research.
COLLOQUY's 2009 U.S. loyalty marketing census shows membership in U.S. financial services rewards programs has reached 422.0 million, a 77% increase since COLLOQUY's 2007 census, vaulting financial services past airline frequent flier programs as the economy's largest market for loyalty programs. Airline loyalty programs count 277.4 million members.
With the dramatic growth in recent years, the banking crisis and the recession, COLLOQUY predicts financial services reward program membership will experience slow growth in the coming years. The American Express decision to pay unprofitable cardholders $300 to close accounts is emblematic of the new reality, COLLOQUY says.
The company also cites regulatory changes that may affect reward program budgets, portfolio consolidation and card issuers exiting the business.
"Card issuers will turn from growing their portfolios to retaining their most profitable and credit-worthy customers," said COLLOQUY Editorial Director Rick Ferguson.
For info: www.colloquy.com
