PREPARE YOURSELF FOR SUCCESS!©

HOW to market a successful Chip Card program

There’s only one reality that you need to face: Competition is tough, and it’s getting tougher every day. Encourage a smooth chip card (EMV) conversion by matching your strategy to targeted cardholder segments

In a marketplace with shark infested waters, the only thing that will ensure success is a targeted cardholder segmentation.

The first hurdle you have to jump over is to have an idea that your cardholders think there is an exceptional value in. Do you have something that your cardholders will obtain and use?

You can provide additional value to your customers and boost global usage by converting existing credit or debit cardholders to chip cards.

Create a simplified communication to promote a chip card conversion. Then promote the 2 key value propositions

Avoid unnecessary declines where chip cards have or will become standard

Protect their finances with the chip card security benefits

1. 2.

You can facilitate a positive customer experience by using these key insights and recommended messages for your conversion marketing efforts.

Because each person is unique and has a different value perception, you can facilitate a positive customer experience by offering acceptance options . The 3 options are……

DOES ONE SIZE FIT ALL? Before creating your conversion communication, identify the conversion type that is best suited for your financial institution’s portfolio growth goals and your customer type.

Opt-In – Opt-Out – Auto Enroll

Source: Visa USA

Source: Visa USA

Source: Visa USA

UTILIZE A VARIETY OF CHANNELS & COMMUNICATIONS FOR AN EFFECTIVE CONVERSION

To optimize your conversion efforts, consider establishing a comprehensive communication plan to help you maximize adoption, limit attrition and improve the impact of your conversion

COMMUNICATION PLAN

Source: Visa USA

Follow these market proven insights for an impactful conversion messaging strategy

When converting existing cardholders, it’s essential that you communicate the important details clearly. Doing so can help increase cardholder satisfaction and retention while maximizing card activation and usage.

• Be clear & transparent about what is happening to avoid cardholder confusion

• Clarify the new card replaces the current one to drive acceptance and activation of the chip card

• Stress there are no additional costs (if applicable)

• Keep messaging simple and focused on primary benefits

• Clearly explain the account specifics that remain the same, including credit line, rate, PIN, etc.

• When converting a rewards card, make clear what happens to existing rewards

• If the account number will change as a result of the reissue, instruct them to notify any companies where they have recurring payments

• Opt-in/Opt-out conversions are most effective when cardholders receive pre-conversion communication

• Post-conversion messaging should focus on activation

• Reinforce the new card benefits Source: Visa USA

Use clear, direct messaging to give customers early notice of their conversion

PRE-NOTIFICATION MESSAGING

When notifying cardholders of an upcoming conversion, include messaging that instructs them on what to expect and the steps to take next. (sample messages next)

Opt-in Conversion: (sample)

Congratulations! You’ve been chosen to receive a complimentary, chip enhanced [your name debit/credit card]. It gives you the most widely accepted and secure way to make purchases when you travel internationally…and at home too. To accept your new chip enhanced [your name debit/credit card] at no additional cost to you, please contact us today at [xxx-xxx-xxxx]. We’ll send your new card as soon as we receive your confirmation.

Opt- Out Conversion: (sample)

Congratulations! You’ve been chosen to receive a new, complimentary chip enhanced [your name debit/credit card]. It gives you the most widely accepted and secure way to make purchases when you travel internationally…and at home too. If you wish to keep your current [your name debit/credit card] and are not interested in your free chip-enhanced card, please contact us at [xxx-xxx-xxxx].

Source: Visa USA

POST CONVERSION MESSAGING

Highlight the new benefits of the chip card and remind cardholders of benefits that stay the same

Activation is the first and most important step in chip card adoption. All communications should provide clear, easy to follow messaging on how and why cardholders should activate their chip card.

Post conversion messaging in the next section is designed to provide you with options at varying lengths you can use in letters, card carriers, inserts, emails or other communications. (sample messages next)

Short version (sample)

Congratulations! You’ve received a complimentary, chip enhanced [your name debit/credit card]. It gives you the most widely accepted and secure way to make purchases when you travel internationally…and at home too. It costs nothing to start using your new card. Simply call to activate today: [xxx-xxx-xxxx].

Medium version (sample)

Congratulations! You’ve received a complimentary, chip enhanced [your name debit/credit card]. It’s the perfect way to pay at home…or when travelling abroad. You can use your card with confidence knowing it’s accepted at millions of merchant locations and ATMs around the world. Plus, security benefits help protect your finances if your card is ever lost or stolen. All these benefits are yours to enjoy at no additional cost to you. For your security, simply call to activate your new card today: [xxx-xxx-xxxx].

Source: Visa USA

Long version (sample)

Congratulations! You’ve received a complimentary, chip enhanced [your name debit/credit card]. It gives you the exceptional acceptance and security benefits you expect from your [your name debit/credit card]. Use your card at millions of locations worldwide – You can pay at international merchants where chip-enabled cards are the standard. That means you have uninterrupted access to funds everywhere in the world your card is accepted. Pay with confidence – Your chip card comes with the comprehensive security and protection benefits you’ve come to expect from [your name debit/credit card]. Continue to enjoy your favorite benefits – Your new card includes all the benefits you received with your previous card. Plus, there are no added costs or fees. The only change is the expanded acceptance you get when you travel abroad. This card replaces your existing [your name debit/credit card] at no additional cost to you. For your security, destroy your existing card and activate your new card today by calling [xxx-xxx-xxxx].

Source: Visa USA

PREPARE YOURSELF FOR SUCCESS!©

Aris Jerahian aris@arisjerahian.com A payment industry executive with more than 20 years of client management, consulting and operational experience which helped establish long-term, successful partnership with financial institutions. He is the author of “Courage to Change,” which aims to help readers improve both their professional and personal lives, and serves as a council member on the Council of Advisors for Gerson Lehrman Group, a global network of executives who provide consultation to investment leaders.