Released on: July 7, 2008, 3:36 am
Press Release Author: Barclaycard
Industry: Financial
Press Release Summary: Barclaycard was the most powerful credit card brand in the UK 2007 according to the latest Issuer Brand Index
Press Release Body: Barclaycard was the most powerful credit card brand in the UK in 2007 according to the Issuer Brand Index (IBI) monitored in Cardbeat, a syndicated market research tracking study run by the Auriemma Consulting Group (ACG). This study considers the strength of the brand to be driven by a combination of card ownership and usage, perceived brand quality, brand awareness, and general brand characteristics. The study evaluates the strength of 17 top UK credit card brands.
Highlights from the latest study include:
- | Barclaycard
reported as the most powerful UK credit
card issuer brand beating Capital One into second
spot. Barclaycard's top position came as a result of
having the highest brand awareness and second highest card usage ratings
in our study. Wide card ownership also contributed to Barclaycard capturing
the number one spot. |
- | Lloyds
TSB’s customers have higher outstanding balances and use
their card more for purchases than any other brand included in the study. |
- | Marks
and Spencer’s card brand holds the top spot driven by perceived
high quality and general brand characteristics but languishes at number
11 spot in the research due to its low card usage and moderate brand awareness. |
- | Egg’s
card brand was at number 3 in terms of general brand characteristics,
just behind the Co-op and Marks & Spencer’s card brand. |
- | MBNA
and Barclaycard’s card brands are joint first in
card ownership market share but there is a marked difference in usage
and brand awareness. |
- | The
least widely held card brand tracked in the study was issued by the Post
Office |
Matt Simester, Director at Auriemma Consulting Group commented, "As the credit crunch continues to dominate the consumer agenda, a powerful brand is critical to maintaining high quality recruitment and retention. While consumers with a poor credit history will find it hard to move issuer, those with stronger credit histories will demand better quality propositions from their current provider. Pressure to reduce costs of servicing, higher average APRs and lower investment into marketing may also impact perceived brand quality this year. I anticipate that there will be a different set of winners and losers at the end of 2008."
About
Barclaycard
Barclaycard is a multi-brand credit
card and loans business which also processes card payments for retailers
and merchants and issues charge and credit
cards to corporate customers and the UK Government. It is one of Europe's
leading credit card businesses and has an increasing presence in the United
States.
In the UK, Barclaycard comprises Barclaycard, Sky Card, Thomas Cook and Argos branded credit cards and FIRSTPLUS secured lending. Barclaycard also manages card operations on behalf of Solution Personal Finance.
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Issuer
Brand Index Methodology
The Issuer Brand Index is designed to capture brand strength
of top UK card issuers in 4 separate categories:
Card Usage - Captures share of usage in terms of spending volume
and reported outstanding balances
Brand Awareness - Represents familiarity with the issuer’s
brand name
Quality - The perceived quality of the product and customer
service provided
Brand Characteristics - perceptions of the brand by both existing
customers and non-owners
Web Site: http://www.barclaycard.co.uk/
Contact
Details: Barclaycard PR contact:
Andrew Bond
Barclaycard Press Office
Barclaycard
1234 Pavilion Drive
Northampton
NN4 7SG
01604 251229